Southern District of Texas
Press releases recorded for this federal judicial district.
Local Businessmen Convicted for Hiring and Transporting Undocumented AliensRead the Press Release
HOUSTON – Thomas Gard, of Nederland, has entered a plea of guilty to conspiring to transport undocumented aliens, concealing and harboring undocumented aliens and inducing and encouraging their residence in the U.S. for commercial advantage and financial gain, United States Attorney Kenneth Magidson announced today along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI) in Houston. Gard, 50, was charged along with Phillip Taylor Hallmark, 49, of Winnie, in relation to the August 2010 transportation of at least 42 undocumented aliens to cleanup an oil spill in Kalamazoo, Mich.
Hallmark, the owner of Hallmark Industrial Services Inc. (HIS), pleaded guilty to the conspiracy April 11, 2013. Gard was a manager at HIS.
“Jobs are a major reason people come to America - be it in accordance with our laws or by breaking them. Those who facilitate the latter for the sake of profit need to understand that their actions come with a price,” said Moskowitz. “Those involved in the illicit hiring of workers should take note - doing business in this manner could wind up costing them their freedom.”
According to the factual basis in support of Gard’s plea today, HIS was contracted by Garner Environmental to clean up a ruptured Enbridge pipeline that resulted in an oil spill in Kalamazoo. Agents learned HIS knowingly employed undocumented aliens to clean up the oil spill and fraudulently completed work authorization forms on their behalf. It was a part of the conspiracy that the aliens were housed in hotels, provided meals and transportation to and from the worksite while they worked to clean the oil spill.
To further the employment of the undocumented aliens, Hallmark and Gard paid them in cash. HIS would cash the undocumented aliens’ checks en masse at a local bank in Winnie for the work done in Michigan. Once the checks were cashed, Hallmark would pay the undocumented aliens less than what he was paid by the contractor. The aliens claimed they never saw the checks before they were cashed and were paid $800 per week.
The investigation revealed the undocumented aliens received less than what the contractor paid HIS.
Gard admitted he conspired with Hallmark to transport the undocumented aliens back from Michigan after a now former U.S. Congressman accused HIS of hiring undocumented aliens to clean up the Kalamazoo oil spill. Gard assisted in arranging the transportation, travel, food and hotel accommodations for the undocumented aliens.
Both Hallmark and Gard face a maximum of 10 years in federal prison and a possible $250,000 fine at sentencing. Hallmark is set for Oct. 25, 2013, while Gard will be sentenced Nov. 8, 2013, at 10:00 a.m.
HSI investigated. The case is being prosecuted by Assistant United States Attorneys Kebharu Smith and Suzanne Elmilady.
Corpus Man Handed 13-Year Sentence for Local Bank RobberyRead the Press Release
CORPUS CHRISTI, Texas – Glen Lee Sympson has been ordered to federal prison for committing a bank robbery of Prosperity Bank in Corpus Christi in early 2013, announced United States Attorney Kenneth Magidson. Sympson pleaded guilty June 3, 2013.
Today, U.S. District Judge Hayden Head, handed Sympson a sentence of 156 months in federal prison to be immediately followed by a three-year-term of supervised release. In assessing the sentence, the court considered his status as a career offender under the U.S. Sentencing Guidelines due to his two prior convictions for robbery in June 2000 and November 2004.
On Jan. 2, 2013, at approximately 10:30 a.m., Sympson robbed the Prosperity Bank on Leopard Street in Corpus Christi. He entered the bank wearing a disguise consisting of a wig and a beard and displayed a handgun at bank employees and others present in the lobby. Sympson was heard stating, “this is a robbery, no one call the cops or push any buttons. Get your hands up.” After the branch manager activated the alarm, Sympson yelled “get your hands out of there.”
Witnesses observed Sympson flee the bank with cash and get into a vehicle and were able to provide the license plate to officers. Officers soon located him and arrest Sympson at his residence.
Sympson, was arrested on Jan. 2, 2013, at his apartment on the 9800 block of La Branch Street in Corpus Christi.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI investigated with the assistance of the Corpus Christi Police Department. Assistant United States Attorney Jeff Miller prosecuted the case.
Two Plead Guilty to Involvement in Aryan Brotherhood of Texas Racketeering MurderRead the Press Release
HOUSTON - An Aryan Brotherhood of Texas (ABT) gang member and an ABT associate have pleaded guilty to charges related to a May 2008 murder of an ABT prospect member in Atascosa County.
The guilty pleas were announced today by United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Shane Gail McNiel, aka “Dirty,” 34, of San Antonio, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to the charge of accessory after the fact in the murder. Destiny Nicole Feathers, 24, of Jourdanton, pleaded guilty to the same offense on Aug. 14, 2013.
According to information presented in court, McNiel was an ABT member and Feathers was associated with the gang, a powerful race-based, statewide organization that operates inside and outside of state and federal prisons throughout Texas and the United States. According to court documents, an ABT prospect member was murdered by Jim Flint McIntyre, aka “Q-Ball,” Michael Dewayne Smith, aka “Bucky,” and another ABT gang member for allegedly stealing drugs he was ordered to deliver to a customer on behalf of the ABT. According to court documents, the prospect was murdered as a result of a “discipline” ordered by Frank Lavell Urbish, aka “Thumper,” and his superiors. The body was discovered in Atascosa County on May 4, 2008. McIntyre, Smith and Urbish each pleaded guilty in 2011 to the racketeering murder.
According to their plea agreements, McNiel and Feathers helped hide a shotgun that they knew had been used to murder the victim. Following the murder, Urbish and Feathers drove to McNiel’s house with the shotgun wrapped in a sheet and gave it to McNiel who then hid the shotgun in a metal shed behind his house. According to court documents, Feathers further assisted McIntyre by disposing of the victim’s bloody clothing.
According to court documents, 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. Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to court documents, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Jan. 30, 2014, McNiel and Feathers each face a maximum penalty of 15 years in prison.
McNiel and Feathers are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. They represent the 10th and 11th 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.
Former Judge Abel Limas Gets 72 Months in Prison for Taking BribesRead the Press Release
BROWNSVILLE, Texas – Former 404th State District Judge Abel Corral Limas has been ordered to prison following his conviction for racketeering, United States Attorney Kenneth Magidson announced today. Limas pleaded guilty March 31, 2011.
Today, U.S. District Judge Andrew Hanen, who accepted the guilty plea, handed Limas a total sentence of 72 months in federal prison. At the hearing, additional testimony was presented concerning the impact suffered by victims with one victim testifying there was “outrage and shock at the magnitude of the corruption.” Limas admitted to the court that his conduct was “not a mistake, it was intentional” and he had destroyed the public’s view of the local judiciary. Limas was further ordered to pay restitution of approximately $6,777,270.50 and will serve a term of three years of supervised release following completion of the prison sentence. An additional amount of $257,300 was ordered forfeited as proceeds derived from the offense.
“It critical to our court system that justice is administered fairly and without any undue influence,” said Magidson. “This case and the sentencing today serves as a reminder that this behavior will not be tolerated in the Southern District of Texas. We will continue our efforts against public corruption and will pursue prosecution in these matters when identified to us by our partner law enforcement agencies.”
Limas, 57, a life-long resident of Brownsville, practiced criminal and family law in south Texas during the late ‘80s and the ‘90s before assuming the judgeship of the 404th District in 2000. Limas served as judge for eight years - retiring in December 2008. Thereafter, he was associated with the law firm of Rosenthal & Watson, an Austin firm, as “of counsel.”
At the time of his guilty plea, Limas admitted his part in use of the office of judge of the 404th District Court as a criminal enterprise to enrich himself and others through extortion. Limas accepted money and other consideration from attorneys in civil cases pending in his court in return for favorable pre-trial rulings in certain cases, including a case involving a helicopter crash at South Padre Island in February 2008. Limas specifically admitted to receiving $8,000 in May 2008, a payment described as eight “golf balls,” for favorable rulings.
Evidence also showed Limas participated in a series of meetings with attorneys Marc Garrett Rosenthal and Jim Solis in the summer of 2008 during which they planned and negotiated the terms of Limas’ employment as an “of counsel” attorney with the firm. During those meetings, Rosenthal promised Limas an advance of at least $100,000 as well as a percentage of attorneys’ fees earned in the helicopter crash case in return for favorable rulings on the case. Limas’ employment arrangements were confirmed in calls on Aug. 28, 2008, between Limas and his wife and son. Limas was expecting to be “cut in” on 10% of the settlement/judgment of the helicopter crash case pending in his court and the $100,000 advance. On Dec. 31, 2008, Limas received a check for $50,000 payable from the Rosenthal & Watson Law Firm. On Jan. 2, 2009, Limas received a check for $50,000 from Solis.
In October 2009, the helicopter case settled for approximately $14 million and Limas received approximately $85,000 from the Rosenthal & Watson Law Firm approximately two months later.
To date, a total of eight defendants have entered guilty pleas to related violations in the FBI’s four-year public corruption investigation, including Jose Santiago “Jim” Solis, former Texas State Representative; local attorney Jose “Joe” Valle; former Cameron County District Attorney’s Office investigator Jaime Munivez; Jose Manuel “Meme” Longoria; Armando Pena and his wife, Karina. Three others - attorneys Ray Roman Marchan, Marc Garrett Rosenthal and former Cameron County District Attorney Armando Villalobos were found guilty of public corruption-related charges involving their association with Limas after separate jury trials. Marchan was previously sentenced to 42 months imprisonment, which was vacated upon his death. Solis was sentenced Aug. 2, 2013, to 47 months, while Rosenthal and Villalobos will be sentenced Sept. 23 and Oct. 15, 2013, respectively.
Limas was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation has been conducted by the FBI with the assistance of the Drug Enforcement Administration, Brownsville Police Departmentand Internal Revenue Service - Criminal Investigation. Southern District of Texas Assistant United States Attorneys (AUSA) Michael Wynne and Oscar Ponce are prosecuting this case. The cases against Villalobos and Rosenthal are being prosecuted under the direction of the Western District of Texas by AUSAs Wynne and Greg Surovic.
Federal Jury Convicts Truck Driver in Undocumented Person Transportation CaseRead the Press Release
LAREDO, Texas – Miguel A. Granadeno, of Carthage, Mo., has been convicted of conspiracy to transport and the transportation of undocumented persons, United States Attorney Kenneth Magidson announced today. The verdict was returned less than an hour ago following a three-day trial.
During trial, the jury heard testimony that on April 18, 2013, Granadeno was caught at the I-35 Border Patrol Checkpoint north of Laredo with six undocumented persons hidden in his tractor. Four were found stuffed inside a storage compartment under the bed in the sleeper area of the tractor, one was crunched in a small closet above a refrigerator and the last person was lying in a cavity the length of the tractor above the driver’s head.
The undocumented persons were illegally crossed into the United States outside of McAllen and taken to a house where a number of people were staying, according to evidence presented in court. On April 18, 2013, the six people were driven from the McAllen area to a Walmart in Laredo where Granadeno met them and hid them in various places throughout his tractor. He then drove to the checkpoint.
U.S. District Judge Diana Saldaña, who presided over the trial, will set sentencing at a later date. At that time, Granadeno faces up to 10 years imprisonment and a maximum fine of $250,000. Granadeno was taken into custody following the verdict where he will remain pending sentencing.
The matter was investigated by Homeland Security Investigations in conjunction with the U.S. Border Patrol. Assistant United States Attorneys Christopher S. Coker and Elizabeth R. Rabe prosecuted the case.
Woman Arrested for Voting Multiple Times in 2012 RunoffRead the Press Release
BROWNSVILLE, Texas – Sonia Leticia Solis, 54, has been charged with voting more than once in connection with the 2012 primary runoff election held in Cameron County on July 31, 2012, United States Attorney Kenneth Magidson announced today.
The indictment, returned under seal Aug. 13, 2013, was unsealed today following her arrest by federal authorities in Fort Worth. Solis, formerly of Brownsville, will make her initial appearance before U.S. Magistrate Judge Jeffrey L. Cureton in Fort Worth at 2:30 this afternoon and is expected to be ordered to Brownsville in the near future.
The indictment alleges Solis was a resident of Brownsville during the 2012 runoff election. At that time, she allegedly cast five votes by absentee ballot in the names of five different individuals.
If convicted, Solis faces a possible federal prison sentence of up to five years and could be ordered to pay a maximum $10,000 fine.
This case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Bill Hagen.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Fugitive and Furniture Store Owner Sent to Prison for Cocaine Trafficking and Money LaunderingRead the Press Release
CORPUS CHRISTI, Texas – Jose Francisco Serna, of Mission, has been handed a significant federal sentence following his convictions of conspiracy to launder monetary instruments and conspiracy to possess with the intent to distribute cocaine, United States Attorney Kenneth Magidson announced today. Serna pleaded guilty Nov. 19, 2012.
