Southern District of Texas
Press releases recorded for this federal judicial district.
Drug Conspiracy and Money Laundering Ring Leader Heads to Prison for 30 YearsRead the Press Release
CORPUS CHRISTI, Texas – Manuel Pena aka “Super,” 48, the leader of a drug trafficking and money laundering conspiracy, has been handed a significant federal sentence, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Janis Graham Jack determined Pena to be a leader in the conspiracy and sentenced him to a total of 360 months in federal prison. In handing down the sentence, Judge Jack considered his extensive criminal history and the need to protect the public from future criminal conduct. She further ordered he serve a five-year-term of supervised release following completion of his prison term and also ordered forfeiture of his interest in a property on Aaron Street in Corpus Christi.
Several others – Ignacio Pena aka “Nacho,” 45, Raul Leal Martinez aka “Indio” or “Wahoo,” 37, and, David Pete Dominguez aka “Buda,” 31, all also of Corpus Christi, previously pleaded guilty in relation to the case as well and were sentenced to 168, 85 and 120 months, respectively. Jose Guajardo aka “Garfield,” 41, Rocky Bazaldua aka “Rock,” 32, and Julieann Gutierrez, 25, also pleaded guilty and will be sentenced at a later date.
The indictment charged all of the defendants with conspiring from June 1, 2008, to Jan. 8, 2013, to possess with intent to distribute more than 50 grams of methamphetamine. The investigation revealed that Manuel Pena, a member of and former leader in the Texas Syndicate prison gang, orchestrated various drug deals in the Corpus Christi area. Evidence proved that in May 2011 Manuel Pena made deals to provide cocaine and methamphetamine to Bazaldua and Dominguez. He admitted he acquired cocaine and agreed to sell methamphetamine to Guajardo. Pena also received methamphetamine from Martinez, a local home builder. Ignacio Pena, Manuel Pena’s brother, helped receive and deliver various amounts of cocaine and methamphetamine to various drug dealers in Corpus Christi.
Martinez and Guajardo also pleaded guilty to conspiring to launder the proceeds of their drug sales through various financial transactions. As part of their plea agreements, Manuel Pena, Martinez and Guajardo also agreed to forfeit their interests in various properties around Corpus Christi.
Pena has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, Texas Department of Public Safety, the Nueces and Kleberg County Sheriff’s Offices, and the Corpus Christi, Aransas Pass and Portland Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Hess.
6 Ordered to Prison in Drug ConspiracyRead the Press Release
McALLEN, Texas – A total of six people have been ordered to prison for terms ranging from approximately 10-24 years for their respective roles in a marijuana and cocaine conspiracy, announced United States Attorney Kenneth Magidson.
Jose Guadalupe Rangel-Hernandez, 51, of Miguel Aleman, was sentenced today by U.S. District Judge Randy Crane to a 292-month-term of federal imprisonment. Area residents Carlos Guerra, 36, of Pharr; Guy Oshiro Lugo, 48, of Alamo; Lineth Guerra, 39, of Mission; and Deborah Garcia, 46, and Alberto Aguirre, 49, both of Weslaco, received sentences of 210, 168, 160, 121 and 235 months, respectively.
All the defendants had previously entered pleas of guilty to one count of conspiring to possess with the intent to distribute more than 1,000 kilograms of marijuana. Additionally, Carlos Guerra and Lineth Guerra were found guilty of conspiring to possess with the intent to distribute more than five kilograms of cocaine.From 2009 and 2011, the defendants were part of drug conspiracy headed by Israel Garcia which was responsible for distributing thousands of tons of marijuana and multi-kilogram quantities of cocaine. In January 2011, Israel Garcia and Lineth Guerra were arrested in a hotel in McAllen and found to be in possession of more than $300,000. Additionally, information obtained as a result of their apprehension led to the seizure of more than 7,000 kilograms of marijuana.
The investigation revealed Rangel-Hernandez, Carlos Guerra, Lineth Guerra and Deborah Garcia all assisted Israel Garcia in transporting the narcotics from the Rio Grande Valley to Florida, Georgia and Ohio.Israel Garcia was also convicted and will be sentenced at a later date.
The investigation leading to the charges was conducted by the Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety. Assistant United States Attorney James Sturgis prosecuted the case.
Former U.S. Army Officer “Hitman” Sentenced for in Murder-for-Hire PlotRead the Press Release
LAREDO, Texas – Kevin Corley, 30, the convicted “hitman” involved in a murder-for-hire plot and drug conspiracy has been ordered to federal prison for 13 years, announced United States Attorney Kenneth Magidson.
Corley, of Columbia, S.C., pleaded guilty last September to conspiracy to commit murder for hire, conspiracy to possess with intent to distribute cocaine and marijuana and for possessing a firearm during in and in relation to a crime of violence. He is the last of seven co-defendants to be sentenced in a conspiracy involving some of the defendants in murder-for-hire and all of them in a drug trafficking conspiracy.
Today, Senior U.S. District Judge George P. Kazen handed Corley 96 months for the conspiracy charges and a consecutive sentence of 60 months for the use of a firearm during the commission of a violent crime for a total of 13 years in federal prison. He was also ordered to pay a $5,000 fine. In pronouncing the sentence, Judge Kazen noted that although Corley became the leader in the overall conspiracy by getting the team together, selling armored vests, purchasing assault rifles and giving them to undercover agents, he ultimately took responsibility by pleading guilty and assisted in the convictions of others as a very effective witness at trial.
Samuel Walker, 29, also a former Army Soldier of Sharon, Miss., and Calvin Epps, 29, of Hopkins, S.C., were convicted following the jury trial in which Corley testified. The remaining four - Marcus Mickle, 21, and Robert Corley, 24, both of Columbia, S.C.; Shavar Davis, 30, of Denver, Colo.; and Mario Corley, 41, of Saginaw, Texas - all pleaded guilty and have been sentenced to terms ranging from 30 months to 15 years in prison for their roles in the overall conspiracy.
The investigation began in January 2011, when Mickle began negotiations with persons whom he thought were members of the Los Zetas Cartel, actually undercover Drug Enforcement Administration (DEA) agents, to purchase marijuana in return for stolen weapons. According to the testimony of DEA agents, the discussions concerned the distribution of marijuana in the Columbia, S.C., area and how Mickle and Epps told undercover agents about a friend in the military who could provide military weapons to them. The agents were later introduced to Kevin Corley who identified himself as an active duty officer in the Army responsible for training soldiers. According to the agents’ testimony, Kevin Corley offered to provide tactical training for cartel members and to purchase weapons for the cartel.
Over the next several months, Kevin Corley continued to communicate with undercover agents regarding the services he could provide the cartel as a result of the training, experience and access to information and equipment items afforded him as an active duty soldier.
On Jan. 7, 2012, Kevin Corley traveled to Laredo and met with undercover agents. During this meeting, he claimed he could raid a ranch located at or near Laredo containing 20 kilograms of cocaine and conduct a contract killing there. Kevin Corley proposed a $50,000 fee for this work but stated he would need to bring his own team. After further negotiation, Kevin Corley stated he would accept a $50,000 fee and five kilograms of cocaine.During March 2012, Kevin Corley allegedly arranged for 300 pounds of marijuana to be delivered to Mario Corley in Charleston, S.C. Kevin Corley also assisted in brokering 500 pounds of marijuana and five kilograms of cocaine for Mickle and Epps and discussed with agents the distribution of these narcotics in South Carolina, Texas and Colorado.
Agents testified that on March 5, 2012, Kevin Corley delivered two AR-15 assault rifles with scopes, an airsoft assault rifle, five allegedly stolen ballistic vests and other miscellaneous equipment to an undercover agent in Colorado Springs, Colo., in exchange for $10,000. At the meeting, Kevin Corley and the undercover agent again discussed the contract killing and the retrieval of the cocaine which was to occur on March 24, 2012. Kevin Corley stated he had purchased a new Ka-Bar knife to carve a “Z” into the victim’s chest and was planning on buying a hatchet to dismember the body. He further told agents he had discussed the plan with Walker, that Walker was going to be a part of the team that would come to Texas to commit the murder for hire and that he and Walker had gone to the rifle range and test-fired Walker’s scoped rifle.
On March 24, 2012, Kevin Corley, Walker and Davis traveled to Laredo and met with undercover agents, at which time they discussed the location of the intended victim, the logistics of performing the contract kill and their respective roles. Walker said he could hit the intended victim from more than two football fields away with his rifle. Immediately thereafter, the three were arrested, during which time a fourth suspect was shot and killed. A subsequent search of the vehicle in which Corley and the other co-conspirators arrived revealed two semi-automatic rifles with scopes, one .300 Caliber Weatherby Magnum bolt-action rifle with a scope and bipod, one hatchet, one Ka-Bar knife, one bag of .223 caliber ammunition and one box of .300 caliber ammunition. During the trial, Kevin Corley testified that the .300 caliber Weatherby Magnum rifle and ammunition belonged to Walker and that Walker was supposed to take the long-distance shot at the intended victim with this weapon.
Meanwhile, also on March 24, 2012, undercover agents met with Epps and Mickle in Columbia, S.C. at a motel parking lot. During this meeting, Epps and Mickle discussed with the undercover agent the pre-arranged purchase of five kilograms of cocaine and 500 pounds of marijuana for which Epps and Mickle were supposed to provide $50,000 as an initial payment. During the meeting, Epps and Mickle were arrested. Epps had a loaded Raven Arms Model MP-25 handgun in his right cargo pants pocket, while Mickle had a loaded Springfield Armory XD-40 handgun in the right side waistband of his pants as well as a loaded spare magazine.
On this same date, Mario Corley, having traveled from Texas to Columbia, S.C., to pick up Robert Corley, proceeded to Summerville, S.C. (near Charleston) to meet with persons who Mario and Robert Corley believed would provide them with 300 pounds of marijuana. Robert Corley admitted to making an agreement with Mario Corley to go to Charleston to pick up “a bunch of weed,” and test the quality of the marijuana, in addition to helping Mario Corley load the bundles of marijuana into Mario Corley’s white van. At the time of his plea, Robert Corley stated he was expected to be paid a pound of marijuana from Mario Corley.
Kevin Corley was permitted to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the DEA and the FBI with the assistance of U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Roberto Ramirez and Jody Young.
Two USA Dry Van Trucking Company Ex-Executives Convicted in $26 Million Fraud SchemeRead the Press Release
HOUSTON – Aurelio “Jim” Aleman, 59, and Oscar Barbosa, 50, have been convicted of conspiracy to commit wire fraud, announced United States Attorney Kenneth Magidson. Aleman was the former chief operations officer of USA Dry Van Logistics (USADV), a cross-border trucking company that services the maquiladora industry. Barbosa was the former controller of the company.
According to records, Aleman and Sergio Lagos - the former chief executive officer of USADV - entered into a financing agreement with GE Capital Corporation (GECC) under which GECC would issue a revolving line of credit which was secured by USADV’s accounts receivables. By January 2010, the maximum borrowing limit under the agreement was increased to $38 million. Pursuant to the agreement, USADV allegedly justified advances on the line of credit by submitting “borrowing base certificates” to GECC.
Aleman and Barbosa admitted that from March 2008 through the end of January 2010, they joined in a scheme to defraud and swindle GECC, a lending company that provided capital to USADV, fraudulently obtaining funds through a revolving line of credit. At the plea hearing, Aleman and Barbosa admitted they schemed to conceal from GECC the truth about USADV’s declining operating performance and financial results. Rather than reveal USADV’s true condition, Aleman and Barbosa misrepresented USADV’s true operating performance and financial results to include the nature of the USADV’s accounts receivable, against which GECC was permitting USADV to borrow hundreds of thousands of dollars on a weekly basis. This caused USADV to appear to be operating more profitably that it actually was. Aleman and Barbosa signed, prepared and/or directed others to prepare certificates that falsely inflated the amount of the company’s accounts receivables and caused them to be submitted to GECC to enable USADV to obtain more funds than would otherwise have been permitted. Aleman and Barbosa perpetuated and concealed the scheme to defraud GECC by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist. Aleman and Barbosa also admitted to submitting false financial statements to auditors and GECC.
When the truth about USADV’s operations and finances were revealed, USADV went into bankruptcy. USADV successfully re-organized under Chapter 11 bankruptcy proceedings and is currently operating with new owners. Lagos, Aleman and Barbosa are no longer affiliated with or employed by the company. The amount of actual loss to GECC was more than $26 million.
As a condition of the their plea agreements, both Aleman and Barbosa agreed to make monthly payments towards restitution to GECC prior to sentencing. In Aleman’s plea agreement, he further agreed to the imposition of a money judgment against him in the amount of $26,254,781 which was ordered to be forfeited to the United States.
U.S. District Judge Kenneth M. Hoyt, who accepted the guilty pleas today, set sentencing for Aleman and Barbosa on Dec. 9, 2013, at which time they face up 20 years in prison and up to a $250,000 fine.