Serna was arrested in August 2012 after having been a fugitive in Mexico for several years. His conviction relates to his participation in a South Texas drug-trafficking and money laundering organization that used his furniture store as a business front to launder illegal drug proceeds.
Today, U.S. District Judge John D. Rainey, who accepted the guilty plea, handed Serna respective terms of 96 months on each count to be served concurrently for the drug and money laundering convictions. Serna was further ordered to pay a $5,000 fine on the money laundering count. Serna will also be required to serve a term of four years of supervised release following completion of the prison term.
Serna once owned and operated a retail furniture store in McAllen and began a drug venture on the side of his legitimate business with two of his associates in the furniture business. Serna later created Four Seasons Transport, a legitimate trucking company to transport secreted cocaine and currency between Mission and Atlanta, Ga. Cocaine was hidden in an axle of the tractor truck and was removed at “stash houses” in Lithonia and Savannah, Ga. Serna would then receive drug proceeds at his ranch in Mission. The drug proceeds were hidden in the same axle compartment of the tractor truck while being transported south. Serna used multiple bank accounts to hide the drug proceeds he had received, including his furniture business’ account.
At today’s hearing, Judge Rainey also entered a final order of forfeiture of Serna’s interest in a South Texas ranch, a piece of real property located in Hidalgo County valued at more than $300,000, which was used by Serna to conduct his drug business. At the ranch, Serna received cocaine load from Mexico for further distribution north to Georgia and South Carolina.
Serna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Organized Crime Drug Enforcement Task Force investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service--Criminal Investigation and the U.S. Marshals Service. This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Houston Man Gets Significant Sentence for Drug Trafficking Through Falfurrias CheckpointRead the Press Release
CORPUS CHRISTI, Texas - Luis Perez-Barocela, 38, has been ordered to prison for more than 24 years for his participation in a large drug trafficking conspiracy, United States Attorney Kenneth Magidson announced today. A federal jury in Corpus Christi found Perez-Barocela, of Houston, guilty after three days of trial and less than three hours of deliberation on Thursday, May 30, 2013.
Today, Senior U.S. District Judge John Rainey, who presided over the trial, handed Perez-Barocela a 292-month sentence for conspiracy to possess with the intent to distribute more than 1000 kilograms of marijuana from October 2011 until his arrest on Oct. 24, 2012. Perez-Barocela will also be required to serve a term of five years of supervised release following completion of the prison term.
Evidence at trial established that the organization moved large amounts of marijuana in tractor-trailers hauling produce through the Falfurrias Border Patrol checkpoint and on to other major cities within the United States. From October 2011 until April 2012, approximately 4,000 kilograms of marijuana was seized. Those seizure have, to date, resulted in the convictions of three tractor-trailer drivers, Jose Benitez, 46, of Houston, Ernesto Cabrera-Enriquez, 39, of Miami, Fla., Noe Galindo, 37, of Weslaco, as well as Oscar Quijano, 43, of Dallas.The government proved Perez-Barocela was responsible for recruiting drivers in the scheme. He and his co-defendants were also tasked with escorting the loads through the checkpoint while safely situated in other passenger vehicles and maintaining contact with the drivers by phone.
Drivers Benitez, Cabrera-Enriquez, Galindo and others provided testimony they were each recruited by Perez-Barocela and offered between $15,000 and $55,000 to drive approximately 700 pounds of marijuana through the checkpoint and on to various cities within the United States. However, they learned upon their arrest that they had actually been hauling between 1,200 and 2,800 pounds.
Agents with the Drug Enforcement Administration (DEA) and Homeland Security Investigations (HSI) testified as to photographs showing Perez-Barocela, his co-defendants and/or vehicles associated with the defendants passing through the checkpoint often within minutes of load vehicles. Additionally, the jury heard testimony regarding cellular telephone records that demonstrated contact between Perez-Barocela and the drivers in the days and weeks leading up to their arrest.
Perez-Barocela will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by DEA, HSI and Border Patrol. Assistant United States Attorney Jeffrey D. Preston is prosecuting the case.
14 More Army National Guard Recruiters and Soldiers Charged in Ongoing Bribery and Fraud InvestigationRead the Press Release
To Date, 25 Individuals Charged in San Antonio and Houston Areas
HOUSTON – Fourteen current and former recruiters and soldiers of the U.S. Army National Guard have been charged for engaging in a multi-year scheme to defraud the U.S. Army National Guard Bureau, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
The cases against all 14 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, 11 of whom have pleaded guilty.
According to court documents, 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 Army National Guard soldiers who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
In an indictment unsealed today in its entirety, Michael Rambaran, 50, of Pearland; and Edia Antoine, 27, Ernest A. Millien III, 49, and Christopher D. Renfro, 25, all of Houston, were charged with conspiracy, bribery, wire fraud and aggravated identity theft. According to court documents, between February 2008 and August 2011, Rambaran was a National Guard recruiter and Antoine, Millien and Renfro were recruiting assistants in G-RAP. Rambaran allegedly provided the names, addresses and Social Security numbers of potential soldiers to Antoine, Millien and Renfro so they could claim fraudulent recruiting referral bonus payments by falsely claiming they were responsible for referring those potential soldiers to join the military. The indictment alleges that Antoine, Millien and Renfro paid kickbacks to Rambaran by providing a portion of the fraudulent bonus payments.
In a separate indictment unsealed on Aug. 9, 2013, Zaunmine O. Duncan, 37, of Austin, was charged with conspiracy, bribery, wire fraud, aggravated identity theft and witness tampering. According to court documents, between February 2008 and August 2010, Duncan, an Army National Guard recruiter, allegedly provided the personal identifiers of potential soldiers to four co-conspirators, identified as Recruiting Assistants 1 through 4, who used the personal identifiers to claim fraudulent recruiting referral bonuses through their G-RAP accounts. According to the indictment, Recruiting Assistants 1 through 4 paid kickbacks to Duncan by providing a portion of the fraudulent proceeds. The indictment also alleges Duncan and Recruiting Assistant 1, without permission or lawful authority, used the identity of a potential soldier to set up a G-RAP account through which Duncan and Recruiting Assistant 1 received additional fraudulent bonus payments. The indictment also charges Duncan with witness tampering, alleging Duncan instructed a witness, identified in the indictment as Recruiting Assistant 1, to make certain false exculpatory statements to federal law enforcement officers.
In another related but separate indictment also unsealed on Aug. 9, 2013, Jammie T. Martin, 36, and Michelle H. Davis, 32, both of Katy; and Danielle V. Applin, 27, of Harker Heights, were charged with conspiracy, bribery, wire fraud and aggravated identity theft. According to the indictment, from February 2009 through April 2011, Martin served as an Army National Guard recruiter and Applin and Davis served as recruiting assistants with the G-RAP. According to court documents, Martin allegedly provided the personal identifiers of potential soldiers to Applin and Davis so they could claim fraudulent recruiting referral bonus payments by falsely claiming they were responsible for referring these potential soldiers to join the military. The indictment alleges Applin and Davis paid kickbacks to Martin by providing a portion of the fraudulent bonus payments.
In addition, in the last two weeks, Melanie D. Moraida, 33, of Pearland; Elisha M. Ceja, 26, of Barboursville, W.Va.; Kimberly N. Hartgraves, 28, of League City; Lashae C. Hawkins, 27, of San Antonio; and Annika S. Chambers, 27, and Vanessa Phillips, 35, both of Houston, were all charged in separate criminal informations with one count of conspiracy and one count of bribery.
A conviction for bribery carries as possible punishment a maximum penalty of 15 years in federal prison. Witness tampering and wire fraud, upon conviction, could each result in a maximum of 20 years imprisonment, while a conviction for the conspiracy charge carries a five-year maximum sentence. If convicted of aggravated identity theft, a defendant will also have to serve a mandatory penalty of two years in prison, which must be served consecutively to any other sentence imposed. All charges also carry a possible $250,000 maximum fine or twice the pecuniary gain or loss.
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. Assistant U.S. Attorney John Pearson and Trial Attorneys Edward J. Loya Jr., Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section are prosecuting.
A defendant is presumed innocent unless convicted through due process of law.Heroin and Methamphetamine Trafficking Group IndictedRead the Press Release
LAREDO, Texas – Eleven members of a heroin and methamphetamine trafficking group have been arrested throughout the Southern District of Texas and elsewhere for their involvement in a large-scale drug conspiracy, United States Attorney Kenneth Magidson announced today.
The indictment, returned under seal July 23, 2013, alleges the group was responsible for smuggling heroin and methamphetamine from Mexico into the United States at ports of entry from San Diego, Calif., to Brownsville. Authorities allegedly intercepted shipments of drugs totaling 131 kilograms of heroin and 31 kilograms of methamphetamine. The drugs were transported utilizing private vehicles and were seized at the ports of entry or border checkpoints, according to the indictment.
Arrested today were Luis Daniel Aguilar, 22, Eduardo Aguilar-Vera, 37, Juan Trevino, 23, and Jose Librado Sanchez-Guerra, 29, all of Laredo; Edgar Loera, 30, and Antonio De Jesus Mejia-Contreras, 23, both of Mira Loma, Calif.; Clementina Aguilar-Castillo, 29, and Ericka Pina, 37, both of Corpus Christi; Eduardo Segura, 22, of Tucson, Ariz.; Leticia Corona, 37, of Dallas; and Miguel Angel Vives-Macias, 34, of San Antonio. The indictment remains as to those charged but not as yet in custody. Some will or have already made their initial appearances in federal court in the jurisdiction where they were arrested. Those taken into custody in Laredo are expected to make their initial appearances tomorrow morning.
All defendants are charged with conspiracy to import and possession with intent to distribute controlled substances and face up to 10 years in federal prison and a possible $10 million fine, upon conviction. Aguilar, Loera, Aguilar-Vera and Trevino are also charged with conspiracy to launder monetary instruments. If convicted, they face a sentence of up to 20 years and a maximum $500,000 fine. The substantive counts of heroin and/or methamphetamine trafficking carry varying terms of federal imprisonment up to a possibility of life depending upon the amount of drugs involved.
The Organized Crime Drug Enforcement Task Force investigation was conducted by Homeland Security Investigations, Drug Enforcement Administration and the Texas Department of Public Safety. This case is being prosecuted by Assistant United States Attorney José Angel Moreno.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.16 People Sentenced to Lengthy Terms for Drug Trafficking and Money LaunderingRead the Press Release
LAREDO, Texas – Several members of a large scale drug trafficking and money laundering organization operating out of the Zapata area from approximately 2006 through 2011 have received significant federal prison sentences, United States Attorney Kenneth Magidson announced today.
The sentences were imposed in Laredo federal court by U.S. District Judge Diana Saldaña yesterday and Tuesday of this week.
The convictions and sentences were the result of a more than three-year investigation into a drug trafficking and money laundering organization based out of Zapata. The organization was led by Pedro Navarro Jr., 38, of Zapata, who received a sentence of 364 months in federal prison.
The others primarily worked for Navarro and were responsible for transporting drugs and/or large amounts of cash which represented the proceeds of drug sales for Navarro or helping others to do so. These 15 defendants, 14 of whom are residents of various places in the Zapata area, were sentenced to varying terms as outlined below.
Alex Navarro, 23: 131 months
Andres Quintero-Ortiz, 48: 127 months
Servando Guerrero Jr., 38: 174 months
Sandalio Ramos, 44: 224 months
Rene Davila, 31: 93 months
Leonel Rodriguez, 43: 240 months
Juan Luis Rivera, 31: 131 months
Jorge Grajeda Jr., 30: 46 months
Juan Antonio Valadez Sr., 55: 63 months
Jose Luis Gonzalez-Chapa, 24: 93 months
Judith Zamora, 27: 93 months
Claudia Medrano, 28: 108 months
Leonides Navarro, 23: 87 months
Maria Micaela Berrones, 25: 58 months
James Clinton Crabtree (of Immokalee, Fla.), 30: 33 monthsThe members of these conspiracies would primarily transport drugs which had been brought into the United States from Mexico from Zapata to other parts of the United States. The drugs would typically be smuggled into the United States in small boats which crossed Falcon Lake at night from Mexico into Zapata. The boats then docked at a house maintained by Navarro on the shores of Falcon Lake where the drugs were unloaded and stored before being transported. Navarro and his co-conspirators subsequently transported these drugs from Zapata to other parts of Texas and beyond, to include the South Florida area. The members of the conspiracy also would then bring the proceeds from the sales of these drugs back to the Zapata area and ultimately into Mexico in order to promote the continuation of the drug trafficking activities. This investigation ultimately led to the conviction of Navarro and the others as well as the seizure of more than five kilograms of methamphetamine and 6,000 kilograms of marijuana.
Over the course of the conspiracy, evidence further showed the members of conspiracy were also responsible for generating proceeds from that activity in the amount of at least $18 million.
This case is the result of an investigation conducted by the Drug Enforcement Administration with assistance from Internal Revenue Service - Criminal Investigation, Border Patrol, Homeland Security Investigations, Texas Department of Public Safety and Webb County Sheriff’s Department. Assistant U.S. Attorney Arthur R. Jones is prosecuting.
Laredo Resident Sentenced in Child Pornography CaseRead the Press Release
LAREDO, Texas – Robert Allen Montgomery, 46, has been ordered to federal prison following his convictions of receiving and possessing child pornography, United States Attorney Kenneth Magidson announced today. Montgomery was convicted on both counts as charged after a bench trial on April 19, 2013.
Today, Senior U.S. District Judge George P. Kazen handed Montgomery a sentence of 96 months in federal prison. Additional information was presented, including statements from the mother of one of the identified victims. In handing down the sentence, Judge Kazen took into consideration the number of images, the youth of the victims depicted in the images and the type of abuses depicted in the images found on Montgomery’s Blackberry. Judge Kazen further noted Montgomery needed drug treatment and mental health help while incarcerated and after being released from federal custody. Montgomery was further ordered serve 15 years of supervised release following completion of his prison term, during which time was ordered not to work with, live near or have any direct contact with any minor without prior approval by the U.S. Probation Office. He was also ordered not to access the Internet or any sexually explicit materials involving minors. He will also be ordered to register as a sex offender.
On May 3, 2012, the Laredo Police Department (LPD) conducted a traffic stop on Montgomery, at which time officers discovered a small amount of cocaine and arrested him for possession of controlled substance. When the officers searched Montgomery’s phone after his arrest, they found images of child pornography. A total of approximately 180 images of child pornography were eventually found on the phone.
Montgomery 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 Homeland Security Investigations and LPD and prosecuted by Assistant U.S. Attorney Sonah Lee.
Houston Man Handed Significant Federal Sentence for Cocaine TraffickingRead the Press Release
HOUSTON - Michael Washington, 38, of Houston, has been handed a sentence of 151 months for conspiracy to possess with the intent to distribute and possession with intent to distribute 8.9 kilograms of cocaine, United States Attorney Kenneth Magidson announced today.
On Tuesday, Oct. 11, 2011, Washington was convicted by a jury’s verdict of conspiracy to possess with the intent to distribute cocaine and aiding and abetting the possession with the intent to distribute cocaine. At the hearing today, U.S. District Judge Gray Miller sentenced Washington to 151 months on both counts of conviction to run concurrently. Washington was further ordered to serve five years of supervised release following completion of his prison term.
During the four-day trial, the jury heard testimony which proved that on June 10-11, 2010, Juan Manzanares supplied cocaine to other co-conspirators Roberto Medrano and Alberto Aguirre who subsequently sold the cocaine to Washington. After receiving one kilogram on June 10, Washington made arrangements to purchase five additional kilograms of cocaine the following day.
On June 11, Manzanares, providing the cocaine, rode with Medrano and Aguirre to Washington’s residence on the 9600 block of Kings Valley in Houston to deliver the cocaine. Unbeknownst to all involved, agents with the Drug Enforcement Administration (DEA) had received information about a possible drug transaction and were monitoring the area.
Surveillance units had established a visual on the house and agents witnessed Aguirre exit the vehicle and enter Washington’s residence. Inside, Washington received the cocaine from Aguirre and paid him approximately $113,000. Aguirre departed the residence carrying a black bag with the money, placed it into the vehicle and left. Surveillance then followed all three vehicles.
Officials conducted a traffic stop on the Chevy, at which time they observed the black bag in the back seat with bundles of U.S. currency exposed. The amount of money recovered from the bag was approximately $113,899.
The co-defendants in the case were sentenced to terms ranging from 60-151 months in federal prison.
This matter was investigated by the DEA in conjunction with the Pasadena Police Department. Assistant United States Attorneys Stuart A. Burns and Bertram Isaacs prosecuted the case.
Alien Trafficker Gets Enhanced Sentence for Sexual AssaultRead the Press Release
LAREDO, Texas – Juan Zavala Gutierrez, 22, a resident of Mexico, has been sentenced to five years in federal prison for transporting undocumented aliens for private financial gain, United States Attorney Kenneth Magidson announced today. Gutierrez pleaded guilty June 10, 2013.
In April 2013, Gutierrez, himself an illegal alien, guided a group of 11 illegal aliens from Mexico, crossing through the Rio Grande River into the United States. All the illegal aliens hid in the brush and Gutierrez sexually assaulted them. He ordered the aliens to undress and forced himself on the females, taking advantage of their vulnerability. Gutierrez was admittedly intoxicated and under the influence of drugs.
Today, U.S. District Judge Marina Garcia Marmolejo handed Gutierrez a sentence of 60 months in federal prison. In handing down the sentence, the court noted that alien smugglers cannot prey on and violate the transported women. Judge Marmolejo, in exercising an upward departure from the U.S. Sentencing guidelines, enhanced the defendant’s punishment to reflect his crude actions.
The case was investigated by the United States Border Patrol and Homeland Service Investigations and prosecuted by Assistant U.S. Attorney Sanjeev Bhasker.Father and Son Felons Sent to Prison for Ammunition and Drug ChargesRead the Press Release
LAREDO, Texas – Rolando Rubio and his father, Antonio Rubio Jr., both of Laredo, have been ordered to prison for their respective pleas to cocaine trafficking and unlawful possession of ammunition, United States Attorney Kenneth Magidson announced today. Both entered guilty pleas in separate indictments on Oct. 15, 2012.
Today, U.S. District Judge George P. Kazen sentenced Rolando Rubio, 33, to a term of 235 months in federal prison for possessing with the intent to distribute 6.1 kilograms of cocaine. At the hearing, additional information was produced including that Rubio called his mother and other family members while he was in federal detention to contact his drug buyers for additional drug sales or for money owed for prior drug sales. Another matter presented at the hearing was Rubio’s alleged membership in the Mexican Mafia prison gang. In handing down the sentence, Judge Kazen noted he was taking into account the totality of Rubio’s criminal lifestyle, including Rubio’s bragging that he was "immune from prosecution because of his last name." The comment was a reference to his defense attorney, who was Webb County District Attorney from 1989 to 2008. "The time is NOW to pay the price," Judge Kazen told Rubio upon handing him the sentence. He was further ordered to serve five years of supervised release following completion of the prison term.Earlier this year, visiting U.S. District Judge Ivan Lemelle ordered Antonio Rubio, 68, to serve 30 months in federal prison to be followed by a three-year-term of supervised release.
Rolando Rubio was arrested by federal authorities on Aug. 8, 2012, for unlawful possession of a firearm and ammunition. On the evening of his arrest, and while at the Webb County Jail, Rubio telephoned family members and informed them he had hidden cocaine in his parent’s home. Agents conducted a search which resulted in the discovery of 6.1 kilograms of cocaine hidden in a back room of his parent’s home, some of which had already been pre-packaged and sorted according to weight by Rubio for street level distribution.
Antonio Rubio Jr. entered a guilty plea to unlawful possession of ammunition. He had been arrested following an investigation into his illegal actions related to drug trafficking and firearm offenses. Upon his arrest, a firearm and several rounds of ammunition were found in his home.
Both men have remained in custody since their arrests.
The investigation leading to the charges in these cases was conducted by the Laredo Police Department Narcotics Unit, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Marshals Service and the Webb County District Attorney’s Office. Assistant United States Attorney Homero Ramirez prosecuted the cases.Two Arrested for Smuggling Counterfeit ViagraRead the Press Release
HOUSTON – A federal indictment has been unsealed charging two men with conspiring to smuggle/traffic in counterfeit and misbranded medicine, specifically Viagra, United States Attorney Kenneth Magidson announced today along with Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.The 11-count indictment, was unsealed upon the arrest today of Jamal Khattab, 49, of Katy, and Fayez Al-Jabri, 45, of Chicago, Ill. Khattab will appear before U.S. Magistrate Judge Nancy Johnson in Houston tomorrow, while Al-Jabri made his appearance before U.S. Magistrate Judge Arlander Keys in Chicago, at which time he was ordered into custody pending an identity and detention hearing for Thursday morning.
The indictment charges Khattab with one count of conspiracy, one count of smuggling goods into the United States, two counts of trafficking in counterfeit goods, two counts of trafficking in misbranded drugs and two counts of trafficking in counterfeit drugs. Al-Jabri is charged with one count of trafficking in counterfeit goods, one count of trafficking in misbranded drugs and one count of trafficking in counterfeit drugs.
According to the indictment, from June 2010 through March 2012, the defendants conspired to and smuggled counterfeit Viagra from China into the U.S. The counterfeit Viagra would then allegedly be shipped either to Chicago or Houston in bulk for later distribution in smaller quantities.
According to the indictment, law enforcement initially became aware of the counterfeit Viagra smuggling in July 2010. At that time, Khattab was identified as an intended recipient of a package of counterfeit Viagra shipped from China to Houston which was intercepted by law enforcement agents in San Francisco. Agents with Homeland Security Investigations (HSI) and Food and Drug Administration - Office of Criminal Investigations (FDA-OCI) were notified of the shipment and commenced an investigation.
The indictment further alleges that from January through September 2011, Khattab and Al-Jabri delivered approximately 17,000 counterfeit and misbranded Viagra tablets to an undercover agent who successfully infiltrated the counterfeit pharmaceutical trafficking organization.
Both men face up to five years for the conspiracy, upon conviction, as well as a $250,000 fine. Trafficking in misbranding drugs and counterfeit drugs carries as possible punishment up to three years in prison and a $10,000 fine, while trafficking in counterfeit goods could result in a possible maximum sentence of 10 years in federal prison and another possible $250,000 fine. Finally, if convicted of smuggling goods into the U.S., Khattab could be sentenced to up to 20 years in prison and face a possible maximum fine of $2.5 million.
This matter was investigated by HSI, FDA-OCI, Department of State - Diplomatic Security Service, Houston Police Department and Chicago Police Department – Intelligence Section of the Organized Crime Bureau. The case is being prosecuted by Assistant United States Attorney Kebharu Smith and Senior Counsel John Zacharia of the Department of Justice’s Criminal Division’s Computer Crime and Intellectual Property Section.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Texas Businessman Agrees to Settle False Claims Allegations Involving the E-rate ProgramRead the Press Release
WASHINGTON – Larry Lehmann of Giddings, Texas has agreed to pay $400,000 to settle allegations that he violated the False Claims Act in connection with the Federal Communications Commission’s E-rate Program, the Department of Justice announced today. The E-rate Program, created by Congress in the Telecommunications Act of 1996, subsidizes eligible equipment and services to make Internet access and internal networking more affordable for public schools and libraries. The Houston Independent School District (HISD) was one of the applicants that successfully sought and received E-rate subsidies from 2004 through 2006.
“The E-rate Program provides vital support for our nation’s students and schools,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the Department of Justice. “We are committed to protecting the integrity of this important program, which helps our children connect to the digital world.”
“Our office is committed to protecting the integrity of government initiatives,” said U.S. Attorney Kenneth Magidson. “We will continue to work closely with the Department in cases such as this one to ensure the E-rate and other federal programs are free from fraudulent and deceitful claims.”
Lehmann functioned as the CEO and managing partner of Acclaim Professional Services (Acclaim), which partnered with other companies to provide E-rate funded equipment and services to HISD during this period. The United States contended that, in violation of E-rate competitive bidding requirements and HISD procurement rules, Lehmann provided gifts and loans to HISD employees, including tickets to sporting events and two loans totaling $66,750 to an HISD employee who was involved in the procurement and administration of HISD’s E-rate projects.
The United States also alleged that Lehmann helped devise a scheme in which HISD outsourced some of its employees to Acclaim, which allowed them to continue to work for HISD while passing the cost on to the E-rate Program. The United States further alleged that, with Lehmann’s approval, Acclaim hid the cost of these employees in its E-rate Program invoices by rolling them into the cost of eligible goods and services.
The settlement with Lehmann is part of a broader investigation by the United States of E-rate funding requests submitted by HISD and the Dallas Independent School District (DISD). The government previously recovered $16.25 million from Hewlett-Packard, $850,000 from HISD, and $750,000 from DISD. The government’s investigation was initiated, in part, by a qui tam or whistleblower lawsuit filed under the False Claims Act by Dave Richardson and Dave Gillis, who investigated allegations of improprieties based on Richardson’s experience bidding for contracts at HISD and DISD. The False Claims Act authorizes private parties to file suit for false claims on behalf of the United States and share in the government’s recovery. The United States intervened in Richardson and Gillis’ lawsuit, and added Lehmann as a defendant.
“E-rate is one of the FCC’s biggest success stories, helping connect nearly every U.S. library and school to the Internet,” said Julie Veach, Chief of the FCC Wireline Competition Bureau. “We take any abuse of our rules seriously and thank the Department of Justice for their assistance in protecting the integrity of the E-rate Program for students, teachers, and libraries across the country. Today’s action is a signal to those interested in profiting at the expense of our nation’s schools and libraries: fraud doesn’t pay.”