The charges against Lagos remain pending. He is presumed innocent unless and until convicted through due process of law.
The investigation was conducted by Homeland Security Investigations and the FBI. Assistant United States Attorneys Casey N. MacDonald and Grady J. Leupold are prosecuting the case.
Schoolteacher Arrested on Child Pornography Distribution ChargesRead the Press Release
LAREDO, Texas – Over the weekend, federal and local law enforcement authorities arrested Jorge Valadez, 53, for receiving and distributing videos depicting children engaging in sexually explicit conduct, announced United State Attorney Kenneth Magidson.
The criminal complaint, filed today, charges Valadez - a high school teacher in Laredo - with receipt and distribution of child pornography via the Internet.
Valadez made his initial appearance this morning before U.S. Magistrate Judge Guillermo R. Garcia who ordered Valadez be detained without bond pending further criminal proceedings. He is set for a detention hearing on Sept. 19 at 10:00 a.m.
The complaint alleges that an investigator discovered someone sharing several videos constituting child pornography via the Internet. The investigation allegedly led to the home of Valadez in Laredo. According to the complaint, federal agents then obtained and executed a search warrant on Friday evening, at which time, he was taken into custody.
Valadez allegedly used a peer-to-peer network to share images and videos of child pornography.
If convicted, Valadez faces a minimum of five and up to 40 years in federal prison as well as a maximum fine of $250,000.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being investigated by Homeland Security Investigations with the assistance of the Webb County Sheriff’s Department. Assistant United States Attorney Homero Ramirez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
The defendant is presumed innocent unless and until convicted through due process of law.Presidential Tax Service Owner Ordered to Prison for Falsifying ReturnsRead the Press Release
HOUSTON – Sharon Edwards Kitine, the former owner of a now defunct Presidential Tax Service in Houston, has been sentenced to federal prison for falsifying client returns, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Kitine pleaded guilty April 29, 2012, and the tax service establishment she owned closed in March 2012 following her arrest.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Kitine a sentence of 24 months in prison to be immediately followed by one year of supervised release.
The factual basis in support of the plea stated that Kitine claimed false deductions for Houston-area clients that fraudulently increased tax refunds by approximately $205,682 for tax years 2006 through 2011, and she was further ordered to pay that amount in restitution to the IRS.
Kitine was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. However, the government stated its intention to seek Kitine’s immediate custody if she fails to truthfully file her own 2012 tax return by the due date of Oct. 15, 2013. At the hearing today, Kitine sought probation in order to immediately begin to repay the National Treasury for the harm she has caused. The United States responded by advising the court that, despite having served as a paid preparer for others for several years, the IRS had no record that Kitine had ever field a personal tax return prior to being charged in this case. Further, after permitted release on bond in March 2012, Kitine had a filed a 2011 personal income tax return as required by her conditions of release but failed to pay any of the taxes shown due with that return.
Court records indicated that on or about March 29, 2008, Kitine knowingly prepared and caused to be filed with the IRS a false 2007 U.S. Individual Income Tax Return – Form 1040 for taxpayers and fee-paying clients in need of tax return preparation services. Without consent of the taxpayers, Kitine included certain materially false deductions with the intention of generating an excessive federal income tax refund and causing a direct pecuniary harm of several thousand dollars to the IRS.
Specifically, Kitine knowingly and willfully included materially false deductions for a variety of Schedule C deductions as well as Schedule A deductions for home mortgage interest and real estate taxes even though the taxpayers rented their home. This tax return alone caused a loss to the U.S. Treasury in the approximate amount of $11,261.
Kitine also knowingly and willfully prepared and caused to be filed with the IRS another 28 false federal income tax returns for other clients for tax years 2006 through 2011 that generated excessive refunds based upon false and fraudulently inflated deductions and credits that caused another $194,421 in aggregate losses to the IRS.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Ohio Man Convicted of Online Solicitation of A ChildRead the Press Release
CORPUS CHRISTI, Texas – Harley Michael Peterson, 23, has admitted he used a telephone and a computer connected to the Internet to coerce and entice a minor to engage in sexual activity, announced United States Attorney Kenneth Magidson.
Between April 1, and Aug. 4, 2012, Peterson admitted be began communicating with a child he knew to be 15 years of age. He met the child online and their contact primarily occurred on a social networking website and an online computer gaming community website. The communications eventually progressed to telephone calls.
Peterson and the child chatted explicitly about his desire to engage in sexual activities with the child who clearly identified herself as a 15-year-old. As the communications continued, Peterson agreed to travel from his home in Ohio to Corpus Christi to engage in sexual activity with the child.
On Aug. 3, 2012, the child was reported as a runaway by relatives. Through examination of her online activities, relatives were able to determine her whereabouts and those of Peterson, who was subsequently arrested in Corpus Christi.
Senior U.S. District Judge John D. Rainey accepted the guilty plea and has set sentencing on Dec. 16, 2013, at 4:45 p.m. At that time, Peterson faces a mandatory minimum sentence of 10 years and a possibility of life imprisonment as well as a $250,000 fine. He will remain in custody pending that hearing.
Homeland Security Investigations and Corpus Christi Police Department’s Internet Crimes Against Children Task Force ICAC investigated.
Assistant United States Attorney Lance Duke is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Long Time Fugitive Ordered to Federal PrisonRead the Press Release
McALLEN, Texas – Alexis Estevez-Alvarez, 46, of Havana, Cuba, has been sentenced to prison following his convictions of possession with intent to distribute marijuana and failure to appear, United States Attorney Kenneth Magidson announced today. Estevez-Alvarez was convicted July 9, 2013, following less than two days of trial and approximately 30 minutes of deliberation.
Today, U.S. District Judge Randy Crane, who presided over the trial, handed Estevez-Alvarez sentences of 110 and 20 months, respectively, for the drug and failure to appear convictions to be served consecutively for a total sentence of 130 months in federal prison.
Estevez-Alvarez was originally charged in 2003, permitted release on bond and set for trial Oct. 3, 2003, before Judge Crane. Estevez-Alvarez failed to appear for court and was subsequently indicted on that charge as well.
He remained a fugitive for almost 10 years until apprehended on Oct. 29, 2012. On that date, Alvarez-Estevez was discovered in the bed of a Ford F-150 restrained and inebriated at the Progreso Port-of-Entry after someone had crossed him into the United States and then fled back to Mexico.
The original case began on June 20, 2003, when two former deputies with the Hidalgo County Sheriff’s Office approached a residence in Mercedes seeking consent to search the residence. According to evidence and testimony at trial, deputies then found 42 bundles of marijuana totaling 671 kilograms in a shed next to a pre-fabricated house on the property. Estevez-Alvarez stated he lived on the property with his wife along with another friend for approximately four months.
The government proved at trial that while a fugitive for 10 years, Estevez-Alvarez has been able to work and live in both Weslaco and Nuevo Progreso, Tamaulipas, Mexico, as well as maintain a relationship with his now ex-wife.
The defense contended that unknown individuals had “control” of Estevez-Alvarez that prevented him from showing up to court in 2003 and that it was fear of retribution from these individuals that kept him from court over the past decade.
The jury disagreed and found him guilty on both counts as charged.
Estevez-Alvarez 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 Hidalgo County Sheriff’s Office and Homeland Security Investigations. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
Leader of Methamphetamine Smuggling Group Handed 25-Year SentenceRead the Press Release
CORPUS CHRISTI, Texas – Jose Garza Jr., 33, of Palestine, has been ordered to serve a significant federal prison sentence for his involvement in a methamphetamine conspiracy, announced United States Attorney Kenneth Magidson. Garza entered a plea of guilty June 17, 2013, to conspiracy to possess with intent to distribute as well as possession with intent to distribute more than 500 grams of methamphetamine.
Today, Senior United States District Judge John Rainey sentenced him to a total of 300 months in prison to be followed by a five-year-term of supervised release.
In November 2012, Border Patrol agents at the Sarita checkpoint stopped a vehicle driven by Zantana Brauher, 21, of Frankston, at which time a routine K-9 exam resulted in an alert prompting agents to refer the vehicle to secondary for further inspection. A short time later, another vehicle entered the primary inspection area of the checkpoint. Brian Gallandt, 26, of Palestine, was driving and had as passengers Crystal Rodgers, 29, and LaKendra Jackson, 24, both also of Palestine, and Christian Durden, 18, of Houston. A K-9 alerted to the vehicle and they were also referred to secondary inspection.
Agents were able to determine all knew each other and the two vehicles were traveling together. During a detailed inspection, agents discovered two bundles of methamphetamine concealed on Durden’s body, three on the body of Rodgers and three concealed on Jackson’s body. One bundle of methamphetamine as well as a loaded handgun were found concealed on Gallandt. The nine bundles of methamphetamine had a total weight of approximately 4.04 kilograms and a purity of 100%.
A third vehicle traveling with the group was subsequently discovered at a gas station in Riviera. Inside the vehicle were Jose Garza and Claudia Garza, 35, of San Benito. Investigation determined that Garza was the leader of the smuggling group. He had recruited and hired the co-conspirators to travel from Palestine to the Rio Grande Valley to transport the narcotics back for further distribution. Claudia Garza was discovered as the person that had strapped the bundles of methamphetamine to the others.
All co-conspirators also pleaded guilty. Gallandt and Rodgers were each sentenced to 126 months in prison, while Durden, Jackson and Brauher are each serving a 96-month sentence.
Claudia Garza is set for sentence on Oct. 15, 2013.
In federal custody since his arrest, Jose Garza will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.
The conviction and sentence stems from an investigation by Drug Enforcement Administration and Border Patrol. This case was prosecuted by Assistant U.S. Attorney Lance Watt.
Edinburg Man Sentenced to Prison for CarjackingRead the Press Release
McALLEN, Texas – Erasmo Garza, 29, of Edinburg, has been sentenced to prison for carjacking, announced United States Attorney Kenneth Magidson.
Chief U.S. District Judge Ricardo Hinojosa sentenced Garza earlier today for his role in the carjacking that occurred in August 2012. Judge Hinojosa sentenced Garza to 51 months in federal prison to be followed by a two-year-term of supervised release. The Judge further ordered Garza to pay restitution in the amount of $2947.49.
Garza pleaded guilty on March 5, 2013, to carjacking - admitting he forced a woman, who was in the parking lot of a local restaurant, out of her Mercedes Benz. Garza, who had been involved in a high speed chase with local police officers, crashed his vehicle while attempting to elude authorities. He then ran across Texas Highway 83 and into the parking lot of the Macaroni Grill. Moments later, he forcibly removed the victim from her Mercedes and fled from police. Garza was arrested several days afterwards without incident.
Garza has been in federal custody without bond since January 2013, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future..
This investigation leading to the charges against Garza was conducted by FBI and FBI Safe Street Task Force with assistance from the McAllen Police Department. Assistant United States Attorney Leo J. Leo III prosecuted the case.
Corpus Christi Man Sentenced for Robbing Texas Champion BankRead the Press Release
CORPUS CHRISTI, Texas – Vernon Nicholas Tolmie, 52, of Corpus Christi, has been ordered to prison for robbing Texas Champion Bank through use of force and intimidation, United States Attorney Kenneth Magidson announced today. Tolmie pleaded guilty to one count of bank robbery on Tuesday, Feb. 5, 2013.
Today, Senior U.S. District Judge John D. Rainey, who accepted the guilty plea, handed Tolmie a sentence of 156 months in federal prison to be followed by three years of supervised release. He was further ordered to pay restitution to Texas Champion Bank. Judge Rainey also imposed another 16 months in prison for a violation of supervised release on a case from another district.
As part of his plea, Tolmie admitted he robbed the Texas Champion Bank located on Ayers Street in Corpus Christi on July 11, 2012, and again on Nov. 19, 2012. In both robberies, Tolmie presented threatening notes to bank tellers demanding money.
Tolmie was arrested on Nov. 19, 2012, after Corpus Christi Police officers responded to the bank to investigate the robbery. Officers searched the area and found discarded clothes in an abandoned building matching the clothes worn during the robbery.
The investigation revealed that a man had recently fled the building and entered a nearby restaurant. Officers located Tolmie in that restaurant and he was subsequently detained. Tolmie had the cash from the robbery concealed in his boots and admitted it came from the bank robbery. Tolmie was later identified by an eyewitness and fingerprint evidence as having also committed the July 11, 2012, robbery. Tolmie later admitted he committed both bank robberies.
Tolmie has been in custody without a bond since his arrest. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Sam Brown IV.
Nine Charged in Federal Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – Several individuals have been taken into custody following the return of two separate, but related federal indictments alleging various drug trafficking and money laundering charges, announced United States Attorney Kenneth Magidson.
The first sealed indictment, returned Aug, 28, 2013, was unsealed this morning upon the arrests of Roberto Ruiz aka “Bobby,” 37, Mario Enrique de la Fuente, 36, Leonel Mendoza Diaz aka “Masacuata,” 39, and Jose Luis Guerrero aka “Pana,” 40, all of Brownsville. They are expected to make their initial appearances before U.S. Magistrate Judge Janice B. Ellington in Corpus Christi tomorrow. Rodolfo Ruiz Jr. aka “Pollo,” 25, also of Brownsville, is charged in the indictment but not as yet in custody.
Two others - Peter Morales aka “Pirucha,” 30, of Houston, and Ricardo Roberto Olivas aka “Bugs,” 41, of Brownsville, are also charged but currently in state custody. They are expected to make an initial appearance before a U.S. magistrate judge in Corpus Christi on the federal charges in the near future.
The defendants are charged with conspiring from Jan. 1, 2005 to Aug. 28, 2013, to possess with intent to distribute more than five kilograms of cocaine. If convicted of this offense, all face a minimum of 10 years and up to life imprisonment and a possible $10 million fine.
In addition, Roberto Ruiz, Rodolfo Ruiz, de la Fuente and Guerrero allegedly conspired during the same time period to launder the proceeds from distributing controlled substances and also face, upon conviction, a maximum 20 years imprisonment and $500,000 fine.
The indictment also includes a notice of forfeiture of a property owned by Roberto Ruiz.
A separate indictment, returned Sept. 11, 2103, and unsealed today, charges Ricardo Estrada aka “Ricky,” 30, and Alfredo Reyes Jr., 32, both of Brownsville, with possessing and conspiring to possess with intent to distribute 11.06 kilograms of cocaine. Estrada was taken into custody while Reyes is currently considered a fugitive. If convicted, they also face up to life in prison and a $10 million fine.
Warrants remain outstanding for the arrests of Reyes and Rodolfo Ruiz. Anyone with information about their whereabouts is asked to contact the U.S. Marshals Service at 1-877-WANTED2 (1-877-926-8332).
The investigation into these indictments are being conducted through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Customs and Border Protection, Texas Department of Public Safety, Cameron County District Attorney’s Office, Cameron and Willacy County Sheriff’s Offices, and the Brownsville, Port Isabel, Harlingen and San Benito Police Departments. The cases will be prosecuted in Corpus Christi by Assistant United States Attorney Michael Hess.
Massive Sentences Handed Down for Violent 2010 News Year’s Eve Bank Robbery, Among OthersLeader Gets 90 YearsRead the Press Release
HOUSTON – With the sentencing of six defendants today, 11 of the total 14 charged in a series of armed Houston area bank robberies, including the robbery of the Pearland Chase branch bank on Dec. 31, 2010, have now been ordered to prison, announced United States Attorney Kenneth Magidson. The Pearland Bank Robbery itself resulted in a nearly six-hour standoff with law enforcement.
Larry Smith, 37, and Raymond Tierra Johnson, 32, were convicted by a federal jury in March 2013 after five days of trial, while Jeremy Benton, 22, Glenn Bonner, 41, Gregory Wayne Ferguson, 21, Arlington Davis Wilkes aka AD, 23, Carl Ray Turner Jr. aka CT, 27, Edward Johnson, 29,John Berley Scott aka Fresh, 31, Derrick Lashon Paley aka Crybaby, 35, Michael Maurice Wilson Jr. aka Blue/Mikey Poo, 26, Roderick Marshall Beagle, 41, Michael Dushon Duncan aka Mikey, 21, and Kelvin Dewayne Thomas aka Little Kevin, 23, each had previously entered guilty pleas.
Today, U.S. District Judge Gray Miller, who accepted the guilty pleas and presided over the trial, sentenced Raymond Johnson
Benton, Bonner, Scott, Wilson and Wilkes to varying terms of federal imprisonment. Johnson was considered to be the “muscle” of the crew and, on several occasions, assaulted and/or pistol-whipped victims indiscriminately. He received 60 months for conspiracy to commit bank robbery which will run consecutive to two concurrent terms of 300 months on each of two counts of bank robbery. He was further sentenced to 84 and 300 months for each of two counts of using a firearm during the commission of the crime which are to be served consecutively to each other and to other sentences imposed for a total term of 744 months or 62 years in federal prison.Bonner told officers during the standoff that he was going to start to kill victims within minutes if his demands weren’t met. Specifically, he demanded the officers move their vehicles and depart so he could flee the scene. Judge Miller imposed a total sentence for him of 257 months – 137 for the bank robbery charges in addition to 120 months for use of a firearm.
Benton received 151 months for conspiracy to commit and committing bank robbery in addition to a consecutive 84 months for using a firearm, while Scott and Wilson received respective sentences of 151 and 168 months for the conspiracy and bank robberies as well as consecutive 120 months terms for the firearm violations resulting in 271 and 288 months. Wilkes was handed a sentence of 120 months for his role in the conspiracy.
At the hearing today, the court heard testimony from two victims greatly impacted by the defendants’ actions. One specifically mentioned the individual trauma she has experienced and admits suffering from Post-Traumatic Stress Syndrome as a result of the horrific event. Another victim, also a witness at the trial, described the event as a life changing experience. That victim had been beaten in the course of the robbery and was off work for a great deal of time. Both victims also reported they have been unable to return to the banking industry for work and have even been unable to enter a bank since the violent event. The government also provided evidence to the court that during the course of the bank robbery conspiracy, more than 80 victims have been identified.
Yesterday, Smith, determined to be a leader in the overall conspiracy, received a total sentence of 90 years in federal prison. He was ordered to serve 300 months for the varying counts of bank robbery to be served consecutively to 60 months for the conspiracy charge. He further received respective sentences of 300, 300 and 120 months on three convictions of use of a firearm in furtherance of a crime of violence. Those are to be served consecutively to each other and the other sentences imposed for a total of 1080 months in federal prison. At Smith’s hearing yesterday, Assistant United States Attorney (AUSA) Kebharu Smith stated that the sentence imposed should serve as a message to those that have robbed, are robbing or are thinking of robbing banks in the Southern District of Texas, that you will face stiff consequences.
Edward Johnson, Thomas and Duncan had previously received their sentences for their respective bank robbery pleas as well as for using a firearm in furtherance of a crime of violence. Edward Johnson received 60 months plus an additional 24 months and Thomas was ordered to serve 60 months plus 10 months, while Duncan was ordered to serve 87 months and a consecutive 120 months for the use of a firearm. Ferguson received a sentence of 12 months and a day, while Turner, Paley and Beagle have yet to be sentenced.
After trial, Smith was convicted by a jury of committing bank robbery of the Wells Fargo branches on 10978 Grant Road and 13150 Louetta on Aug. 23, 2010, and Nov. 2, 2010, respectively, Wells Fargo locations at 14001 Memorial and 12859 Kimberly Lane in Houston, both on Oct. 7, 2010, the Comerica Bank on Sept. 13, 2010, and the Citibank at 14104 NW Freeway. The jury further found he used a firearm in the offenses on Sept. 14 and Nov. 2, 2010. Smith and Johnson were both convicted of robbing the Chase Bank at 24230 Northwest Freeway in Cypress and for using a firearm in the offense. Johnson was convicted of bank robbery for the Dec. 31, 2010, robbery of the Chase Bank at 1915 North Main in Pearland and for using a firearms in the commission of that crime.
The conspiracy involved “casing” banks for robberies and the selection of banks that did not have security guards or bullet resistant bandit barriers Evidence at trial indicated the conspirators used lookouts during robberies and used stolen or “hot” cars as get-a-way vehicles to commit the offenses. The conspirators recruited others to assist them to rob the banks in exchange for a share of the proceeds taken.
Evidence and testimony revealed most bank robberies were effected through the use of demand notes that Smith had written and through the brandishing and firing of firearms during the course of the robbery to ensure compliance with their demands.
Testimony revealed some of the violence witnessed by those in the banks and the threats made to gain compliance.The charges against these defendants are the result of the efforts of the FBI Bank Robbery Task Force with the substantial assistance and cooperation of police departments in Houston, Pearland and Friendswood, Harris County Sheriff’s Office, Harris County Precinct 5 Constable’s Office, Harris County District Attorney’s Office, Crimestoppers and the Brazoria County District Attorney’s Office. The United States Attorney wishes to recognizes each of these investigative agencies as well as the security departments of Wells Fargo and JP Morgan Chase for their outstanding efforts.
AUSAs Suzanne Elmilady and Kebharu Smith are prosecuting the case.
Texas Mexican Mafia General ConvictedRead the Press Release
HOUSTON - Eric Gomez, aka Valla, 37, of San Antonio, a general in the Texas Mexican Mafia Prison Gang, has entered a plea of guilty to his role in the distribution of heroin, announced United States Attorney Kenneth Magidson.
Gomez was charged along with 25 members or associates of the notorious Texas Mexican Mafia (TMM) prison gang with trafficking in heroin, cocaine and methamphetamine as well as firearms violations, distributing explosive materials and violent crimes in aid of racketeering in October 2012. Court records showed the TMM gang made money by trafficking heroin, cocaine and methamphetamine and by selling firearms.
The TMM formed in the early 1980s in the Texas Department of Criminal Justice. During a four-year-period from 2008 through October 2012, the TMM procured illegal drugs and distributed the drugs to numerous associates involved in drug trafficking in order to carry out the business of the gang. Gang members also sold numerous assault rifles and other guns to FBI sources as well as detonation cord. Gomez himself facilitated the sale of 5.5 kilograms of heroin to a FBI confidential source from December 2011-January 2013.
Today’s plea is one of several that have already occurred in the case. Among those who have entered pleas of guilty include Robert Arechiga, 35, Francisco Galvan, 46, Alexander Garcia, 40, George Maldonado, 46, Carlos Romero, 31, Juan Sarmientos, 46, all of Houston; Valentin Ayala-Gutierrez, 53, Gilbert Gonzalez, 42, Jose Cerda, 27, and Enrique Bravo, 39, all of San Antonio; Ruben Esparza, 35, of Robstown; Jorge Montemayor, 37, and Michael Villarreal, 33, both of Baytown; Alvin Valadez, 42, of Seguin; and Ernesto Villarreal, 36, of Corpus Christi.
U.S. District Judge Nancy Atlas, who has accepted all the guilty pleas in the case, has set sentencing for Gomez for Dec. 2, 2013, at 2:00 p.m., at which time he faces a mandatory minimum sentence of 10 years imprisonment up to a possibility of life as well as a $10 million fine. The others are set for sentencing at various times in early 2014.
Gomez will remain in custody pending sentencing.
The case was investigated by the FBI with assistance from Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, Harris County Sheriff’s Office, police departments in Baytown and Houston and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Tim S. Braley and Mark Donnelly are prosecuting the case.
Houston Woman Charged in Check Cashing SchemeRead the Press Release
HOUSTON – Doris Hayes, 36, of Houston, has been indicted for her role in a check cashing scheme in which she supplied false Social Security numbers to two banks in order to open up various accounts, announced United States Attorney Kenneth Magidson.
Hayes, currently in custody on unrelated state charges, is expected to make an initial appearance before a U.S. magistrate judge in the near future.
According to the superseding indictment, returned today, Hayes opened bank accounts at International Bank of Commerce and University Federal Credit Union using Social Security numbers that did not belong to her.
A previous related indictment charged Sandra Carrier, 57, of Houston, with taking part in a 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 that Hayes opened with false Social Security numbers. Carrier has already pleaded guilty to charges contained in that indictment and was sentenced to 12 months and one day in prison by U.S. District Judge David Hittner on March 12, 2013.
She is charged in today’s superceding indictment with two counts of making a false statement for which she faces up to five years in prison on each as well as a possible $250,000 fine. She is further charged with one count of aggravated identity theft. If convicted on that charge, she faces a possible two-year sentence that must be served consecutively to any other sentence imposed.
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.
A defendant is presumed innocent unless and until convicted through due process of law.Houston Mom and Son Donut Shop Owners Charged with Witness TamperingRead the Press Release
HOUSTON – Kim Hout Lor, 66, and Bun Vireak Long, 19, have been taken into custody on charges of tampering with witnesses in a pending official proceeding, announced United States Attorney Kenneth Magidson today. Lor is also charged with making false statements.
The indictment, returned Aug. 20, 2013, was unsealed upon their arrests this morning. They are expected to make an initial appearance before U.S. Magistrate Judge George Hanks this afternoon, but potentially as early as 10:00 a.m. this morning.
According to allegations, the mother and son operated a donut shop in Porter called Pat’s Donuts, Kolaches & Tacos which had been under an investigation by the Department of Labor (DOL)-Wage and Hour Division for allegedly not properly compensating its work force.