This case was handled by the U.S. Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Southern District of Texas, and the FCC’s Office of the Inspector General and Office of the General Counsel.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against Lehmann is captioned United States ex rel. Dave Richardson and Dave Gillis v. Larry Lehmann, Civil Action No. 4:05-cv-3836 (S.D. Tex.).
Laredoan Sent to Prison for Possessing Child PornographyOrdered to Pay More Than $1 Million in RestitutionRead the Press Release
LAREDO, Texas – Luis Alberto Alcala, 25, of Laredo, has been ordered to federal prison for nearly eight years following his conviction of possessing with intent to view visual depictions of minors engaged in sexually explicit conduct, United States Attorney Kenneth Magidson announced today. He pleaded guilty Aug. 15, 2012.
Today, the government presented additional evidence including statements from one of the identified victims and members of her family. U.S. District Judge George P. Kazen took into consideration the amount of the images, the ages of the victims depicted therein and the types of child pornographic images and videos that were found on the Alcala’s computer. He then sentenced him to 90 months in federal prison. In handing down the sentence, Judge Kazen stated Alcala needed mental health treatment while in prison and when he was released in order to address his propensity to possibly re-offend. Judge Kazen also ordered Alcala to register as a sex offender. Alcala was further ordered to pay restitution in the amount of $950,000 to a known victim fund and another $150,000 to an identified victim. He will also be required to serve a term of 30 years of supervised release following completion of his prison sentence, during which Alcala is ordered not to work with, live near or have any direct contact with any minor without prior approval by the U.S. Probation Office. In addition, Alcala is ordered to not subscribe to and online service provider or use computer software for such purpose.
At the time of his guilty plea, Alcala admitted to downloading from child pornography sites and viewing pictures and videos of girls under the age of 18 engaging in sexually explicit conduct. Several of the images were identified as known victims and indexed in the National Center for Missing and Exploited Children.
The case arose from an Homeland Security Investigations (HSI) and Laredo Police Department (LPD) investigation that began in June 2008 after a complaint of the theft of a debit/credit card. The card was used to purchase a computer at Wal-Mart along with other items that were not authorized by the owner of the debit/credit card. Further investigation by LPD led to Alcala who admitted to detectives that he had used the card to purchase the laptop computer that was found at his apartment. A search of the computer by LPD showed that the computer hard drive contained numerous visual depictions of minors engaged in sexually explicit acts, at which time LPD referred this part of the investigation to HSI.
HSI agents conducted a forensic exam of the computer’s hard drive, which revealed 194 photographic images and 20 movies of minors engaged in sexually explicit conduct. Alcala admitted to LPD investigators that he had downloaded the images himself because he was curious.
Alcala will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI and LPD investigated with assistance of the Texas Department of Criminal Justice.
This case, prosecuted by Assistant United States Attorney Roberto F. Ramirez, 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."
Smoke Shop Owners Convicted of Structuring Financial TransactionsRead the Press Release
CORPUS CHRISTI, Texas – The husband and wife owners of Mr. Nice Guys Smoke Shop have entered pleas of guilty as a result of the efforts of a multi-agency investigation, United States Attorney Kenneth Magidson announced today. Leroy Mitchan Jr., 33, and Kimberly Davis, 27, both of Corpus Christi, pleaded guilty just a short time ago to structuring financial transactions as charged in a superseding indictment filed June 12, 2013.
Mitchan and Davis were arrested in May 2013 on charges relating to their participation in a conspiracy to structure more than $100,000 in cash deposit transactions over a 12-month period with a domestic financial institution in order to avoid the legal reporting requirements of the bank.
Their arrests came as a result of an investigation in reference to the sale of synthetic marijuana. Mitchan and Davis also own another smoke shop located at 5433 S. Staples St. in Corpus Christi as well as a used car dealership located at 5757 Everhart Rd. The factual summary as presented in court indicated that from February 2012 through January 2013, officers with the Corpus Christi Police Department (CCPD) seized more than 40.93 grams of synthetic marijuana during numerous undercover purchases from both of the smoke shops. On Feb. 1, 2013, CCPD executed state search warrants at the shops and seized a total of 1.5 kilograms of synthetic marijuana as well as various smoking paraphernalia such as pipes, bongs, glassware, grinders and scales. Also seized were detailed drug ledgers and price lists relating to the sale of synthetic marijuana along with documents guiding employees on the proper coded vocabulary to use when describing the illegal items being sold to customers.
The Drug Enforcement Administration (DEA) learned Mitchan and Davis had recently purchased three real estate properties in Corpus Christi and were making payments on these properties with large cash transactions. A preliminary review of bank accounts revealed several cash deposits under $10,000. Internal Revenue Service – Criminal Investigation (IRS-CI) then initiated the financial investigation.
The Bank Secrecy Act of 1970 (BSA) requires financial institutions to file reports with the Treasury Department of cash transactions exceeding $10,000.
As part of the plea, Davis admitted she conducted three separate deposits in one morning at Members First Credit Union. She first deposited $9,000 in the drive-thru at 7:39 a.m., then drove away and immediately re-entered the drive-thru lane and conducted a second cash deposit of $9,000 at 8:17 a.m. She drove away again but returned and conducted a third cash deposit of $8,801 at 9:16 a.m. In another instance, she conducted two separate deposits right after the other – the first in the lobby of the bank and the another in the drive-thru lane approximately 30 minutes later. The total amount for all five deposits was $44,101. All of these deposits did not exceed the $10,000 currency transaction filing requirement for financial institutions and were made in an attempt to avoid the reporting requirements.
Mitchan admitted he worked with a local real estate agent and provided him with large amounts of cash. Mitchan told him to deposit it into his personal bank account and later withdraw the money in the form of cashier’s checks or via Moneygram to pay for property he was purchasing. The total amount structured at the direction of Mitchan was approximately $461,000. Mitchan directed him and others to structure currency transactions to avoid the threshold reporting requirement and had even asked about the success of structuring the money without having any of the bank tellers ask any questions.
Mitchan faces up to 10 years imprisonment and a fine up to $500,000, while Davis faces up to five years and a possible 250,000 fine. Sentencing is set for Nov. 18, 2013. Both were permitted to remain on bond pending that hearing.
Both defendants have also agreed to the criminal forfeiture of three pieces of real property located in Nueces County, valued at approximately $1,200,000, approximately $396,000 in cash as well as 42 vehicles valued at approximately $409,000.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by IRS-CI, DEA and CCPD. The case is being prosecuted by Assistant Unites States Attorneys Hugo R. Martinez and Lance A. Watt.
Six Now Convicted in Alien Smuggling ConspiracyRead the Press Release
HOUSTON – With the guilty plea of Mexican national Francisco Chao-Martinez, 31, six people have now been convicted in relation to a conspiracy to transport aliens illegally present in the country, United States Attorney Kenneth Magidson announced today. Chao-Martinez was among six originally charged in an ongoing conspiracy to enrich themselves by harboring and transporting smuggled aliens. Juan Carlos Solis-Sanchez, 31, of Mexico, Daniel Sanchez-Cabarello, 31, of El Salvador, and Edgar Carranza-Espinal, 36, and Carlos Benegas-Benetiz, 36, both of Honduras, previously entered guilty pleas to conspiracy to transport aliens. A sixth defendant, Fredis Sanchez-Martinez, 22, of Honduras, was convicted of conspiracy to harbor aliens illegal present in the United States.
Charges in the case stem from an investigation that began in January 2013 after federal agents received information that Chao-Martinez was involved in organizing temporary housing for aliens smuggled to Houston. He then coordinated their transportation by means of motor vehicle to different locations throughout the United States.
In June 2013, Chao-Martinez, Solis-Sanchez and Sanchez-Caballero were arrested in connection with arranging the transportation of 14 aliens illegally present in the United States. Later, agents executed a search warrant at a residence in Houston which was being used by Chao-Martinez and his conspirators to stash aliens awaiting transportation. Agents encountered 10 additional aliens illegally present in the United States. Agents also encountered Sanchez-Martinez, Cararranza-Espinal and Benegas-Benetiz, all of whom were determined to be employees of Chao-Martinez involved in the alien smuggling conspiracy.
U.S. District Judge Sim Lake has set sentencing for Chao-Martinez on Oct. 24, 2013, while the others will be sentenced Oct. 22, 2013. All face up to 10 years imprisonment and a possible $250,000 fine.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations. Assistant United States Attorney Casey N. MacDonald is prosecuting the case.
Houston Man Ordered to Prison…Again for Second Wire Fraud SchemeRead the Press Release
HOUSTON - Houstonian Nathaniel Chilo, aka Nathaniel O’Neil, 23, now convicted in two separate debt relief scams, has been sentenced to prison again, United States Attorney Kenneth Magidson announced today. Chilo entered a plea of guilty to wire fraud in relation to this case Thursday, Dec. 13, 2012.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty plea, handed Chilo a sentence of 51 months in federal prison to be immediately followed by a term of three years of supervised release.
Chilo operated debt relief businesses in the Houston area under several different names including, but not limited to, Universal Restoration and C & N Recovery. Both Chilo and co-defendant Savannah Rae Williams, 25, also of Houston, have admitted they fraudulently represented that settlements has been arranged for an individual in Georgia, but then used that money for their own benefit.
Chilo was first indicted in a separate scheme perpetrated by him and his father, Jeffery Wayne O’Neil, 55, of Houston. Chilo was arrested in late August 2011 and released on Sept. 14, 2011, pending further criminal proceedings. Among his conditions of release were that he not commit any other criminal offenses nor have a job in credit repair, credit counseling, credit accounts, credit history and credit restoration.
On or about Sept. 16, 2011, a letter was sent to an individual in Georgia that falsely representing a settlement had been reached in the amount of $32,541.56 with one of the person’s creditors. As a result, the individual’s wife then wired monies to cover the settlement, but neither Chilo nor Williams ever paid the creditor.
A second email was sent the next month which indicated a settlement on another account in the amount of $35,409.18. That settlement was also fraudulent, but thinking it was a legitimate, the victim again wired the monies.
Williams and Chilo never arranged the settlements and never paid the creditors, but used the monies for their own benefit. They have both admitted they fraudulently received $67,950.74.
Williams pleaded guilty to her role in the scheme in March 2013 and was also sentenced today to three years of probation and ordered to pay $40,894.47 in restitution.
Chilo and his father were sentenced to respective terms of 70 and 78 months in prison in the other case by U.S. District Judge Ewing Werlein Jr. on July 12, 2013. The sentence imposed upon Chilo today will be served concurrently to the previous term for a total of 70 months in federal prison. Chilo will have to pay a total of $130,176.09 in restitution for both cases.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.
Former Texas Representative “Jim” Solis Gets 47 Months in Prison for Limas Extortion SchemeRead the Press Release
BROWNSVILLE, Texas – Former Texas representative Jose Santiago “Jim” Solis has been ordered to prison following his conviction of aiding and abetting the extortion by former state district judge Abel Corral Limas, United States Attorney Kenneth Magidson announced today. Solis pleaded guilty April 29, 2011.
Today, U.S. District Judge Andrew Hanen, who accepted the guilty plea, handed Solis a total sentence of 47 months in federal prison. At the hearing, additional testimony was presented including the impact suffered by victims as well as Solis’ family and friends. Judge Hanen took into consideration the testimony of witnesses before pronouncing the sentence and stated Solis “betrayed the public trust and violated the oath to uphold the laws.” Solis was further ordered to pay restitution of approximately $119,000 and will serve a term of three years of supervised release following completion of the prison sentence. An additional amount of $250,000 was ordered forfeited as proceeds derived from the offense.
Solis, 47, a life-long resident of Harlingen, has practiced law in south Texas for many years, focusing primarily in personal injury cases. Solis served as a member of the Texas House of Representatives, representing District 38, for seven terms - retiring from the Legislature in 2007.
At the time of his guilty plea, Solis admitted his part in former Judge Limas’ use of the office of judge of the 404th District Court as a criminal enterprise to enrich himself and others, including Solis, through extortion. Limas accepted money and other consideration from attorneys in civil cases pending in his court, including Solis, in return for favorable pre-trial rulings in certain cases, including a case involving a helicopter crash at South Padre Island in February 2008. Solis specifically admitted to paying Limas $8,000 in May 2008, a payment they described as eight “golf balls,” for favorable rulings.