Lor allegedly withheld information from investigators about undocumented aliens under her employment, the total number of employees she employed as well as the number of hours her employees worked, according to the indictment. Additionally, Lor and Long allegedly contacted witnesses and undocumented aliens they employed during the pending investigation to intimidate, threaten or corruptly persuade them in an effort to influence or prevent their testimony to DOL investigators.
If convicted of the witness tampering charges, Lor and Long face a possible 20 years in federal prison as well as a possible $250,000 fine. Additionally, Lor could face another five years if convicted of making false statements and another $250,000 fine.
The case is being investigated by the FBI and DOL-Office of Inspector General and is being prosecuted by Assistant U.S. Attorneys Celia Moyer and Joseph Magliolo.An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Convicted of Bank RobberyRead the Press Release
HOUSTON – Terrance Trent Batiste, 21, and Joshua Demond Clay, 28, both of Houston, have entered guilty pleas in relation to the November 2012 robbery of Amegy Bank in Houston, announced United States Attorney Kenneth Magidson. A third defendant - Kendrick Deswhan Castille, 19, also of Houston – previously also entered a guilty plea in the case.
On Nov. 7, 2012, at approximately 12:00 p.m., the Amegy Bank on 1502 Eldridge Parkway in Houston was robbed. Batiste, Castille and Clay were apprehended by Houston Police Department (HPD) officers a short distance from the bank following a pursuit.
The investigation revealed that Castille and Batiste entered the bank wearing baseball hats. Batiste was armed with a dark colored revolver which was given to him by Castille before they entered the bank. Castille and Batiste both jumped over the teller counter and demanded money from the victim teller. Clay did not enter the bank, but all three got back into their vehicle and fled after the robbery. After a pursuit by HPD, the vehicle carrying the defendants stopped into the Forest Park Cemetery, located at 12800 Westheimer in Houston, where it ran over and destroyed several tombstones. Clothing and hats worn by Batiste and Castille were recovered from the vehicle along with a large amount of U.S. currency.
All pleaded guilty to one count of conspiracy to commit bank robbery, for which each faces up to five years in federal prison and a possible $250,000 fine. Batiste and Castille were also convicted of aiding and abetting aggravated bank robbery for which they face up to 25 years in prison and another maximum $250,000 fine. Both also admitted to aiding and abetting the brandishing of a firearm during a crime of violence for which both will also face a minimum of seven years in prison which must be served consecutively to any other prison term imposed.
U.S. District Judge Kenneth Hoyt, who accepted all of the guilty pleas, has set Castille’s sentencing for Dec. 16, 2013, while Clay and Batiste will be sentenced Dec. 2, 2013, and Nov. 25, 2013, respectively.
All are in custody where they will remain pending their sentencing hearings.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Teacher Arrested on Federal Child Pornography ChargesRead the Press Release
HOUSTON – Derrick Gossett, 32, of Humble, has been arrested and charged with two counts of production of child pornography, announced United States Attorney Kenneth Magidson. At the time of the alleged offense, he was a music teacher at Anderson Elementary School in the Spring Independent School District (ISD).
Originally arrested on state charges, Gossett was taken into custody on these allegations on Friday, Sept, 6, 2013. He made his initial appearance just a short time ago, at which time U.S. Magistrate Judge George Hanks ordered him into custody pending further criminal proceedings. He is set for a counsel determination hearing Wednesday, Sept. 11, at 10:00 a.m. before Judge Hanks.
According to the criminal complaint filed on Sept. 6, Gossett allegedly used a Facebook profile in an effort solicit sexually explicit photographs that constituted child pornography from young males. The complaint further alleges he used images he received from at least one victim in an effort to extort additional images.
Authorities obtained a search warrant for Gossett’s residence, at which time a laptop computer, several thumb drives, cell phones and digital cameras were seized. One external portable hard drive, found in a lock box inside Gosset’s residence, was forensically analyzed and is alleged to contain more than 150 files with images depicting different young males, ranging in age from I 2 to I 7 years old and in various stages of undress.
The case was investigated by the Harris County Precinct 4 Constables Office, Homeland Security Investigations and the Houston Metro Internet Crimes Against Children Task Force with the assistance of the Spring ISD Police Department. The matter was brought as part of 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."
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack.
A defendant is presumed innocent unless convicted through due process of law.Six Men Sentenced to Lengthy Terms for Abducting 19-Year-Old College StudentRead the Press Release
Leader Gets Nearly 23 years
McALLEN, Texas – Six Mexican Nationals convicted of hostage taking and conspiracy to commit hostage taking of a college student have been sentenced to significant federal prison terms, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Randy Crane, who accepted all the guilty pleas, sentenced Roman Rivera-Guillen, 33, Jose Molina, 24, Alfonso Ivan Villasana, 20, Israel Flores Jr., 21, Julio Cesar Fernandez, 25, and Bernardino Sanchez, 23, for their roles in the hostage taking. The court noted that Rivera-Guillen was a leader in the conspiracy and sentenced him to 270 months in federal prison, while Molina, Villasana, Flores, Fernandez and Sanchez, received respective terms of 210, 144, 210, 234 and 210 months imprisonment. As non-U.S. citizens, all are expected to face deportation proceedings upon their release from prison.
According to the record of the case, on Nov. 7, 2012, officers with the McAllen Police Department (MPD) responded to a kidnapping at an apartment in McAllen. The complainant informed the officers that his 19-year-old son had been kidnapped from the apartment at which time they found signs indicating the front door of the apartment had been kicked in.
Family members of the victim received a ransom demand of $700,000 for the safe return of the victim or else he would be injured. The investigation led to the arrest and apprehension of all five individuals who admitted to taking the victim from his apartment at gunpoint. However, the men no longer had the victim and had handed him over to another individual. The victim was released, unharmed, on Nov. 8, 2012.
After hearing the arguments from both the government and defense counsel in federal court today, Judge Crane handed down the prison terms for each man for seizing, detaining and threatening to kill, injure and continuing to detain the victim in order to compel his family to pay a sum of money as an explicit condition for his release. The court took into account the extent of each defendant’s involvement in the hostage taking, noting that Rivera-Guillen was the leader of the criminal venture.
All six men have been held without bond and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the FBI and FBI Safe Street Task Force with assistance from MPD. Assistant United States Attorneys Leo J. Leo III and Kristen Rees are prosecuting the case.
Michigan Man Convicted of Traveling to Laredo to Engage in Illicit Sexual ConductRead the Press Release
LAREDO, Texas – Douglas Alan Butler, 54, a U.S. citizen from Michigan, has entered a guilty plea to traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, announced United States Attorney Kenneth Magidson.
According to the record, Butler started communicating with an undercover officer posing as a 15-year-old female by way of a local chat room. Communication started on March 28, 2013, and lasted for approximately a month until the date of his arrest, April 23, 2013.
During the communication, Butler had engaged in conversations that were sexually illicit in nature. Particularly, Butler indicated that he “could teach her so many things.” Additionally, Butler advised that he had plans of traveling to Laredo and expressed a desire to meet her.
Butler had made arrangements to meet the deputy whom he believed to be the minor female at a local city park and promised to bring a “sex toy” during that encounter. He was arrested upon arrival at that park, at which time a pink vibrator was discovered in his car. A subsequent search of his hotel also resulted in the discovery of 13 condoms and 18 Viagra pills.
Butler faces up to 30 years in federal prison and a maximum $250,000 fine at the time of his sentencing, which will be scheduled for a later date by U.S. District Judge Diana Saldana.
The case was investigated by Homeland Security Investigations and the Webb County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Suntrease Williams.
Houston Woman Gets Federal Prison for Embezzling from BankRead the Press Release
HOUSTON – Hannah Gonzales, 24, of Houston, has been ordered to prison for two years and ordered to pay $55,000 in restitution for embezzling customer funds from the International Bank of Commerce (IBC), announced United States Attorney Kenneth Magidson. She pleaded guilty to the charges June 6, 2013.
Gonzales, an assistant branch manager at IBC, began withdrawing money from customers' CD accounts without their authorization beginning in 2010. By the time she was fired in July 2011, she had withdrawn almost $100,000.
According to records, Gonzales chose customers who were either elderly or out of the country in order to reduce the chance that she would get caught.
Gonzales also took money from her teller boxes without authorization. IBC records demonstrated that she was able to do this by conducting transactions in which there was no customer and by simply taking customer's cash deposits and not placing the cash into her teller box. On the day she was fired, IBC's audits revealed she was short approximately an additional $24,000.
U.S. District Court Judge Vanessa D. Gilmore, who presided over the case, has permitted her to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorney Sharad S. Khandelwal prosecuted the case.
Houston Man Sent to Prison for Distributing and Possessing Child PornographyRead the Press Release
HOUSTON - Charles Wright, 59, of Houston, was ordered to serve 20 years in federal prison following his convictions of distribution and possession of child pornography, announced United States Attorney Kenneth Magidson. Wright was convicted Feb. 6, 2013, by a federal jury on both counts as charged.
Today, U.S. District Judge Kenneth Hoyt, who presided over the trial, ordered Wright into custody for 210 and 30 months, respectively, for the distribution and possession charges. The sentences are to be served consecutively for a total of 240 months in federal prison. The issue of restitution for known victims will be decided at a separate hearing on or before Nov. 18, 2013. He was further ordered to serve the rest of his life on supervised release following completion of the prison term and will have to register as a sex offender.
These charges were the result of an investigation conducted by the FBI Innocent Images Task Force which revealed Wright was making child pornography available to others through the use of Peer to Peer software over the Internet. A task force officer from the Houston Police Department downloaded images of child pornography from the files Wright was making available online. These images included children under 12 being sexually violated by adults and in positions which caused their genitalia to be displayed in a lewd/lascivious manner.
A search warrant was executed on Sept. 14, 2011, at which time computer media including external hard drives were seized. The examination of the computer revealed more than 250 digital images and approximately 53 videos which contained child pornography.
Wright has been in state custody since his arrest on similar state charges on Sept. 14, 2011, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."This case is being prosecuted by Assistant United States Attorney Sherri L. Zack who was assisted at trial by Assistant United States Attorney Robert Stabe.
Former Bryan Chiropractic Clinic Owner Convicted in $3 Million Auto Insurance Fraud ConspiracyRead the Press Release
HOUSTON – The former owner of Private Chiropractic Care in Bryan has entered a plea of guilty to engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, announced United States Attorney Kenneth Magidson.
Brittany Jessie, 24, admitted she participated in a three-year conspiracy to defraud numerous auto insurance companies by creating fraudulent chiropractic bills for chiropractic treatments which were never performed and used as support for fraudulent settlement demand letters sent to auto insurance companies.
During her plea, Jessie admitted that she, Marion Young, 52, and Chase Lindsey, 35, and others engaged in a conspiracy to defraud auto insurance companies. Jessie worked both at Sanjoh and Associates Law Firm in Bryan and as a tech at the chiropractic clinics run by Young, Lindsey and others. Lindsey is a chiropractor licensed to practice in the State of Texas.
Jessie sometimes cashed checks and took the cash to Lindsey for payment. Lindsey routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained and unqualified individuals, including Jessie. Lindsey always prescribed the same six treatments but the patients usually received only two: ice/heat packs and electric stimulation. Lindsey prescribed the treatments be done 3-4 times per week for 5-6 weeks, but the patients usually went once a week for 3-4 weeks and many did not even go back for treatment after one or two visits.
Jessie was instructed on which treatments to mark down in order for the billing to be approved and to alternate treatments on the billing so it did not look suspicious. At one point, Jessie provided a set of treatment guidelines to an employee at Private Chiropractic Care to follow which were needed for the billing of patients. Jessie instructed that employee to mark down patient treatments, even if the treatments were not done, because it was necessary for billing. Jessie further instructed the employee to have the patients initial off next to the fraudulent treatments as if they received them.
Jessie also fraudulently marked down treatments and the patient's pain levels on treatment forms at the Sanjoh & Associates office when the patient had not received the treatment. She also prepared the false chiropractic billing statements at Sanjoh & Associates. Although most of the treatments billed were never performed, Jessie created false and fraudulent chiropractic bills under Lindsey’s name for each of the four clinics in the scheme - Texas Avenue Chiropractic Clinic, H & E Chiropractic, Private Chiropractic Care and Lindsey Chiropractic Care.
Despite changing the name and location of the chiropractic clinic four times, the fraud scheme remained the same. Jessie knew the fraudulent bills she created were used as support for settlement demand letters sent to auto insurance companies. The fraudulent demand letters caused the insurance companies to issue settlement checks and place those checks into the U.S. Mail to be delivered to Sanjoh and Associates.
Jessie acknowledged the scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims. The insurance companies paid at least $940,000 in false claims during 2007-2009, during which time Jessie was paid at least $22,637.
U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, has set sentencing for Dec. 2, 2013, at which time she faces a maximum penalty of 20 years imprisonment and a possible $250,000 fine. As part of her plea agreement, Jessie has also agreed to pay restitution of approximately $941,000 to the insurance companies victimized by the scheme. She was permitted to remain on bond pending her sentencing.
Lindsey and Young both previously pleaded guilty and are scheduled to be sentenced in early 2014. The remaining two defendants charged in the case are scheduled for trial on Sept. 24, 2013. They are presumed innocent unless and until convicted through due process of law.
The criminal charges are the result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. This case is being prosecuted by Assistant United States Attorney Al Balboni and Special Assistant United States Attorney Adrienne Frazior.
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON - A member of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Benjamin Troy Johnson, aka “South,” 42, of Corpus Christi, has pleaded guilty before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity.
According to court documents, Johnson 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. Johnson and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Johnson has admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and the promotion of white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect while his conduct is observed by the members of the ABT.
Judge Lake has set sentencing for Jan. 30, 2014, at which time Johnson faces a maximum penalty of life in prison.Johnson is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. He is the 13th defendant charged in the indictment to plead 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.
Legal Permanent Resident Admits to Attempting to Smuggle More Than $2 MillionRead the Press Release
LAREDO, Texas – Octavio Orizaba, 38, a legal permanent resident from Illinois, has entered a guilty plea to attempting to smuggle more than $2 million to Mexico, announced United States Attorney Kenneth Magidson. This was the largest unreported currency seizure that has been intercepted through Laredo thus far this year.
On June 30, 2013, Orizaba attempted to exit the United States from Laredo with his wife and two children. At that time, he provided a negative declaration as to whether he was transporting weapons, ammunition or currency over the sum of $10,000 into Mexico. However, further inspection resulted in the discovery of 144 plastic-wrapped, vacuum-sealed bundles, which were concealed in the sofa and futon he was hauling in the bed of his pick-up truck. Specifically, 47 bundles were discovered in the sofa, while 97 were found in the futon. The hidden currency totaled $2,147,985.
Today, he acknowledged he concealed the currency and failed to report it to authorities. He further admitted he was hired by someone in the Illinois area to take the money to Guanajuato, Mexico, and expected to be paid for doing so.
Individuals are permitted to carry any amount of currency or monetary instruments into or out of the U. S. However, if the quantity is more than $10,000, they are required to report it to Customs and Border Protection (CBP) officer. “Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, traveler’s checks in any form, money orders and negotiable instruments or investment securities in bearer form. Failure to declare may result in seizure of the currency and/or arrest.
U.S. District Judge Diana Saldana will sent sentencing at a later date, at which time Orizaba is facing up to five years in federal prison and a maximum $250,000 fine. The United States is also seeking forfeiture of the currency seized.
The case was investigated by CBP and Homeland Security Investigations and is being prosecutes by Assistant United States Attorney Suntrease Williams.
Huffman Resident Handed Nearly 18-Year Sentence for Two Child Pornography ConvictionsRead the Press Release
HOUSTON – Ryan Scott Solis, 32, has been sentenced to federal prison for distributing and possessing child pornography, announced United States Attorney Kenneth Magidson. Solis, of Huffman, pleaded guilty Jan. 25, 2013.
U.S. District Judge Melinda Harmon, who accepted the guilty plea, sentenced Solis to 210 and 120 months for the distribution and possession convictions, respectively, which will run concurrently for a total of 210 months in federal prison without parole. In handing down the sentence, Judge Harmon considered stated that this is a very, very serious crime that should be punished. Solis was further ordered to pay restitution to the victims whose images were found on his computer, will serve 10 years of post-prison supervised release and he will also be ordered to register as a sex offender.
Solis came to the attention of authorities when an undercover officer observed an IP address registered to Solis sharing incest or child rape stories, images and videos of child pornography with others online. A search warrant was later executed at his address, at which time three hard drives, one computer tower and miscellaneous CDs/DVDs were seized. A subsequent forensic analysis of the seized items resulted in the discovery of more than 2,700 child pornography images and more than 540 child pornography videos that depicted children involved in lewd exhibitions, deviant sexual acts and sadistic and masochistic behavior. One of the images displayed 4-6 year-old female victim being penetrated by an adult male.
As part of the documents in support of his plea, Solis admitted to possessing and distributing child pornography.
Solis has been in federal custody since July 13, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, initiated and investigated by the Colorado Internet Crimes Against Children Task Force, FBI, Beaumont Police Department and Homeland Security Investigations, 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."This case is being prosecuted by Assistant United States Attorney Megan J. Paulson and former Special Assistant United States Attorney Demetrius Bivins.
Jury Convicts Bryan Woman in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Yolanda Nowlin, 42, has been convicted of conspiracy to commit health care fraud, four counts of health care fraud, conspiracy to commit kickback fraud and aiding and abetting Social Security fraud, United States Attorney Kenneth Magidson announced today. The verdicts were returned late yesterday afternoon following seven days of trial and less than three hours of deliberations.
Nowlin, of Bryan, ran two durable medical equipment companies - Yellabone Medic Care Express Equipment Supply Company and Yellabone Medical Equipment Inc. Nowlin was arrested in December 2012 along with co-defendant Carla Parnell, 50, also from Bryan. Parnell pleaded guilty earlier this year to Social Security fraud and testified against Nowlin at the jury trial.
The evidence at trial showed that between July 2003 and December 2009, Nowlin engaged in a scheme to defraud Medicare and Medicaid. Nowlin submitted claims to Medicare and Medicaid for durable medical equipment (DME) and incontinence supplies that were not delivered, not wanted and not needed by Medicare or Medicaid beneficiaries and were often the result of illegal kickbacks. During the alleged conspiracy, Nowlin submitted approximately $3,391,771.90 in claims to Medicare and Medicaid and received $1,108,316.82 for those claims. Approximately $750,000 was identified as fraudulently paid.
The evidence at trial also showed that Nowlin paid kickbacks to a large number of recruiters over the course of the scheme in return for the referral of beneficiaries to Yellabone.
Nowlin was additionally convicted of aiding and abetting the theft of government money from the Social Security administration. Nowlin and Parnell concealed Parnell’s employment with Yellabone in order to continue Parnell’s receiving Social Security disability benefits to which she was not entitled.
Nowlin faces up to 10 years for aiding and abetting Social Security fraud, up to 10 years for each count of health care fraud, up to 10 years for conspiracy to commit health care fraud and a maximum of five years for conspiracy to commit kickback fraud. She could also face the possibility of up to a $250,000 fine.
Nowlin’s sentencing hearing is set for Dec. 13, 2013, while Parnell is scheduled to be sentenced Dec. 20, 2013. Both women were permitted to remain on bond pending their respective hearings.
The United States is additionally seeking forfeiture of approximately $750,000 to be paid as restitution to Medicare and Medicaid.
The case was the result of a joint investigation conducted by agents from Texas Attorney General’s Office – Medicaid Fraud Control Unit and the Department of Health and Human Services-Office of the Inspector General, Office of Investigations. Special Assistant United States Attorneys Adrienne E. Frazior and Suzanne Bradley prosecuted the case.
Two Area Women Convicted in Home Health Services ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - Sylvia Salinas Ramirez, of Driscoll, and Debra Jean Velasquez, of Robstown, have been convicted of wire fraud and conspiring to do so as part of a scheme to defraud the Texas Medicaid program through fraudulent home health billings, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott.
Ramirez, 52, and Velasquez, 41, were charged in a 14-count federal indictment returned Wednesday, May 8, 2013. Today, they appeared before U.S. District Judge Nelva Gonzales Ramos and entered pleas of guilty to conspiring to submit false and fraudulent bills to the Texas Medicaid Program by wire transmissions as well as wire fraud for using interstate wire transmissions to bill.
The two women admitted that from or about Aug. 1, 2009, through on or about June 15, 2010, they were employed by the Corpus Christi office of MRNG Inc. doing business as Caring Touch Home Health. During that time, they conspired to submit false and fraudulent bills through wire transmissions to the Texas Medicaid program and the Medicaid funded managed care organizations known as Evercare of Texas LLC and Superior Health Plan Inc. for home health services that had not been provided. Ramirez and Velasquez admitted they created false and fraudulent time sheets for former Caring Touch employees for home health services that had not been provided and then fraudulently billed Medicaid, Evercare and Superior in the name of Caring Touch for those non-existent services. They sent approximately 562 of those false and fraudulent bills by wire.
Ramirez and Velasquez also admitted that in order to personally profit from their fraudulent billings, they created phony payroll records from the fraudulent time sheet which they then sent to Caring Tough’s payroll staff. Ramirez and Velasquez then obtained the payroll checks generated from the false and fraudulent time records, forged the signatures of the former Caring Touch employees, then cashed the checks and divided the money among themselves. Caring Touch and the former employees whose names were used on the false time sheets and checks were not accused of any wrongdoing.
Ramirez and Velasquez admitted that as a result of their false and fraudulent claims, Texas Medicaid, Evercare and Superior paid the approximate aggregate sum of $155,127.72. As part of their pleas, the women have agreed to pay restitution in that amount.
Conspiracy to commit wire fraud and wire fraud each carry a maximum punishment of 20 years in federal prison without parole as well as a possible $250,000 fine. Judge Ramos has set sentencing Dec. 3, 2013. Ramirez and Velasquez were permitted to remain on bond pending that hearing.
The charges were the result of a joint investigation conducted by officers and agents of the Corpus Christi Police Department, the FBI, Department of Health and Human Services - Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney Jeffery Preston are prosecuting the case.
Three Ex-Executives of USA Dry Van Trucking Company Charged in Alleged $26 Million Fraud SchemeRead the Press Release
HOUSTON – Sergio Lagos, 44, Aurelio “Jim” Aleman, 59, and Oscar Barbosa, 50, have been arrested following the return of a six-count federal indictment charging wire fraud and conspiracy to commit wire fraud, announced United States Attorney Kenneth Magidson.
The sealed indictment, returned Aug. 27, 2013, was unsealed following the arrest of the McAllen residents today. They are expected to make their initial appearances before U.S. Magistrate Judge Dorina Ramos this morning.
Lagos was the former CEO of USA Dry Van Logistics (USADV), a cross-border trucking company that services the maquiladora industry, while Aleman and Barbosa were the former chief operations officer and former controller, respectively.
The indictment alleges that from March 2008 through the end of January 2010, Lagos, Aleman and Barbosa joined in a scheme to defraud and swindle GE Capital Corporation (GECC), a lending company that provided capital to USADV, fraudulently obtaining funds through a revolving line of credit. Lagos, Aleman and Barbosa allegedly schemed to conceal from GECC the truth about USADV’s declining operating performance and financial results. Rather than reveal USADV’s true condition, Lagos, Aleman and Barbosa allegedly misrepresented USADV’s true operating performance and financial results. According to the indictment, they misrepresenting to GECC the nature of the USADV’s accounts receivable, against which GECC was permitting USADV to borrow hundreds of thousands of dollars on a weekly basis. This caused USADV to appear to be operating more profitably that it actually was.
According to the Indictment, Lagos and Aleman entered into a financing agreement with GECC under which GECC would issue a revolving line of credit which was secured by USADV’s accounts receivables. By January 2010, the maximum borrowing limit under the agreement was increased to $38 million. Pursuant to the agreement, USADV allegedly justified advances on the line of credit by submitting “borrowing base certificates” to GECC. Lagos, Aleman and Barbosa allegedly signed, prepared and/or directed others to prepare certificates that falsely inflated the amount of the company’s accounts receivables and caused them to be submitted to GECC to enable USADV to obtain more funds than would otherwise would have been permitted. Lagos, Aleman and Barbosa allegedly perpetuated and concealed the scheme to defraud GECC by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist. Lagos, Aleman and Barbosa also submitted false financial statements to auditors and GECC, according to the indictment.
When the truth about USADV’s operations and finances were revealed, USADV went into bankruptcy. The indictment alleges USADV successfully re-organized under Chapter 11 bankruptcy proceedings and is currently operating with new owners. Lagos, Aleman and Barbosa are no longer affiliated with or employed by the company. According to the Indictment, the amount of actual loss to GECC was more than $26 million.
Each of the six counts of the indictment carries a maximum punishment of 20 years in prison and up to a $250,000 fine.
The investigation was conducted by Homeland Security Investigations and the FBI. Assistant United States Attorneys Casey N. MacDonald and Grady J. Leupold are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
Illegal Re-Entry After Attempted Capital Murder Results in Significant SentenceRead the Press Release
McALLEN, Texas - Eduardo Castellano-Espinoza, 50, of Miguel Aleman, Tamaulipas, Mexico, has been handed a 78-month federal prison sentence, announced United States Attorney Kenneth Magidson. Castellano-Espinoza pleaded guilty June 18, 2013, to being unlawfully present in the U.S. after deportation.
Just a short time ago, U.S. District Judge Randy Crane upwardly departed from the U.S. Sentencing Guidelines, taking into consideration the defendant’s prior conviction and overall aggravating circumstances. It is expected that he will once again face deportation proceedings following completion of the federal prison term.