Evidence also showed Solis participated in a series of meetings with attorney Marc Garrett Rosenthal and Limas in the summer of 2008 during which they planned and negotiated the terms of Limas’ employment as an “of counsel” attorney with the firm. During those meetings, Rosenthal promised Limas an advance of at least $100,000 as well as a percentage of attorneys’ fees earned in the helicopter crash case. Limas’ employment arrangements were confirmed in calls on Aug. 28, 2008, between Limas and his wife and son. The intercepted calls indicated Limas was expecting to be “cut in” on 10% of the settlement/judgment of the helicopter crash case pending in his court and the $100,000 advance. On Dec. 31, 2008, Limas received a check for $50,000 payable from the Rosenthal & Watson Law Firm. On Jan. 2, 2009, Limas received a check for $50,000 from Solis.
In October 2009, the helicopter case settled for approximately $14 million and Limas received approximately $85,000 from the Rosenthal & Watson Law Firm approximately two months later.
To date, a total of eight defendants have entered guilty pleas to related violations in the FBI’s four-year public corruption investigation, including Limas, former state district judge of the 404th District Court; local attorney Jose “Joe” Valle; former Cameron County District Attorney’s Office investigator Jaime Munivez; Jose Manuel “Meme” Longoria; Armando Pena and his wife, Karina. Three others - attorneys Ray Roman Marchan, Marc Garrett Rosenthal and former Cameron County District Attorney Armando Villalobos were found guilty of public corruption-related charges involving their association with Limas after separate jury trials. Marchan was previously sentenced to 42 months imprisonment which was vacated upon his death. Rosenthal and Villalobos will be sentenced Sept. 23 and Oct. 15, 2013, respectively.
Solis was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation has been conducted by the FBI with the assistance of the Drug Enforcement Administration and Brownsville Police Department. Southern District of Texas Assistant United States Attorneys (AUSA) Michael Wynne and Oscar Ponce are prosecuting this case. The cases against Villalobos, Rosenthal and Lucio are being prosecuted under the direction of the Western District of Texas by AUSAs Wynne and Greg Surovic.
Three Ordered into Custody on Charges of Selling Drugs in School Zone and Other FeloniesRead the Press Release
LAREDO, Texas – A 16-count indictment has been returned against three Laredo men detailing firearms and multiple methamphetamine trafficking charges, some allegedly occurring within school zones, United States Attorney Kenneth Magidson announced today.
The indictment alleges that from on or about May 24, 2013, to June 28, 2013, Luis Macias-Molinas, 31, and Ricardo Rosas Jr., 26, did knowingly conspire with each other to possess with intent to distribute more than 500 grams of a mixture containing methamphetamine. Also named in the indictment but not charged in the conspiracy is Manuel Aguilar, aka Chino, 24.
The indictment was returned July 23, 2013, and unsealed upon Aguilar’s arrest last Friday. He made his initial appearance before U.S. Magistrate Judge Guillermo R. Garcia Monday, July 29, at which time he was ordered into custody pending a detention hearing to be held this morning. At the hearing today, additional information was provided including Aguilar’s prior criminal record, after which Judge Garcia ordered him to remain in custody pending further criminal proceedings.
Macias-Molinas and Rosas have been in custody on related charges. Rosas also appeared today, at which time he was also ordered to remain in custody. Macias-Molinas waived his appearance and will remain in custody.
Two counts of the indictment include allegations that on or about June 28, 2013, Macias-Molinas and Rojas possessed with intent to distribute 50 grams and another 500 grams and more of a mixture containing methamphetamine. The charges also include allegations that Macias-Molinas possessed with the intent to distribute 50 grams of methamphetamine on June 25, 2013.
These convictions carry varying terms of possible imprisonment, ranging from five years up to life in federal prison.
Moreover, on or about June 14, 2013, Macias-Molinas and Rojas did knowingly distribute 50 grams of methamphetamine within 1,000 feet of Mary Help of Christian School, a private school, according to the allegations. On two additional occasions, Macias-Molinas allegedly distributed methamphetamine in a school zone – once within 1000 feet of Clark Elementary School, a public elementary school, and another again near Mary Help of Christian School.
For the conspiracy charge, Macias-Molinas and Rosas face up to life in prison, if convicted. For possessing with the intent to distribute methamphetamine within a school zone, Macias will face a minimum of 10 years and up to life in prison for each of the three counts, while Rosas will serve a minimum of five and up to 80 years in federal prison, upon conviction.
On or about June 28, 2013, according to the indictment, Macias-Molinas also knowingly possessed in and affecting commerce, six Bushmaster .223 caliber rifles and a Smith and Wesson .357 caliber revolver. As a convicted felon, Macias-Molinas is prohibited by federal law of possessing a firearm. If convicted, he faces up to 10 years in prison for each of the seven firearms counts as charged in the indictment.
On that same date, Aguilar allegedly possessed a Taurus .380 caliber Automatic Colt Pistol. As a convicted felon, he is also prohibited from doing so and will also face up to 10 years in federal prison upon conviction. The indictment further charges Aguilar with one count of possessing with intent to distribute five grams or less of cocaine for which he faces up to 20 years and a possible $1 million fine, upon conviction.
The case is being investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department. Assistant United States Attorneys Sanjeev Bhasker and Homero Ramirez are prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Three Charged with Various Drug Trafficking ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – A three-count indictment alleging cocaine and heroin trafficking conspiracies has been partially unsealed following the arrest of a Corpus Christi resident, United States Attorney Kenneth Magidson announced today.
The indictment, returned July 25, 2013, was partially unsealed yesterday following the arrest of Corpus Christi resident Jose Manuel Zuniga aka “Slick,” 33. Zuniga made an initial appearance before U.S. Magistrate Judge B. Janice Ellington in Corpus Christi late yesterday, at which time he was ordered detained pending further criminal proceedings. He is set for an arraignment and detention hearing Friday, Aug. 2, 2013, at 9:00 a.m. Also charged but already in custody on related charges in Houston are Ruben Esparza aka “Popo,” 35, and Ernesto Villarreal aka “Crash,” 36, of Robstown. They are expected to make their appearance before a U.S. magistrate judge in Houston. The indictment remains sealed as to those charged but not as yet in custody.
Zuniga is charged with Esparza and Villarreal with possessing with intent to distribute 28 grams of heroin. If convicted, they each face up to 20 years imprisonment as well as $1 million fine.
Esparza and Villarreal also face not less than 10 years and a maximum of life in federal prison as well as a $10 million fine for conspiracy to possess with intent to distribute more than a kilogram of heroin in 2011 and 2012. Both are further charged with conspiring to possess with intent to distribute less than 500 grams of cocaine in 2011. The punishment range for that conviction is at least five and up to 40 years imprisonment as well as a possible $5 million fine.
The indictment also provides notice of the government to seek a money judgment against Esparza in the amount of $126,000, which is alleged to be proceeds from his heroin sales.
This case was investigated through a joint effort by the FBI, Drug Enforcement Administration, Corpus Christi Police Department and Texas Department of Public Safety.
The case is being prosecuted by Assistant United States Attorney Michael Hess.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.South Carolina Man Enters Plea to Introducing Stem Cells into Interstate CommerceRead the Press Release
HOUSTON – Vincent Dammai, 42, of Pleasant, S.C., has entered a guilty plea to causing the introduction of stem cells into interstate commerce without the approval of the Food and Drug Administration (FDA), United States Attorney Kenneth Magidson announced today.
Dammai was a former assistant professor of Pathology and Laboratory Medicine at the Medical University of South Carolina. The superseding criminal information charged him with introducing stem cells processed at the university into interstate commerce without FDA approval. Dammai entered the guilty plea yesterday before U.S. Magistrate Judge Frances Stacey.
The charges against Dammai was the result of an investigation by the FDA and the FBI into the manufacture, distribution, sale and use of stem cells in the treatment of human autoimmune diseases. Currently, the FDA has not approved the use of stem cells for the treatment of diseases such as amyotrophic lateral sclerosis (ALS), multiple sclerosis (MS) and Parkinson’s disease.
During the investigation, agents discovered that co-conspirator Francisco Morales falsely represented to the public that he was a physician licensed to practice medicine in the United States and had experience in performing stem cell procedures for the treatment of ALS, MS and Parkinson’s. Agents further discovered Morales obtained stem cells from Fredda Branyon, the owner of a company called Global Laboratories located in Scottsdale, Ariz.
While trying to determine the source of the stem cells sold to Morales by Global Laboratories, agents discovered that Dammai was processing stem cells at the Medical University in South Carolina without university or FDA approval.
During the plea, Dammai admitted that beginning in 2006 while employed with the university, he used university facilities to harvest and process stem cells for a company called Caledonia Consulting located in South Carolina. He further admitted he harvested stem cells for Caledonia from March 2006 through December 2008 and was paid approximately $161,625. Dammai acknowledged he was only authorized to conduct research for kidney cancer and was not permitted to harvest or process stem cells.
Dammai also admitted that in late December 2008, Caledonia Consulting was sold to Branyon and that Caledonia was then dissolved. Branyon then established a company named Global Laboratories. Dammai admitted that in May 2009 he entered into a consulting agreement with Branyon to provide guidance to Global Laboratories regarding the processing of stem cells. As a result of this agreement, Dammai routinely received umbilical cord blood in South Carolina from Global Laboratories and processed stem cells from the cord blood at the Medical University. Dammai would then send the stem cells he processed to Global Laboratories in Arizona. However, Dammai did not have any formal training in how to process stem cells.
Dammai admitted he received more than $55,00 from Global Laboratories for processing the stem cells. The stem cells were later sold by Branyon to Francisco Morales.
Sentencing has been set for Nov. 14, 2013, at which time Dammai faces up to one year in prison and a $10,000 fine.
Branyon and Morales have also entered guilty pleas in relation to the case and are also pending sentencing.
Assistant United States Attorneys Samuel Louis and Cedric Joubert prosecuted the case.
Real Estate Agent Arrested for Money LaunderingRead the Press Release
McALLEN, Texas - Freddy Centeno, of Brownsville, has been arrested following the return of two-count indictment alleging money laundering for a convicted drug trafficker and making false statements to federal agents, United States Attorney Kenneth Magidson announced today.
Centeno was taken into custody just a short time ago and he is expected to make his initial appearance before U.S. Magistrate Judge Ronald Morgan.
The sealed indictment was returned July 23, 2013, and unsealed today upon Centeno’s arrest. The indictment alleges that Centeno, a licensed real estate agent, helped a narcotics trafficker launder drug profits through the purchase of real properties in Brownsville.
If convicted, Centeno faces up to 20 years in prison and up to a $500,000 fine.
The arrest comes as a result of the ongoing Organized Crime Drug Enforcement Task Force investigation dubbed Operation Spike Strip. The narcotics trafficking and money-laundering investigation targeted the Armando Arambul drug trafficking organization which operated under the auspices of the Gulf Cartel in Matamoros, Mexico, and throughout the Southern District of Texas.
Arambul and others were responsible for transporting multi-ton quantities of cocaine to Houston and other major U.S. cities and remitted millions of dollars to the Gulf Cartel. Arambul was convicted and is set for sentencing Oct. 21, 2013, at which time he faces up to life in prison.
The investigation was conducted by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, FBI, Customs and Border Protection, Border Patrol, Cameron County District Attorney’s Office-Narcotics Investigation Division and the U.S. Marshals Service. Assistant United States Attorneys Jesse Salazar is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Laredo Jury Convicts Three in “Operation El Patron”Read the Press Release
LAREDO, Texas – Three drug and money laundering co-conspirators have been found guilty of charges resulting from a long-term Organized Crime Drug Enforcement Task Force (OCDETF) investigation, United States Attorney Kenneth Magidson announced today. The jury returned its verdicts following a seven-day trial and more than five hours of deliberation.
Enrique Mendez, of Laredo, Carlos Javier Flores Sr. and his son Carlos Javier Flores Jr., both of Zapata, engaged in a conspiracy to distribute bulk quantities of cocaine from Texas to Georgia and returned drug proceeds to Laredo and into Mexico. During the course of the investigation that led the convictions, agents seized more than $7.5 million in drug proceeds and more than 450 kilograms of cocaine. Agents also seized a drug ledger that attributes the movement/distribution of approximately 12,500 kilograms of cocaine and $41. 9 million in drug proceeds by these and other co-conspirators.
The trial began July 22 and finished late yesterday and included more than 20 government witnesses. Mendez was found guilty of drug conspiracy, money laundering conspiracy and four substantive counts of laundering U.S. currency in amounts ranging from $200,468 to $999,465. Flores Sr. and Jr. were both found guilty of drug conspiracy, while Flores Sr. was also found guilty of a substantive count of possession of a controlled substance in excess of five kilograms of cocaine. Mendez and Flores Sr., who each have prior felony drug convictions, are facing a mandatory minimum of 20 years and a maximum of life imprisonment without parole as well as a $20 million fine. Flores Jr. is facing a mandatory minimum punishment of 10 years and up to life as well as a $10 million fine.
To date, 25 other co-conspirators have been convicted and sentenced as part of this investigation. Seven other co-conspirators identified in this investigation are scheduled for sentencing later this year.
The charges and resulting convictions are the result of OCDETF operation dubbed Operation El Patron involving Homeland Security Investigations, Internal Revenue Service – Criminal Investigation and the Drug Enforcement Administration. Agencies who assisted in the arrests and other aspects of the investigation included the Webb County District Attorney’s Office, U.S. Marshals Service, U.S. Border Patrol, Webb County Sheriff’s Office, Laredo Police Department and the Texas Department of Public Safety. Assistant U.S. Attorneys Graciela Rodriguez Lindberg and Sanjeev Bhasker prosecuted the case.
Weslaco Man Sentenced for Carjacking Woman and Four ChildrenRead the Press Release
McALLEN, Texas - Luis Armando Garza Jr., 31, of Weslaco, has been ordered to prison following his conviction for carjacking and use of a firearm during a crime of violence, United States Attorney Kenneth Magidson announced today. Garza pleaded guilty Feb. 27, 2013.
Today, U.S. District Judge Micaela Alvarez sentenced Garza to 139 months in federal prison followed by five years of supervised release and ordered restitution to the victims.
The conviction stems from Garza’s armed carjacking of a minivan from a woman and four children on Nov. 25, 2012. The evidence presented during the hearing today showed that a Mexican National offered to pay Garza $2,000 to steal a vehicle he could take to Mexico. Once the Mexican National provided him with the handgun, Garza approached a minivan while it was parked at a Weslaco convenience store. Without warning, Garza pointed the weapon at the owner while demanding she and the children, ranging from 12 to 15 years of age, exit the vehicle. Once they complied with his demands, Garza stole the family vehicle.
In handing down the sentences, Judge Alvarez noted the tremendous amount of harm he had inflicted by pointing his weapon at a mother and her terrified children. She referenced the financial and emotional distress the victims continue to suffer from the Garza’s crime. Moreover, Judge Alvarez expressed her concern for the deliberate manner in which the defendant committed the offense as well as his lengthy and violent criminal history.
Garza 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 with assistance from the Weslaco Police Department. The case is being prosecuted by Assistant United States Attorney Grady J. Leupold.
Mission Man Ordered to Federal Prison for Child Pornography ConvictionRead the Press Release
McALLEN, Texas – Mission resident Jose Alaniz-Allen, 23, has been ordered to prison for nearly 19 years following his conviction of receipt of child pornography, United States Attorney Kenneth Magidson announced today. Alaniz-Allen pleaded guilty Jan. 31, 2013.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty plea, handed Alaniz-Allen a sentence of 225 months in federal prison, taking into consideration various sentencing enhancements. The court noted the offense involved the distribution of images for the receipt, or expectation of receipt, of a thing of value as well as the fact that some of the minors depicted in the pornographic images were vulnerable victims, being under the age of five. In handing down the sentence, Judge Alvarez stated that this crime causes a great harm to the community and individuals like Alaniz-Allen create a demand for this material. She further commented that she does not understand how anyone could gain satisfaction from watching an infant or a young child being sexually abused. Alaniz-Allen will serve five years of supervised release following completion of his prison term, during which time he is not to reside or work near schools or places where children commonly gather, have no direct contact with minors, restricted Internet access and various other conditions. He will also be ordered to register as a sex offender.
Alaniz-Allen came to the attention of law enforcement following an investigation which began Sept. 14, 2012, into persons using the Internet to traffic in child pornography. A Homeland Security Investigations (HSI) agent was able to locate and identify Alaniz-Allen as the owner of a computer as offering to participate in the distribution of child pornography movies through a peer-to-peer network.
On Nov. 29, 2012, a search warrant was executed at his Mission residence and a computer and various external storage media devices were seized. The forensic examination revealed 23 movies of clearly young children engaged in sexually explicit conduct. The images included children under the age of 12 engaged in bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
Alaniz-Allen admitted he downloaded child pornography from the Internet thereby receiving and possessing the child pornography found on his computer.
Alaniz-Allen will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant United States Attorneys Kimberly Leo and Juan Villescas and investigated by 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."
Former Fugitive Finally Sent to PrisonRead the Press Release
BROWNSVILLE, Texas – Juan Becerra Vallejo, 55, has just been handed a federal prison term following his conviction of possessing with intent to distribute cocaine, United States Attorney Kenneth Magidson announced today. Vallejo, a resident alien from Mexico who resided in Weslaco, pleaded guilty March 14, 2012.
Today, U.S. District Judge Hilda G. Tagle, who accepted the guilty plea, sentenced Vallejo to a total of 210 months in federal prison to be followed a five-year-term of supervised release. In handing down the sentence, Judge Tagle noted that Vallejo exercised management responsibility over the property, assets and activities of a criminal organization by arranging the transportation of multi-kilogram loads of marijuana and cocaine as well as millions of drugs proceeds for multiple drug suppliers.
Vallejo was indicted in 2009 at which time the court issued a warrant for his arrest. He was apprehended on Oct. 27, 2011.
The charges against Vallejo stem from a January 2005 investigation conducted by the Drug Enforcement Administration (DEA). That investigation led to the discovery that Noel Exinia, of La Feria and owner of NE and Family Transport, used one of his company’s tractor trailers to deliver approximately 234 kilograms of cocaine from the Rio Grande Valley to New York City. It was later discovered that Vallejo made the arrangements with Exinia for the transportation of the narcotics load to New York City and had caused the distribution of the load to Exinia for this purpose.
He has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
As a result of the overall Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Hot Pursuit, $805,416 in illegal drug proceeds have been seized.
Exinia himself pleaded guilty after hearing four days of evidence at a jury trial in October 2005. He was later sentenced to 600 months in federal prison.
The OCDETF investigation was conducted by the DEA, Cameron County District Attorney’s Office - Narcotics Division, FBI, Border Patrol, Internal Revenue Service-Criminal Investigation and the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorneys Charles Lewis and Israel Cano III.
Mexican Boat Captain Sentenced to Federal Prison After Fleeing from Coast GuardRead the Press Release
BROWNSVILLE, Texas – Jose Alejandro Carrillo, 24, of Matamoros, Mexico, has been ordered to prison following his conviction of obstructing boarding, United States Attorney Kenneth Magidson announced today along with Rear Admiral Kevin S. Cook, Eighth Coast Guard District Commander. Castillo, who has been in custody since his arrest, pleaded guilty on April 24, 2013.
Today, U.S. District Judge Andrew S. Hanen sentenced Carrillo to 15 months in prison.
Carrillo was the captain of a Mexican fishing boat, typically referred to as a “launcha,” that fled from a Coast Guard vessel attempting to detain them for an inspection on March 16, 2013. Carrillo had been fishing illegally in U.S. waters and did not want to lose his catch or the launcha. A chase on rough open seas ensued, during which Carrillo had another crewmember, Ismael Lopez-Ortiz, assist him in controlling the launcha. During the chase, the launcha twice made contact the Coast Guard vessel. Carrillo finally stopped and allowed the launcha to be boarded and inspected after Carrillo’s crew asked him to stop the flight."When vessel operators fail to stop and attempt to flee the Coast Guard, they put themselves and others at great risk," said Cook. "The Coast Guard hopes that this sentence serves as a deterrent to other operators in similar situations. We appreciate and commend the efforts of the Department of Justice and the Coast Guard Investigative Service for bringing this case forward."
Carrillo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case, investigated by the Coast Guard Investigative Service, was prosecuted by Assistant United States Attorney Joseph Leonard.
“Professional” Medicare Beneficiary Turned Patient Recruiter Sentenced to Federal PrisonRead the Press Release
HOUSTON—Robert Glenn Baker, 57, of Houston, has been sentenced for conspiracy to violate the anti-kickback statute, United States Attorney Kenneth Magidson announced today. Baker pleaded guilty to the charge on Aug. 15, 2012.
Today, U.S. District Judge Sim Lake took into consideration Baker’s cooperation with law enforcement agencies and handed him a sentence of 18 months in federal prison followed by three years of supervised release. Baker was further ordered to pay restitution in amount of $157,359 to the Medicare Program and $16,294 to the Texas Medicaid program.Baker is a Medicare beneficiary. From March 2007 and continuing through April 2012, he visited several medical clinics in Houston and the surrounding areas which purportedly provided such medical services as physical therapy, diagnostic testing and mental health services. Baker did not have a medical need for these services, but would allow his Medicare benefits to be billed in exchange for cash. The owners and operators of the various medical clinics then submitted claims to Medicare for payment using Baker’s Medicare information.
Enticed by the money, Baker began recruiting and referring other Medicare and Medicaid beneficiaries to the clinics. The owners and operators of the clinics paid Baker a referral fee, typically in cash, for each individual he referred.
This case was investigated by agents and investigators of the Inspector General’s Office of the U.S. Department of Health and Human Service, the Texas Attorney General’s Medicaid Fraud Control Unit and the Railroad Retirement Board - Office of Inspector General.
Special Assistant U.S. Attorney Justin Blan prosecuted this case.“Professional” Medicare Beneficiary Turned Patient Recruiter Sentenced to Federal PrisonRead the Press Release
HOUSTON—Robert Glenn Baker, 57, of Houston, has been sentenced for conspiracy to violate the anti-kickback statute, United States Attorney Kenneth Magidson announced today. Baker pleaded guilty to the charge on Aug. 15, 2012.
Today, U.S. District Judge Sim Lake took into consideration Baker’s cooperation with law enforcement agencies and handed him a sentence of 18 months in federal prison followed by three years of supervised release. Baker was further ordered to pay restitution in amount of $157,359 to the Medicare Program and $16,294 to the Texas Medicaid program.Baker is a Medicare beneficiary. From March 2007 and continuing through April 2012, he visited several medical clinics in Houston and the surrounding areas which purportedly provided such medical services as physical therapy, diagnostic testing and mental health services. Baker did not have a medical need for these services, but would allow his Medicare benefits to be billed in exchange for cash. The owners and operators of the various medical clinics then submitted claims to Medicare for payment using Baker’s Medicare information.
Enticed by the money, Baker began recruiting and referring other Medicare and Medicaid beneficiaries to the clinics. The owners and operators of the clinics paid Baker a referral fee, typically in cash, for each individual he referred.
This case was investigated by agents and investigators of the Inspector General’s Office of the U.S. Department of Health and Human Service, the Texas Attorney General’s Medicaid Fraud Control Unit and the Railroad Retirement Board - Office of Inspector General.
Special Assistant U.S. Attorney Justin Blan prosecuted this case.Members of Distribution Ring Sent to Federal Prison for Trafficking Nearly A Ton of MarijuanaRead the Press Release
McALLEN, Texas – Mexican Nationals Gabriel Miramontes, 36, Carlos Garza-Salazar, 31, Jose Gonzalez-Lopez, 27, and Librado Zuniga-Polanco, 30, have been ordered to prison following their convictions in relation to a marijuana trafficking conspiracy, United States Attorney Kenneth Magidson announced today. The men pleaded guilty on Feb. 7, 2012.
Today, U.S. Chief District Judge Ricardo Hinojosa sentenced the ring leader, Miramontes, to 97 months in federal prison. Miramontes had recruited the remaining defendants to package and distribute marijuana. Garza-Salazar, Gonzalez-Lopez and Zuniga-Polanco received respective sentences of 60, 33 and 22 months for also conspiring to possess with intent to distribute more than 100 kilograms of marijuana. Not U.S. Citizens, they are expected to face deportation proceedings following completion of their prison terms.
In September and October 2011, narcotics investigators of the Texas Department of Public Safety launched an investigation into a marijuana distribution ring operating out of a rented warehouse unit in Pharr. Investigators conducted a traffic stop of a commercial vehicle departing the warehouse after investigators observed the defendants packaging and loading the narcotics. A search of the vehicle revealed the presence of 1,906 pounds of the drug.
The evidence presented during the hearing today showed Miramontes had established a marijuana distribution network that received marijuana from Mexico, concealed the narcotics within produce crates and arranged legitimate commercial tractor trailers to transport the concealed marijuana to distribution networks across the country. Miramontes relied upon his family-owned produce business to provide the limes and cilantro used to conceal the marijuana. In the months preceding his arrest, Miramontes began to pursue his aspiration to became a song artist, performing in venues across Mexico. The investigation indicated Miramontes recruited the remaining defendants to perform the manual labor of packaging, concealing and transporting the narcotics.
All four of the defendants 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 Texas Department of Public Safety and is being prosecuted by Assistant United States Attorney Grady J. Leupold.
Members of Distribution Ring Sent to Federal Prison for Trafficking Nearly A Ton of MarijuanaRead the Press Release
McALLEN, Texas – Mexican Nationals Gabriel Miramontes, 36, Carlos Garza-Salazar, 31, Jose Gonzalez-Lopez, 27, and Librado Zuniga-Polanco, 30, have been ordered to prison following their convictions in relation to a marijuana trafficking conspiracy, United States Attorney Kenneth Magidson announced today. The men pleaded guilty on Feb. 7, 2012.