On May 2, 2013, Castellano-Espinoza was found attempting to exit the United States. When approached by federal agents, he attempted to evade by fleeing to Mexico. After he was apprehended, it was determined he had been deported in 2010 after receiving a 40-year prison sentence for attempted capital murder of a Texas peace officer. In course of that crime, a Starr County sheriff’s deputy was shot and an elderly woman was pinned beneath Castellano-Espinoza’s out-of-control vehicle.
Castellano-Espinoza will remain in custody pending transfer to a U.S. Bureau of Prison’s facility to be determined in the near future.
This case was investigated by Border Patrol and was prosecuted by Assistant United States Attorney Jason C. Honeycutt.
Four Army National Guard Soldiers Plead Guilty in Connection with Bribery and Fraud Schemes to Defraud the U.S. Army National Guard BureauRead the Press Release
To Date, 15 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
HOUSTON – Four current and former soldiers of the U.S. Army National Guard pleaded guilty today for their roles in bribery and fraud schemes that caused a total of more than $210,000 in losses to the U.S. Army National Guard Bureau.
United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Melanie D. Moraida, 33, of Pearland, Kimberly N. Hartgraves, 28, of League City, Lashae C. Hawkins, 27, of San Antonio, and Vanessa Phillips, 35, of Houston, all pleaded guilty to one count of conspiracy and one count of bribery.
The cases against all four 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, 15 of whom have pleaded guilty.
According to court documents filed in all four 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 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.
Moraida, Hartgraves, Hawkins and Phillips all admitted they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They further admitted they used the personal identifying information for these potential soldiers in claiming they were responsible for referring the potential soldiers to join the Army National Guard, when in fact they had not referred them.
As a result of these fraudulent representations, Moraida collected approximately $14,500 in fraudulent bonuses; Hartgraves collected approximately $2,000 in fraudulent bonuses; Hawkins collected approximately $33,000 in fraudulent bonuses; and Phillips collected approximately $10,000 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, while conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.The defendants are all scheduled to be sentenced on Dec. 17, 2013, before U.S. District Judge Lee H. Rosenthal in Houston.
The cases are being investigated by special agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. These cases are being prosecuted by Assistant U.S. Attorney John Pearson and Trial Attorneys Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.
Former Title Company Employee Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
HOUSTON – Harris County resident Maria Eliza Garza has pleaded guilty to conspiring to defraud seven different Houston-area banks or more than $2 million in 2007 and 2008, announced United States Attorney Kenneth Magidson.
As outlined in documents filed with the court and admitted by Garza during her guilty plea, she and a co-conspirator agreed to carry out a check kiting scheme that targeted seven different financial institutions in the Houston area. While the co-conspirator allegedly devised the scheme which used multiple bank accounts held in the name of title companies he controlled, Garza admitted she assisted by discussing which bank accounts needed money, preparing checks to sign and depositing signed checks at the banks.
Garza, of Houston, admitted as part of her plea that she helped carry out the scheme from at least January 2007 through June 2008. To do so, Garza prepared checks drawn on the title companies’ accounts. The co-conspirator signed the checks and both knew the accounts lacked sufficient funds to cover the checks. Garza deposited the checks into other accounts controlled by the co-conspirator, which artificially inflated the account balances. They would then write additional checks using the artificially inflated balances and deposit them into either the original issuing account or other accounts controlled by the co-conspirator.
Garza also admitted she and conducted the scheme to artificially inflate the account balances and place the funds at her co-conspirator’s disposal to use as interest-free loans and lines of credit. They continued to carry out the scheme even after three of the banks discovered the kiting activity and shut down the relevant accounts. When the scheme finally collapsed in June 2008, the total loss to the affected banks was $2,099,65.72.
U.S. District Judge Lee H. Rosenthal, who accepted Garza’s plea, has set sentencing for Dec. 17, 2013, at which time she faces up to five years in federal prison and a $250,000 fine or twice the pecuniary gain or loss.
The case is being investigated by the FBI and being prosecuted by Assistant U.S. Attorney John Pearson.
98 Months for Two-Time Alien Smuggler Who Assaulted Border Patrol AgentRead the Press Release
LAREDO, Texas – Jose Alberto Izquierdo-Gonzalez, 28, an undocumented Mexican alien who had been living in Laredo, has been ordered to federal prison for assaulting Border Patrol agents and transporting aliens, announced United States Attorney Kenneth Magidson. Izquierdo-Gonzalez entered a plea of guilty March 28, 2013.
Today, Senior U.S. District Judge George P. Kazen sentenced him to a term of 98 months in federal prison. In handing down the sentence, Judge Kazen took note of the defendant’s prior convictions for alien transporting in 2009, entering illegally in the same year as well as damages to a Border Patrol (BP) unit he rammed while trying to elude apprehension. When asked why he had behaved so recklessly, Izquierdo-Gonzalez simply stated that he had gotten scared and panicked because he didn’t want to go to jail. Judge Kazen countered by reminding him that he had assaulted BP agents in 2008 and stated to the defendant that he “must have a bad reaction to these arrests…some people are just like that.” He then told Izquierdo-Gonzalez that he now takes “the big prize” by “smashing vehicles…having persons flopping around in the back of the truck” and hitting agents.
According to court records and testimony presented at this morning’s hearing, BP agents saw Izquierdo-Gonzalez loading persons onto his Ford F-250 truck on Jan. 8, 2013, near the Rancho Viejo Subdivision in Laredo. Upon seeing the agents, Izquierdo-Gonzalez sped away from the riverbanks with aliens in the cab and some in the bed of the truck. One alien who hung onto the truck’s rear bumper was dragged for some distance. After a short pursuit through a residential area involving the truck traveling on residential sidewalks and knocking down a stop sign, he eventually lost control and stopped, facing the agents’ vehicles.With persons still in the bed of the pickup truck, Izquierdo rammed the BP vehicles, injuring one of the agents. He then sped away until he lost control again and crashed into a nearby ditch. Miraculously, the persons in the bed managed to remain in the truck, but were treated for injuries at a local hospital. Izquierdo-Gonzalez was apprehended almost immediately by the agents after abandoning his truck and the passengers. Two of the passengers were identified as aliens illegally in the United States who said they had paid smugglers to get a ride from Izquierdo-Gonzalez.
Izquierdo-Gonzalez maintained not knowing there were persons in the bed of his truck, claiming he was giving a ride to his girlfriend, an undocumented alien who had just crossed from Mexico, and one other person whom he had just picked up.
The matter was investigated by the FBI and Homeland Security Investigations with the assistance of BP, Laredo Police Department and the Webb County Sheriff’s Department. Assistant United States Attorney Homero Ramirez prosecuted the case.
Two Charged in Visa Fraud ConspiracyRead the Press Release
HOUSTON – Two Houston women have been arrested following the return of an indictment alleging conspiracy to commit visa fraud, United States Attorney Kenneth Magidson announced today. Monica Castro, 38, and Blessilda Lagron, 54, were arrested this morning without incident, while Lagron surrendered to federal authorities this afternoon.
The sealed indictment was returned Aug. 21, 2013, and unsealed today as they were taken into custody. They both made their initial appearances before U.S. Magistrate Judge Mary Milloy, at which time, the court ordered both women released upon posting bond.
Castro and Lagrone are charged in a one-count indictment with conspiring to commit visa fraud. The indictment alleges that from September 2009 and continuing through March 2013, Lagrone, with Castro’s assistance, operated a Houston-based company known as IPC Group Inc., which marketed itself as staffing company. Lagrone and Castro allegedly located alien workers from the Philippines and procured H-1B visas on their behalf.
H1-B visas are a category of non-immigrant visa allowing U.S. employers to hire alien workers for specialty occupations. H-1B visa petitioners must certify the correct address where the alien worker will be employed and commit to paying the alien during their employment in the U.S., as well as swear as to the accuracy of statements made in the application.
According to the indictment, IPC Group solicited various alien workers concerning future employment. Lagrone and Castro allegedly filled out the H-1B visa application and the required Labor Condition Application Form. In those forms, they claimed the alien worker would be employed either at the IPC Group address or a Texas hospital (without that hospitals permission), knowing the alien worker would not actually be employed at either address. According to the indictment, the workers were then falsely told that employment was available upon their arrival into the U.S. with an H-1B visa. Once the alien worker arrived to the U.S. on the Visa, Lagrone and Castro allegedly “benched” these alien workers for several months without pay. When actual employment was arranged, Lagrone and Castro backdated checks to preserve the appearance of employment from time of entry into the U.S., according to the allegations.
The maximum penalty, upon conviction, for conspiring to commit visa fraud is five years imprisonment and a fine of $250,000.
The investigation leading to the charges was conducted by agents with the U.S. Department of State, Diplomatic Security Service and Homeland Security Investigations. Assistant United States Attorney Celia Moyer and Special Assistant United States Attorney Daniel Menes are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Kindergarten Teacher Convicted of Sexually Exploiting ChildrenRead the Press Release
HOUSTON - Stephen Wayne Sudduth, 38, of Sealy, has entered a plea of guilty to two counts of production of child pornography, United States Attorney Kenneth Magidson announced today.
The charges against Sudduth arose as a result of an international investigation conducted by members of the Houston office of Homeland Security Investigations (HSI), the office of the Caribbean Attache for Homeland Security, the Texas Attorney General’s Cybercrime Unit, the Public Prosecutor’s Office in Curacao, a special task force unit in Curacao comprised of Dutch and local law enforcement officers and the equivalent of the juvenile sex crimes unit of the Curacao Police Corps.
The investigation began in 2009 when the Texas Attorney General’s Office received a tip concerning Sudduth. A state search warrant for Sudduth’s residence in Sealy was secured and later executed on July 14, 2009. At that time, officers seized a laptop computer and two external hard drives which all were found to contain child pornography.
During the review of the images, officers observed images that contained Sudduth and images that appeared to have been taken in a classroom. They were able to confirm the classroom was at a school in Curacao and that Sudduth taught kindergarten at that school. Houston HSI agents were then contacted to handle the international aspect of the investigation.
Still images of young girls that constituted child pornography were located and found to have been taken with a digital camera.
In December 2009 and May 2010, HSI agents and a forensic child interviewer traveled to Curacao and were able to identify and interview the children depicted in the images.
U.S. District Judge Nancy Atlas, who accepted the guilty plea, has set sentencing for Nov. 22, 2013, at which time he faces a sentence of at least 15 and up to 30 years in federal prison as well as a possible maximum fine of $250,000. Upon completion of any prison term imposed, Sudduth 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.Sudduth has been in custody where he will remain pending his sentencing hearing.
This case, prosecuted by Assistant United States Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former HISD Elementary Teacher Heads to Prison for 20 Years on Child Pornography ConvictionsRead the Press Release
HOUSTON – A 53-year-old Houston resident has been ordered to federal prison following his convictions of distribution and possession of child pornography, announced U.S. Attorney Kenneth Magidson. Juan Antonio Villarreal pleaded guilty Feb. 19, 2013. At the time, he acknoweldged he had been a third grade teacher at a Houston elementary school. Today, U.S. District Judge Vanessa Gilmore handed Villarreal a sentence of 120 and 240 months for the possession and distribution convictions, respectively. The terms sentences will run concurrently for a total 20-year federal prison term. At the hearing, the court heard evidence demonstrating how Villarreal also tricked an underage female relative into taking nude photographs of herself and sending to him, which he then circulated over the Internet. In handing down the sentence, Judge Gilmore remarked how the photos can never be removed from the Internet. Villarreal will also serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
The investigation began after a local law enforcement officer downloaded child pornography over the Internet which they traced to a computer Villarreal used.
On Aug. 31, 2012, federal authorities later executed a federal search warrant at Villarreal's residence in Houston. At that time, they discovered several images and videos of child pornography on a thumb drive inserted into a USB port on a Dell Desktop computer located within the residence. One of the videos included a known minor child victim performing oral sex on an adult male.
They also found child pornography on a Dell desktop computer and five additional thumb drives in the residence. A forensic exam on the devices resulted in the discovery of approximately 1425 images and 277 videos of child pornography.
Villarreal had also admitted he had received, viewed and downloaded child pornography for approximately five years.
He has been in custody since his arrest Aug. 31, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.Assistant U.S. Attorney Robert Stabe prosecuted the case which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Texas Man Convicted of Falsifying Tax ReturnsRead the Press Release
HOUSTON – Cedric Keith Oliphant has entered a plea of guilty for falsifying client returns, United States Attorney Kenneth Magidson announced today along with Bernard Butler, acting special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI).
“Tax return preparers have a duty to their clients to prepare accurate tax returns that comply with the tax laws,” stated Butler. “IRS-CI endeavors to protect revenue by identifying, investigating and recommending prosecution of abusive return preparers. Always remember, it is your responsibility to know what is on your income tax return because ultimately, you are responsible for all the information filed with the IRS.”