Today, U.S. Chief District Judge Ricardo Hinojosa sentenced the ring leader, Miramontes, to 97 months in federal prison. Miramontes had recruited the remaining defendants to package and distribute marijuana. Garza-Salazar, Gonzalez-Lopez and Zuniga-Polanco received respective sentences of 60, 33 and 22 months for also conspiring to possess with intent to distribute more than 100 kilograms of marijuana. Not U.S. Citizens, they are expected to face deportation proceedings following completion of their prison terms.
In September and October 2011, narcotics investigators of the Texas Department of Public Safety launched an investigation into a marijuana distribution ring operating out of a rented warehouse unit in Pharr. Investigators conducted a traffic stop of a commercial vehicle departing the warehouse after investigators observed the defendants packaging and loading the narcotics. A search of the vehicle revealed the presence of 1,906 pounds of the drug.
The evidence presented during the hearing today showed Miramontes had established a marijuana distribution network that received marijuana from Mexico, concealed the narcotics within produce crates and arranged legitimate commercial tractor trailers to transport the concealed marijuana to distribution networks across the country. Miramontes relied upon his family-owned produce business to provide the limes and cilantro used to conceal the marijuana. In the months preceding his arrest, Miramontes began to pursue his aspiration to became a song artist, performing in venues across Mexico. The investigation indicated Miramontes recruited the remaining defendants to perform the manual labor of packaging, concealing and transporting the narcotics.
All four of the defendants 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 Texas Department of Public Safety and is being prosecuted by Assistant United States Attorney Grady J. Leupold.
Laredoan Convicted in Meth and Marijuana ConspiracyRead the Press Release
LAREDO - Santos Eliseo Carpio Jr., 33, of Laredo, has entered a plea of guilty to conspiracy to possess with the intent to distribute methamphetamine and marijuana, United States Attorney Kenneth Magidson announced today.
In April 2012, Carpio arranged for truck drivers to transport methamphetamine and marijuana to Dallas and Chicago. Carpio first notified the drivers that he was “wrapping” the drugs, then drove to a local Laredo restaurant with another individual. There, he exited the car with a duffel bag and gave it to the drivers. Inside were two Ziploc bags with 1.824 kilograms of methamphetamine.
In May and June 2012, Carpio met with a pilot and attempted to arrange for 1200 to 1500 kilograms of marijuana to be flown from Mexico to the United States. On separate occasions, he requested wrapping material for marijuana which was provided to a co-conspirator at a gas station in Laredo.
Carpio will remain in custody pending his sentencing hearing to be set in the near future. At that time, he faces a mandatory minimum sentence of 10 years and up to life in prison and a possible $10 million fine.
The investigation leading to the charges was conducted by the Drug Enforcement Administration. Assistant United States Attorney Elizabeth Rabe is prosecuting the case.
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON - A member of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Billy Frank Weatherred, aka “Billy The Kid,” 28, of Dallas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Weatherred 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. Weatherred 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, Weatherred 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 Oct. 24, 2013, at 2:00 p.m., at which time Weatherred faces a maximum penalty of life in prison.
Weatherred is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. He is the ninth 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.
Former Biller for RGV DME Gets More Than 11 Years in Federal Prison for His Role in $11 Million Health Care Fraud SchemeRead the Press Release
McALLEN, Texas – One of the billers for a now defunct McAllen area durable medical equipment (DME) business has been ordered to prison for his role in a conspiracy and scheme to defraud Medicare and Medicaid through fraudulent billings, United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott announced today. Ramon De La Garza, 52, of Mission, was a biller for RGV DME from approximately August 2004 through approximately April 2009. The scheme involved approximately $11.1 million in false claims to Medicare and Medicaid.
Today, De La Garza, was handed a sentence of 110 months for conspiracy to defraud Medicare and Medicaid and an additional mandatory 24-month-term for aggravated identity theft which must be served consecutively to the other sentence imposed, resulting in a total sentence of 134 months in federal prison. He will also serve three years of supervision following his release. In addition to the prison sentence, he was ordered to pay restitution to Medicare and Medicaid in the amount of $5,059,198.96, and a money judgment will be entered against him for that amount.
De La Garza and Former RGV DME Owner Marcello Herrera, 40, along with his wife Carla Cantu Herrera, 32, both from Mission, pleaded guilty on Feb. 21, 2013, to conspiring to defraud Medicare and Texas Medicaid. Beatriz Ramos, 28, of Edinburg, another former biller for RGV DME, pleaded guilty to the conspiracy on Oct. 16, 2012. Marcelo Herrera and De La Garza also pleaded guilty to one count of aggravated identity theft for unlawfully using the identity of a beneficiary to bill Medicare and Medicaid $5,000 for a power wheelchair that was not requested, prescribed, needed or delivered.
Marcelo Herrera was sentenced earlier this month to 120 months for the conspiracy as well as the mandatory 24 months for aggravated identity theft for a total of 144 months in federal prison. The court ordered him to pay restitution to Medicare and Medicaid in the amount of $6,103,953.74 and that he forfeit wheelchairs, scooters and other DME items discovered in his leased storage facility in Alamo, which had been rented by him and ultimately seized by the FBI.
From early 2004 through late 2011, Marcello Herrera, who did business as RGV DME in the McAllen area, engaged in and directed a scheme to submit fraudulent claims to Medicare and Texas Medicaid for power wheelchairs, scooters, incontinent supplies, hospital beds and mattresses as well as other DME supplies. At various times, his wife - who admitted to being marketing director, chief financial officer, chief operating officer, office manager, human resources manager and co-owner of RGV DME - and billers De La Garza and Ramos all participated in the conspiracy and aided Marcello Herrera and each other in the submission of fraudulent billings, wire fraud and theft of the identities of beneficiaries and doctors.
In court on Feb. 21, 2013, De La Garza admitted that during his participation in the conspiracy the fraudulent billing exceed $9.6 million for which payments exceeded $5 million. Marcelo Herrera acknowledged he submitted or caused the submission of more than $11.1 million in false and fraudulent claims to Medicare and Texas Medicaid for which he illegally received in excess of $6.1 million, while Carla Herrera admitted that during her participation in the conspiracy, the fraudulent billings exceeded $9.9 million for which they received illegal payments exceeding $5.5 million. Marcelo Herrera, his wife and De La Garza also admitted that approximately 85% of their Medicare and Texas Medicaid billings were false and fraudulent.
The three defendants in court on Feb. 21, 2013, also admitted that marketers were used to obtain Medicare and Medicaid identification numbers and other information from beneficiaries which they in turn used to fraudulently bill Medicare and Medicaid for DME that was either never prescribed or prescribed but never delivered.
Ramon De La Garza has been in custody since his arrest on June 28, 2012. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Sentencing for Carla Herrera and Ramos are set for Sept. 18, and 26, 2013, respectively.
The investigation leading to the charges was conducted by the FBI, the U.S. Department of Health and Human Services-Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney Grady Leupold are prosecuting the case.
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 Grady Leupold are prosecuting the case.
Another Plea in Panama Unit CaseRead the Press Release
McALLEN, Texas – Alexis Espinoza, 30, has entered a guilty plea to one count of conspiring to possess with the intent to distribute more than five kilograms of cocaine and more than 500 grams of methamphetamine, United States Attorney Kenneth Magidson announced today.
Espinoza, of McAllen, admitted that during 2012, he utilized his position as a law enforcement officer to traffic narcotics. Espinoza, a former officer with the Mission Police Department (MPD), along with other MPD officers and deputies of the Hidalgo County Sheriff’s Offic, used his law enforcement authority to steal narcotics which were then sold to local drug dealers.
U.S. District Judge Randy Crane, who accepted the guilty plea, has set sentencing for Sept. 10, 2013, at which time he faces a minimum of 10 years and up to life in prison, along with a potential fine up to $10 million. Espinoza was permitted to remain on bond pending that hearing.
The investigation leading to the charges was conducted by the Drug Enforcement Administration, Homeland Security Investigations, FBI, Homeland Security Investigations - Office of Professional Responsibility and Texas Department of Public Safety. Assistant United States Attorneys James Sturgis and Anibal Alaniz are prosecuting the case.
Rio Grande City Man Gets 15 Years for Transporting Meth in A Shampoo BottleRead the Press Release
CORPUS CHRISTI, Texas – Pedro Guerra-Ruiz, 34, of Rio Grande City, has been ordered to federal prison following his conviction for possession with intent to distribute approximately 1.51 kilograms of methamphetamine, United States Attorney Kenneth Magidson announced today. Guerra pleaded guilty April 29, 2013.
Today, U.S. District Judge Nelva Gonzales Ramos, who accepted the guilty plea, handed Guerra a total sentence of 180 months. He will be required to serve a term of five years of supervised release following completion of the prison term.
Guerra was arrested on Feb. 1, 2013, at the United States Border Patrol checkpoint in Sarita as a passenger on an El Expresso bus. Border Patrol (BP) agents boarded the bus to conduct immigration inspections of its occupants and Guerra was observed carrying a backpack which contained an conspicuously altered shampoo bottle. A BP service canine alerted to the presence of contraband in the shampoo bottle which, upon further inspection, revealed an unusually watery consistency uncharacteristic of shampoo. The substance was tested and confirmed to be methamphetamine with a weight determined to be 1.51 kilograms.
At the time of his guilty plea, Guerra admitted he had agreed to transport the methamphetamine to Houston in exchange for $1000.
Guerra 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 Drug Enforcement Administration with the assistance of BP and prosecuted by Assistant United States Attorney Sam Brown IV.Multiple Arrests in Alleged Marijuana Conspiracy Out of Starr CountyRead the Press Release
McALLEN, Texas - A total of 12 individuals have been arrested in connection with a conspiracy to possess with intent to distribute marijuana from March 1, 2012 through June 25, 2013, United States Attorney Kenneth Magidson announced today. The indictment, returned June 25, 2013, was partially unsealed upon the arrests today and yesterday. It remains sealed as to those charged but not as yet in custody.
The arrests stem from a year-long Organized Crime Drug Enforcement Task Force (OCDETF) investigation targeting the illegal importation and distribution of marijuana from Starr County to other locations within the United States.
Delfino Bazan, 44, of Rio Grande City and Houston, and his common law wife, Alejandrina Martinez, 43, of Houston, were arrested at their Houston residence on Monday, July 22. Both are charged with conspiring to launder proceeds from drug trafficking. Bazan is also charged with conspiracy to possess with intent to distribute more than 100 kilograms of marijuana as well as several substantive drug trafficking counts. Bazan and Martinez both made their initial appearances yesterday before U.S. Magistrate Judge John R. Froeschner in Galveston. U.S. Magistrate Judge Froeschner ordered Bazan into custody pending a detention hearing to be held at a later date in McAllen. Martinez was permitted release upon posting bond and ordered to appear in court in McAllen on July 30, 2013.Today, nine others were taken into custody for conspiring with Bazan to possess with intent to distribute marijuana. Baldemar Montalvo, 45, Enrique Montalvo, 40, Thomas Garcia, 52, Ivan D. Campos-Landa, 31, and David Ulloa Correa, 47, all of Rio Grande City; Jose Luis Palacios Jr., 37, of Mission; Edmundo Canales, 23, and Jose Luis Palacios Sr., 63, both of Edinburg; and Elee Campos Camargo, 37, of McAllen, are all charged in the overall drug conspiracy.
On July 19, 2013, Mexican citizen Sostenes Ferreira-Garcia, 50, illegally residing in Rio Grande City, was arrested by law enforcement agents in relation to this case. He made his initial appearance yesterday before U.S. Magistrate Judge Dorina Ramos and was ordered detained pending a detention hearing on July 25, 2013, at 11:00 a.m.
All defendants, except for Martinez, are charged in the overall drug conspiracy which carries a potential range of punishment of five to 40 years and a possible $5 million fine. If convicted of conspiracy to launder drug proceeds, Baldemar Montalvo, Martinez and Bazan all face a potential punishment of up to 20 years in prison and a $500,000 fine. With the exception of Martinez, each defendant further faces one or more substantive drug trafficking charges, with amounts ranging from 14 to 1,959 kilograms in each instance. The punishment range on these charges, upon conviction, varies depending on the amount of drugs involved, from no more than five years up to a maximum of life in prison.
All those arrested today are expected to make their initial appearances before Judge Ramos on Wednesday, July 26, 2013, at which time they are expected to remain in custody pending further criminal proceedings.
The OCDETF investigation dubbed "Operation Casanova" is being conducted by Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation and the Starr County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law16 Arrested in Organized Crime Drug Enforcement Task Force OperationRead the Press Release
LAREDO, Texas – Multiple indictments have been partially unsealed following the arrest and appearances of several area residents for numerous drug and money laundering charges, United States Attorney Kenneth Magidson announced today. The enforcement actions took place in the Laredo, Houston and Dallas areas on Friday, July 19, 2013.