According to the factual basis in support of the plea, Oliphant claimed false deductions for local clients that fraudulently increased tax refunds by approximately $325,000 for tax years 2006 through 2008. The tax service establishment he owned closed in March 2012 following her arrest.
On or about Feb. 6, 2008, Oliphant knowingly prepared and caused to be filed with the IRS a false 2007 U.S. Individual Income Tax Return – Form 1040 for a taxpayer and fee-paying client in need of tax return preparation services. Without consent of the taxpayer, Oliphant included certain materially false deductions with the intention of generating an excessive federal income tax refund and causing a direct pecuniary harm of several thousand dollars to the IRS.
Specifically, during his plea hearing today, Oliphant admitted he knowingly and willfully included materially false deductions for gifts to charity and for unreimbursed business expenses a client’s 2007 tax return. This tax return alone caused a loss to the U.S. Treasury in the approximate amount of $11,261.
Oliphant also admitted he had knowingly and willfully prepared and filed dozens more false federal income tax returns for other clients for tax years 2006 through 2008 that generated excessive refunds and cause aggregate losses to the IRS of totaling approximately $325,000.
The plea agreement requires Oliphant make full restitution to the IRS for the fraudulent refunds.
U.S. District Judge Melinda Harmon, who accepted the guilty plea, has set a sentencing date of Nov. 22, 2013, at which time Oliphant faces up to three years in prison and $250,000 fine. Oliphant has been permitted to remain on bond until that hearing.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Owner of “Mail Drop” Convicted of Manufacturing and Selling Counterfeit PostageRead the Press Release
HOUSTON – Susan Spiegel, the former owner of Postal Connections of America, has pleaded guilty to one count of mail fraud, United States Attorney Kenneth Magidson announced today along with Inspector in Charge Robert Wemyss, of the U.S. Postal Inspection Service (USPIS). Spiegel, 70, of Tomball, admitted she caused a loss to U.S. Postal Service (USPS) of more than $39,000.
Postal Connections was a commercial mail receiving agency, or “mail drop,” located in Houston, which was a private business that acts as an agent for receiving and delivering the recipient’s mail. Spiegel had primary responsibility for the daily operations of the business, to include online stamp purchases.
After examining nearly 2000 individual pieces of outgoing mail, investigators determined Spiegel purchased legitimate postage using her company’s Stamps.com account, duplicated it and applied the counterfeit postage to outgoing mail - which was ultimately delivered by the USPS.
Used and re-used sheets of online stamps and more than 1,000 individual counterfeit postage stamps of various denominations were seized from Spiegel’s business. The oldest duplicated stamp dated back to an original print date in 2009. Over time, the investigation revealed a drastic decline in legitimate postage purchased by Postal Connections from Stamps.com.
“The health and success of the Postal Service depends upon strong and aggressive revenue protection,” said Wemyss. “We will continue to identify and pursue dishonest mailers who deliberately avoid proper payment of postage.”U.S. District Judge Lynn Hughes, who accepted the guilty plea, has set sentencing for Sept. 23, 2013. At that time, she faces a maximum punishment of 20 years imprisonment and/or a $250,000 fine. In addition, Spiegel faces a forfeiture money judgment in the amount of $39,256.92 for losses incurred by the USPS.
This case was investigated by the USPIS and is being prosecuted by Special Assistant United States Attorney Tammie Y. Moore.
New Jersey Truck Driver Sentenced for Drug TraffickingRead the Press Release
LAREDO, Texas– Rigoberto Torres, 39, a legal permanent resident from New Jersey, has been ordered to federal prison as a result of his conviction of possession with intent to distribute more than 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Torres pleaded guilty May 13, 2013.
Today, Senior U.S. Senior District Judge George P. Kazen handed Torres a term of 46 months. He is expected to face deportation proceedings following completion of his federal prison sentence.
On Aug. 28, 2012, Torres was arrested at the U.S. Border Patrol (BP) checkpoint on Interstate 35, approximately 29 miles north of Laredo, after he was discovered carrying numerous bundles of marijuana.
Torres was driving a tractor trailer and BP drug dogs alerted to the presence of narcotics during primary inspection. Agents searched the trailer and discovered 171 kilograms of marijuana hidden behind an after-market wall, inside the trailer. Agents learned that Torres had purchased the drug-laden trailer in Edinburg and intended to deliver the marijuana to Atlanta, Ga., in return for $20,000.
Torres, who initiated his trip in New Jersey, gave multiple inconsistent statements regarding his trip and trailer load. Upon further investigation, it was discovered that four days prior to this arrest, Torres had been previously detained by Texas Department of Public Safety (DPS) officers for traffic violations. Torres gave a false story to officers regarding his reasons for business in the State of Texas.
Torres was permitted to remain on bond and voluntarily surrender to the United States Marshals Service in the near future.
Drug Enforcement Administration investigated along with BP and DPS. Assistant U.S. Attorneys Sanjeev Bhasker and Elizabeth Rabe prosecuted the case.
Four Convicted in Northeast Houston Theft and Fraud RingRead the Press Release
HOUSTON – Dana Sue Hales, 41, has entered a plea of guilty to conspiracy to commit bank fraud, possessing stolen mail and aggravated identity theft, United States Attorney Kenneth Magidson announced today along with Bernard Butler, acting special agent in charge, Internal Revenue Service - Criminal Investigation. With her plea, a total of four Houston area residents have now been convicted in federal court in relation to a theft and fraud ring that operated in Northeast Harris County and elsewhere.
Last week, Lindsay Ann Grice, 26, and Jason Craig White, 32, entered pleas of guilty to their part in the conspiracy. Grice was convicted of bank fraud and aggravated identity theft, while White pleaded to possessing stolen mail and possession of a firearm by a convicted felon. On Aug. 9, 2013, Joseph Scott Ryder, 44, also entered pleas of guilty to possessing stolen mail and being a convicted felon in possession of a firearm.
“Individuals who commit identity theft and refund fraud deserve to be punished to the fullest extent of the law,” said Butler. “These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS - CI remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
According to the information revealed in open court, beginning at least in January 2012 the defendants broke into “blue” mail boxes located at or near area post offices to steal mail. Much of what the defendants stole included outgoing mail from citizens paying their bills. After opening the mail, they created false identifications and used them to open bank accounts and deposit the checks. On more than one occasion, area law enforcement were able to seize gym bags full of stolen mail from locations where the defendants were staying.
During the investigation, Grice was identified from bank surveillance photos negotiating stolen checks at First Convenience Bank. At the time of her guilty plea, she admitted she participated in the mail theft ring and had used the personal identification information of another person to cash stolen checks.
Information from court documents also revealed that in addition to stealing mail and cashing the checks using false identifications, Hales prepared false federal income tax returns and deposited the refund checks to accounts under her control.
On Sept. 5, 2012, Ryder was arrested at the residence of Hales on a parole violation warrant, at which time he was found to be in possession of a firearm. Ryder subsequently admitted that he, Hales and White were stealing mail, creating false identifications and cashing checks.
Later that month, agents and officers attempted the arrest of White, at which time he fled and attempted to pull a firearm. However, he dropped the gun and was arrested a short distance away. Stolen mail and additional firearms were found in a subsequent search of the residence. White confessed to participating with Hales, Ryder and others in stealing mail.
The conspiracy count and the bank fraud counts each carry a possible punishment of up to 30 years imprisonment as well as $1 million fine. For possessing stolen mail, all but Grice face an additional five-year possible term of federal imprisonment and a $250,000 fine. White and Ryder each also face a possible punishment of up to 10 years in prison and a possible $250,000 fine for being felons in possession of a firearm. Additionally, Hales and Grice will also have to serve a mandatory two-year prison term for aggravated identity theft which must be served consecutively to any sentence imposed.
U.S. District Judge Melinda Harmon, who accepted the pleas, has set Ryder’s sentencing for Oct. 25, 2013, while Grice and White will be sentenced Nov. 18, 2013. Hales is set for Nov. 22.
The matter was investigated by IRS-CI and the U.S. Postal Inspection Service with important contributions from the Harris County Sheriff’s Department, Harris County Precinct Four Constable’s Office, Humble Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the U.S. Marshals Service Violent Offenders Task Force. The case is being prosecuted by Assistant U.S. Attorney James R. Buchanan.
Local Man Gets 10 Years for MethamphetamineRead the Press Release
CORPUS CHRISTI, Texas - A Corpus Christi man will be serving a significant sentence in federal prison following his conviction of one count of conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, United States Attorney Kenneth Magidson announced today. Jerame Cruz, 30, pleaded guilty Jan. 11, 2013.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Cruz to a total of 120 months in prison to be followed by a five-year-term of supervised release.
In August 2012, law enforcement officials executed two search warrants at residences in Corpus Christi. At that time, officers seized approximately 339 grams of methamphetamine as well as $13,000, a .223 caliber rifle, a .380 caliber pistol and approximately 175 rounds of various caliber ammunition. Laboratory analysis determined the methamphetamine had a purity of more than 92%.
In federal custody since his arrest, Cruz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The FBI - Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Corpus Christi Police Department Gang Unit investigated.
This case was prosecuted by Assistant U.S. Attorney Lance Watt.
tenance and transportation supervisor for PISD, maintained political control in Progreso through his sons Omar Vela, the mayor of Progreso, and Michael Vela, president of the PISD Board of Trustees. The indictment charges that Jose Vela controlled members of the PISD Board of Trustees through a system of reward and retaliation. That is, board members who voted as directed by Jose Vela were allegedly rewarded with bribe money, but those who did not follow his direction were faced with retaliation.
According to the Indictment, from 2004 to 2006, the construction company paid Omar Vela approximately $85,000 in bribes in order to be hired on projects in Progreso, including the construction of an elementary school, a school gymnasium and a municipal park. The indictment further indicates that in 2008 and 2009 the attorney paid nearly $10,000 to the three defendants in order to be hired as local counsel for PISD.
The Indictment also alleges that from 2009 to 2012, Omar Vela instructed the owner of the electrical and plumbing supply company to provide fraudulent invoices to PISD and the City of Progreso for products that were not supplied. When the invoices were paid, Omar Vela allegedly instructed the owner of the supply company to return the funds to Omar Vela as kickbacks. Through this scheme, Omar Vela is alleged to have stolen more than $14,000 from the City of Progreso and PISD.
If convicted, each face up to 20 years in prison for mail fraud, five years for the conspiracy, 10 years for each of the bribery and theft involving federal programs, and five years for each of the six counts of violations of the travel act. All charges also carry a possible maximum fine of $250,000.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson 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.Corpus Christi Man Gets Nine Years for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Michael Anthony Almendarez, 31, has been ordered to federal prison following his conviction of one count of distributing child pornography, United States Attorney Kenneth Magidson announced today. Alemendarez pleaded guilty May 30, 2013.
Today, Senior U.S. District Judge Hayden Head sentenced Almendarez to 108 months in federal prison to be followed by 15 years of supervised release. In handing down the sentence, the court considered defendant’s actions in committing the crime and stated that his use of a cell phone to engage in this behavior was particularly harmful since so many children have cell phones.
Almendarez came to the attention of law enforcement after a concerned citizen reported the receipt of unsolicited images of child pornography on his cell phone. The citizen explained that he had previously loaned his phone to a minor female relative who worked with Almendarez at a local restaurant.
One evening while working at the restaurant, Almendarez borrowed the minor’s phone, not knowing it did not belong to her. Almendarez then sent several pictures of child pornography via text message to the phone. By this time, the phone was once again in the possession of the relative who reported the incident to the police.
On Aug. 3, 2012, a state search warrant was executed at the Corpus residence of Almendarez. A cell phone was obtained from Almendarez and found to contain child pornography. Almendarez admitted to having sent the pornographic images to a person he believed to be the young co-worker.
The FBI investigated the case along with the Corpus Christi Police Department’s Internet Crimes Against Children Task Force with assistance of the Nueces County Sheriff's Office.
This case, prosecuted by Assistant U.S. Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Abercia and Other Former Officials ConvictedRead the Press Release
HOUSTON – Former long-time Harris County Precinct One Constable Jack Abercia has been convicted on 11 counts of exceeding authorized computer access, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen L. Morris. Also entering guilty pleas today were Weldon Kenneth Wiener, his former chief lieutenant, and Michael Butler, his former office chief. Weiner and Butler were convicted on one count of conspiracy.
The three Houston residents were charged in an indictment returned Tuesday, Jan. 10, 2012.
Today, Abercia admitted as part of his plea that he unlawfully accessed the National Crime Information Center (NCIC) database on multiple occasions for private financial gain at the time he served as Harris County Precinct One Constable. NCIC is restricted to genuine law enforcement purposes. Users must undergo training and screening, have passwords that are monitored and are instructed that the database is not to be used for non-law enforcement reasons nor beyond in the performance of their official duties. Abercia was convicted of 11 specific acts of unauthorized access or access in excess of official authority in November 2011, but court documents allege the practice had been occurring in the office for a longer period of time.
The investigation revealed Abercia performed background checks for various contractors in return for money. Weiner and Butler admitted they conspired to perform those background checks. On one occasion, Abercia was approached and offered $3000 for having computer searches conducted on four prospective employees. Weiner was also at that meeting. After receiving the money, Abercia said, “God willing, this money will go towards my elevator.” The factual basis in support of the plea indicated he had been considering having an elevator installed in his residence for health reasons, but never did so.
Abercia offered to arrange for more searches but stated that Weiner must be paid as well.In total, Abercia received $9000, while Weiner was paid $1000 for his part in having the NCIC searches conducted.
Butler admitted as part of his plea that he was informed of an improper search and had a duty to report, but failed to do so.
U.S. District Judge Keith P. Ellison, who accepted the guilty pleas, has set sentencing for Nov. 26, 2013. At that time, Abercia faces up to five years in federal prison for each count of exceeding authorized computer access. For their conspiracy convictions, Weiner and Butler also face up to five years imprisonment. All counts also include a possible fine of $250,000.
They were permitted to remain on bond pending their sentencing hearing.
This case was investigated by the FBI Houston Law Enforcement/Border Corruption Task Force with special assistance from the Houston Police Department - Internal Affairs Division and the Texas Rangers and is being prosecuted by Assistant U.S. Attorney Michael Wynne.
Registered Sex Offender Charged with Producing Child PornographyRead the Press Release
HOUSTON – Donald Post, of League City, 68, has been indicted for production and distribution of child pornography involving a four-year-old minor female, United States Attorney Kenneth Magidson announced today. The indictment was returned late this morning by a Houston federal grand jury.
Post was arrested on Aug. 8, 2013, based on a criminal complaint and appeared before U.S. Magistrate Judge John Froeschner in Galveston on Aug. 13 for a detention hearing. At that time, the court found there to be probable cause he committed the crimes and that Post, allegedly a registered sex offender, was a danger to the community and a flight risk. He was subsequently ordered into custody pending further criminal proceedings.
The criminal complaint alleges the four-year-old female victim was photographed in lewd and lascivious poses. Post then allegedly distributed these images via the Internet. According to the charges, Post authored a document which not only detailed the production of the child pornography but chronicled his molestation of this very young victim. The account of the incident is incredibly graphic, according to allegations, and makes references to his prior acts of molestation for which he was convicted and subsequently ordered to register as a sex offender.
If convicted, Post faces a minimum of 15 and up to 50 years imprisonment for the production charge as well as a minimum of 10 and up to 40 years imprisonment for distribution of child pornography. If convicted on either of these charges and the court finds he was in fact a registered sex offender at the time of the offense, he may also face another 10-year prison term that must be served consecutively to any other sentence imposed. Both convictions also carry as possible punishment a maximum fine of $250,000. Upon completion of any prison term imposed, he also faces a maximum of life on supervised release and he will again be required to register as a sex offender.
This case, investigated by the FBI and prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Progreso Mayor and Other Public Officials Charged in Conjunction with Bribery SchemeRead the Press Release
McALLEN, Texas - Jose Guadalupe Vela Jr., 64, Omar Leonel Vela, 35, and Michael Vela, 29, have been arrested on charges of conspiracy, mail fraud, violations of the Travel Act, theft and bribery, United States Attorney Kenneth Magidson announced today.
The sealed indictment, returned in Houston Aug. 21, 2013, was unsealed upon the arrest of Jose Vela and his sons Omar and Michael Vela today in Progreso. They are expected to make their initial appearances before a U.S. Magistrate Judge Dorina Ramos in McAllen tomorrow morning.
The three men are charged based on their alleged participation in a scheme to create a “pay to play” public contracting system in Progreso. According to the indictment, they used their control of Progreso municipal government and the Board of Trustees of the Progreso Independent School District (PISD) to extract bribes and kickbacks from service providers to PISD and the city. PISD receives more than $1 million per year in federal funds from the U.S. Department of Education.
The 10-count indictment alleges that from June 2004 until the date of indictment, the Vela family members conspired to obtain bribes and kickbacks from several service providers. Those allegedly include a construction company and an architectural firm hired as contractors by the city and PISD, an attorney hired as local counsel to advise PISD and a company that supplied PISD and the city with electrical and plumbing supplies.
According to the indictment, Jose Vela, the maintenance and transportation supervisor for PISD, maintained political control in Progreso through his sons Omar Vela, the mayor of Progreso, and Michael Vela, president of the PISD Board of Trustees. The indictment charges that Jose Vela controlled members of the PISD Board of Trustees through a system of reward and retaliation. That is, board members who voted as directed by Jose Vela were allegedly rewarded with bribe money, but those who did not follow his direction were faced with retaliation.
According to the Indictment, from 2004 to 2006, the construction company paid Omar Vela approximately $85,000 in bribes in order to be hired on projects in Progreso, including the construction of an elementary school, a school gymnasium and a municipal park. The indictment further indicates that in 2008 and 2009 the attorney paid nearly $10,000 to the three defendants in order to be hired as local counsel for PISD.
The Indictment also alleges that from 2009 to 2012, Omar Vela instructed the owner of the electrical and plumbing supply company to provide fraudulent invoices to PISD and the City of Progreso for products that were not supplied. When the invoices were paid, Omar Vela allegedly instructed the owner of the supply company to return the funds to Omar Vela as kickbacks. Through this scheme, Omar Vela is alleged to have stolen more than $14,000 from the City of Progreso and PISD.
If convicted, each face up to 20 years in prison for mail fraud, five years for the conspiracy, 10 years for each of the bribery and theft involving federal programs, and five years for each of the six counts of violations of the travel act. All charges also carry a possible maximum fine of $250,000.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson 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.Pearland Septuagenarian Convicted in Child Pornography CaseRead the Press Release
GALVESTON, Texas – A federal jury in Galveston has returned a guilty verdict against David Paul Roetcisoender, 72, of Pearland, for distribution and possession of child pornography, United States Attorney Kenneth Magidson announced today. The verdict was returned late yesterday following a two-day trial and approximately two hours of deliberation.
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.
U.S. District Judge Gregg Costa, who presided over the trial, has set sentencing for Nov. 13, 2013. At that time, Roetcisoender faces a sentence of up to 10 years imprisonment for the possession charge as well as at least five and up to 20 years on each of the two counts of distribution. The convictions also carry as possible punishment a $250,000 fine. Upon completion of any prison term imposed, Roetcisoender 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.
Roetcisoender was arrested on the federal charges on Nov. 14, 2012. He has and will remain in custody pending further criminal proceedings.
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."
Mexican Who Tried to Threaten Girlfriend into Marriage Gets Federal Time for Illegally Re-Entering the CountryRead the Press Release
LAREDO, Texas – Alejandro Mendoza-Delgado, a 35-year-old citizen of Mexico, has been handed a more than two-year federal prison sentence for entering the United States illegally after having been deported, United States Attorney Kenneth Magidson announced today. Mendoza-Delgado pleaded guilty March 12, 2013.
Today, U.S. District Judge Diana N. Saldaña handed Mendoza-Delgado a sentence of 28 months. At the hearing, evidence established that Mendoza-Delgado was previously deported on Nov. 7, 2012, after serving a two-year sentence for using a pistol to threaten to kill his then girlfriend and her family if she did not marry him.
On Jan. 19, 2013, Border Patrol (BP) agents encountered Mendoza-Delgado at the BP checkpoint 29 miles north of Laredo as a passenger aboard a commercial bus headed for San Antonio. Agents arrested him after they discovered he did not have permission to enter or remain in the United States.
Agents ran a background check and discovered Mendoza-Delgado had been previously convicted for aggravated assault with a deadly weapon.
The investigation leading to the charges in this case was conducted by Border Patrol. Assistant United States Attorney Homero Ramirez prosecuted the case.
Laredoans Sentenced in Alien Smuggling CaseRead the Press Release
LAREDO, Texas – Luis Alberto Loera, 27, and Anthony William Martinez, 19, both residents of Laredo, have been ordered to federal prison in relation to an alien smuggling conspiracy, United States Attorney Kenneth Magidson announced today. Both pleaded guilty Feb. 15, 2013.
Today, Senior U.S. District Judge George P. Kazen, who accepted the guilty pleas, sentenced Loera and Martinez to 80 and 60 months in prison, respectively. Both were further ordered to serve three-year-terms of supervised release following completion of their prison terms. In handing down the sentence, Judge Kazen took into consideration the extensive scope of the organization, the estimated number of aliens transported, the leadership roles of the defendants and their personal background. As a part of their supervised release, Judge Kazen also ordered Loera and Martinez to complete 150 and 120 hours of community service, respectively, after their release from federal custody.
Between July and August 2013, Loera and Martinez were suspected to be the organizers of several alien smuggling incidents involving numerous illegal aliens and stolen vehicles, but were never apprehended on scene by law enforcement. The investigation linked these two individuals as leaders and organizers of an extensive alien smuggling organization that coordinated the transportation and harboring of estimated several hundred illegal aliens over the course of several months.
At the time of their pleas, Loera and Martinez admitted to being involved in a long-running conspiracy to transport a large number of aliens within the United States for profit.
Both have been in custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Sonah Lee.
Houston Man Charged with Sex Trafficking of A MinorRead the Press Release
HOUSTON – Alexander Joseph Johnson, 24, of Houston, has been indicted on charges of sex trafficking of a 15-year-old female, United States Attorney Kenneth Magidson announced today.
Johnson was arrested on Aug. 6, 2013, based on a criminal complaint. On Aug. 8, he appeared before U.S. Magistrate Judge Nancy Johnson for a detention hearing. At that time, Judge Johnson found there was probable cause to believe he committed the crime of sex trafficking of a minor, that he was a danger to the community and a flight risk and ordered him into custody.
According to the criminal complaint, the victim was forced to perform sex acts with strangers for money and turn that money over to Johnson. Johnson allegedly posted advertisements online for commercial sex for the victim in Houston and Colorado. The victim was forced to earn $500 dollars an evening, according to the complaint, and when she met her quota, Johnson would allegedly “reward” her by having sex with her. Allegations also include that Johnson provided the victim with marijuana and alcohol and only provided her food at his discretion.
If convicted, Johnson faces a minimum of 10 years and up to life in federal prison as well as a maximum fine of $250,000. Upon completion of any prison term imposed, he also faces a maximum lifetime term of supervised release and he will be required to register as a sex offender.
The Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, investigated.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Mexican National Convicted of Illegal Re-entry Despite Fraudulently Obtaining Texas Birth CertificateRead the Press Release
McALLEN, Texas - A federal jury in McAllen has convicted Mexican National Felipe Oviedo-Cerda, aka Felipe Telles-Sanchez or Mario Trevino-Leal, 55, on one count of illegally re-entering the country, United States Attorney Kenneth Magidson announced today. The verdict was returned following a two-day trial and approximately two hours of deliberations.
During trial, the government presented documentary evidence and witness testimony illustrating Oviedo-Cerda’s unlawful entry despite being an aggravated felon. Since his first deportation in 1984, the evidence showed he had relied upon numerous aliases and other false information to avoid detection by law enforcement and immigration authorities.
In 2002 and while in federal custody pending a similar indictment, Oviedo-Cerda fraudulently obtained a delayed birth certificate from the State of Texas reflecting that he was born in Rio Grande City in 1958. The Department of Vital Statistics later flagged this document only to re-issue the birth certificate in 2008 to him after had been released from federal prison, deported and provided additional false documentation. The evidence at trial indicated Oviedo-Cerda had resided in the United States since 2008 by relying upon this birth certificate and other false documents.
At trial, the government also relied upon expert fingerprint testimony to connect Oviedo-Cerda to his long history of aliases and false identities. Other witnesses with personal knowledge of the defendant testified that despite his birth in Zacatecas, Mexico, Oviedo-Cerda used forged, altered and fraudulent documents to obtain the delayed birth certificate under the name Felipe Telles. Based upon this evidence, the Texas Department of Vital Statistics has again flagged this birth certificate.
The defense attempted to convince the jury that the Texas delayed birth certificate proved he was born in Rio Grande City and/or proved the valid birth certificate at least gave him status to be in the country when apprehended. The jury disagreed and found him guilty as charged.
Chief U.S. District Judge Ricardo H. Hinojosa, who presided over the trial, has set sentencing for Nov. 25, 2013, at which time he faces up to 20 years imprisonment. Oviedo-Cerda has been in custody since his arrest Sept. 23, 2011, where he will remain pending sentencing.
This case was investigated by Border Patrol and is being prosecuted by Assistant United States Attorney Grady J. Leupold.