The seven indictments were returned earlier this year and partially unsealed today upon their appearances in federal court. The alleged members of this drug and money laundering organization are charged with various federal violations, including engaging in a conspiracy to possess with intent to distribute and possession with intent to distribute multi-kilograms quantities of marijuana, cocaine, heroin and methamphetamines as well as conspiracy to launder drug proceeds. The alleged illegal conduct occurred from approximately 2009 through 2011.
Those arrested include:
Juan Antonio Elizondo, 24, of Laredo
Ahmed Alejandro Plascencia, 33, of Laredo
Ernesto Jimenez, 26, of Laredo
Francisco Garza, 55, of Laredo
Christian Abundez, 23, of Laredo
Blanca Abundez, 28, of Laredo
Abraham Bruno Ortiz, 49, of Laredo
Adrian Torres, 22, of Laredo
Rene Sanchez, 46, of Laredo
Olegario Valdez, 42, of Rio Bravo
Marco Antonio Marchan, 49, of Dallas
Juan Artemio Trevino, 41, of Houston
Ilmar Sierra, 35, of Dallas
Gabriel Munoz Solis, 40, of DallasAll made their initial appearances this morning and have been ordered into custody pending a detention hearing which has been scheduled for July 25, 2013.
Two others - Rolando Ariel Reyes-Apac, 33, and Heriberto Soto, 44, are also charged but are currently in custody on unrelated charges. They are expected to make their initial appearance on the charges in the near future.
The indictments allege the drug trafficking organization operated out of the Laredo area. They allegedly engaged in a conspiracy to distribute bulk quantities of marijuana, heroin, methamphetamines and cocaine from the Laredo area to distribution venues such as Dallas and Houston. In conjunction with the drug conspiracy, according to the indictments, the organization was involved in a money laundering conspiracy wherein large sums of money were transported from points of drug distributions to Laredo and Mexico. The indictments remain sealed as to those charged but not as yet in custody.
In late 2012 and early 2013, seven others were arrested in relation to this investigation. Nancy Gutierrez, 28, Pedro Menchaca, 39, Ricardo Cruz, 22, Jimmy Eusebio Trujillo, 50, Artemio Lemos, 47, Rosendo Rodriguez, 52 and Gilberto Soto-Diaz, 38, all of Laredo, have since pleaded guilty and are pending sentencing.
The indictments are the culmination of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed “Operation Ultimate D” spearheaded by the Drug Enforcement Administration and Internal Revenue Service - Criminal Investigation with the assistance of Border Patrol, U.S. Marshals Service, Dallas Police Department Narcotics Unit, Webb County District Attorney's Office Drug Prosecution Unit, Laredo Police Department Narcotics Unit and Webb County Sheriff's Office Crime Stoppers Unit. Assistant United States Attorney Mary Lou Castillo is prosecuting the case.
Defendants are presumed innocent unless and until convicted through due process of law.Members of Crack Cocaine Distribution Ring Sent to Federal PrisonRead the Press Release
McALLEN, Texas – Alfredo Barrientos, 30, of Rio Grande City, and Mexican National Esteban Trevino, 39, have been ordered to prison following their convictions in relation to a crack cocaine trafficking conspiracy, United States Attorney Kenneth Magidson announced today. The two men pleaded guilty on March 4, 2013.
Today, U.S. District Judge Micaela Alvarez handed Barrientos and Trevino federal prison sentences of 85 and 30 months, respectively, for possessing with the intent to distribute crack cocaine. Barrientos also received a three-year-term of supervised release. Not a U.S. citizen, Trevino is expected to face deportation proceedings following completion of his prison term.
In August 2011, agents of the Drug Enforcement Administration (DEA) with assistance from the Rio Grande City Police Department launched an investigation into a crack cocaine distribution network in Rio Grande City. Following an investigation that included 20 drug transactions involving informants and undercover agents that resulted in the seizure of more than 180 grams of crack cocaine, a federal grand jury indicted 11 Rio Grande City residents including the defendants on Nov. 13, 2012. The investigation revealed the crack cocaine distribution network relied upon the use of at least four residential homes in Rio Grande City where drug buyers could purchase crack cocaine around the clock.
The evidence presented during the hearing today showed Barrientos assisted his brother, Emmanuel Barrientos, in the crack distribution ring that included Juan Trevino and Esteban Trevino. The group sold large quantities of crack from two adjacent residences in Rio Grande City. In handing down these sentences, Judge Alvarez noted the harm the defendants had inflicted upon their community and strongly admonished them for dealing drugs from their residences in the midst of their families including small children.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The remaining nine defendants ensnared in the year-long investigation have been convicted. On May 21, 2013, Judge Alvarez sentenced Emmanuel Barrientos, 33, to 168 months in federal prison, Juan Trevino, 38, to 82 months of confinement, while Jose Huerta, 29, and Eliza Escobar, 30, each received sentences of 12 months imprisonment.
Nancy Cantu, 32, was sentenced to 48 months in federal prison by Chief U.S. District Judge Ricardo H. Hinojosa, while Melissa Wolf, 48, received 33 months of incarceration. Luciano Lopez III, 46, and Nancy Clarke, 39, await sentencing before Judge Hinojosa on Aug. 16, 2013, at 9:30 a.m. Israel Pena is scheduled for sentencing on Sept. 27, 2013, at 9:30 a.m.
This case was investigated by the DEA and the Rio Grande City Police Department and is being prosecuted by Assistant United States Attorneys Grady J. Leupold and Jason Honeycutt.
Aryan Brotherhood of Texas Gang Associate Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – An associate of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to her involvement in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Samantha Goldman, 29, of Houston, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Goldman 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. According to court documents, Goldman held the position of ABT “Hub” and was often referred to as a “Featherwood.” In her capacity with ABT, she facilitated communication of criminal activities among imprisoned gang members regarding gang-related business, collection of dues, commission of disciplinary assaults against fellow gang members and acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Goldman has admitted to being an associate 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 violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
Judge Lake has set sentencing for Oct. 17, 2013, at which time Goldman faces a maximum penalty of life in prison.Goldman is one of 35 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. She is the eighth 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.
Family-Run Tax Fraud Scheme Sends Three to PrisonRead the Press Release
BROWNSVILLE, Texas – Judy Lynn McCune, Loretta Ann McCune and Rania Ann Sanchez have been ordered to prison for conspiring to defraud the federal government in a scheme to prepare federal tax returns and cash refund checks in the name of deceased individuals, United States Attorney Kenneth Magidson announced today along with Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz. The three women entered pleas of guilty in April 2013.
This morning, U.S. District Judge Andrew S. Hanen, who accepted the guilty pleas, handed Judy Lynn McCune a sentence of 57 months, while Loretta McCune and Sanchez will serve respective terms of 20 and 24 months in prison. The court also ordered the payment of restitution in the amount of $223,098 to the IRS. They will be required to serve a term of three years of supervised release following completion of their prison terms.
Judy Lynn McCune admitted she recruited members of her family, including her mother, Loretta Ann McCune, and her sister, Sanchez, into the scheme. The conspiracy involved obtaining Social Security numbers and dates of birth for deceased individuals through the Internet and then filing both paper and electronic federal income tax returns using the identifiers of these deceased individuals. The refunds were directly deposited in the personal bank account or mailed to the personal addresses of the accused. The total scheme consisted of approximately 340 false claims totaling $763,124 in filed false claims.
The court ordered Judy Lynn McCune to surrender on Aug. 27, 2013, to being serving her sentence. Loretta Ann McCune and Sanchez were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Robert and Edward Gutierrez, Judy Lynn McCune’s sons, are also charged in relation to the scheme. They have both pleaded guilty to filing a false income tax refund claim and are pending sentencing.
The case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Karen Betancourt.
Los Angeles Man Sent to Federal Prison for Soliciting A Child for SexRead the Press Release
CORPUS CHRISTI, Texas – Jeffrey Todd Howard, 34, of Los Angeles, Calif., has been ordered to prison following his conviction of soliciting a child for sex through the Internet, United States Attorney Kenneth Magidson announced today. Howard was convicted after a two-day bench trial before Senior U.S. District Judge John D. Rainey on April 4, 2013.
Today, Judge Rainey handed Howard a total sentence of 120 months in federal prison. Howard will also be required to serve a term of 10 years of supervised release following completion of the prison term during which time he will be required to comply with numerous conditions of release designed to limit his contact with children.
During trial, the government called several witnesses detailing the offense. The court learned that in February 2012, a concerned citizen reported disturbing online communications with a person she had met online. During those communications, Howard offered to pay the citizen to obtain children so he could have sex with them. An undercover detective with the Corpus Christi Police Department’s Internet Crimes Against Children Task Force (CCPD-ICAC) instructed the citizen to provide Howard with an email of her “friend” who might be able to help him obtain children for sex.Howard emailed the undercover officer and began a month long series of communications ending in late March 2012. During the course of those communications, Howard discussed his desire to engage in criminal sexual acts with the officer’s 11 and 14-year-old daughters. Howard discussed how the officer should prepare her daughters in advance of his sexual encounter with them. Howard also sent pictures of his genitals to be shown to the daughters to increase their sexual interest in him.
Homeland Security Investigations (HSI) assisted in the investigation and discovered Howard had expressed an interest in sexually assaulting children with other women in the past. After his arrest in Los Angeles in November 2012, his phone was examined and determined to contain more than 1300 images which indicated a sexual interest in children.
Howard testified during his trial and admitted he had been sexually interested in children for two years but denied any intention to act on those desires.
Howard will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
CCPD-ICAC and HSI investigated.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Bank Employee Charged with Bank FraudRead the Press Release
McALLEN, Texas - Edna Edith Sepulveda, 39, of McAllen, has surrendered to federal authorities following the return of an indictment alleging she perpetrated more than $200,000 in bank fraud, United States Attorney Kenneth Magidson announced today.
The indictment was returned July 9, 2013, and she made her initial appearance today, at which time she was permitted release upon posting bond.
According to the indictment, Sepulveda was a former employee of Inter National Bank of McAllen. Beginning in Jan. 10, 2006, she allegedly devised a scheme to take money from Inter National Bank by fraudulent means. She then placed the funds into the accounts of her parents allegedly intended for her own personal use, according to the allegations. The total amount of loss to Inter National Bank is $232,351.19.
If convicted, Sepulveda faces up to 30 years in federal prison as well as a $1 million fine.
This case is being investigated by the FBI with the cooperation of Inter National Bank. Assistant United States Attorney Jason C. Honeycutt is prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Alien Smuggler Who Used Craigslist to Hire Drivers Heads to Federal PrisonRead the Press Release
McALLEN, Texas - José Gustavo Diaz-Velasquez, 30, a Mexican national who resided in the Rio Grande Valley, has been ordered to prison for alien smuggling and unlawful possession of a firearm, United States Attorney Kenneth Magidson announced today. Diaz-Velasquez entered a guilty plea on July 27, 2012.
Today, Chief U.S. District Judge Ricardo H. Hinojosa, who accepted the guilty plea, handed Diaz-Velasquez a sentence of 87 months in federal prison for both counts of conviction to be served concurrently. In handing down the sentence, Judge Hinojosa took into consideration that Diaz-Velasquez hired a number of drivers through Craigslist to transport aliens within the United States, as well as the number of aliens ultimately transported. Diaz-Velasquez is expected to face deportation proceedings following his release from prison.
Diaz-Velasquez had been the subject of an alien smuggling investigation led by Homeland Security Investigations (HSI) agents which involved the use of the Craigslist website to recruit drivers to transport undocumented aliens within the Rio Grande Valley.
The investigation began in August 2011 when HSI agents identified approximately 10 different postings believed to be connected with the organization. Through further investigation, agents were able to identify the physical location used to make the Craigslist postings as an apartment belonging to the wife of Diaz-Velasquez in McAllen. He also had a YouTube account in which a copy had been posted of a dash-cam video of a high speed pursuit which had occurred on April 24, 2011, in La Joya. Although the driver ultimately eluded capture by law enforcement, officers apprehended nine undocumented aliens from the vehicle of Diaz-Velasquez.
During the course of the investigation, agents interviewed multiple individuals who were hired by the organization to transport undocumented aliens, some of whom were able to provide information in support of the investigation.
Diaz-Velasquez was apprehended in Rio Grande City on March 14, 2012, by Border Patrol agents. On that morning, Border Patrol agents observed Diaz in the vicinity of an known alien and narcotics smuggling location in Rio Grande City. Knowing that Diaz-Velasquez was illegally in the United States and had been previously deported to Mexico, he was taken into custody.
Diaz-Velasquez ultimately admitted that he hired another individual to pick up aliens in Rio Grande City and transport them to another location within the United States.
Concerning the firearm charge, Diaz-Velasquez ultimately admitted that on or about July 17, 2011, he was an alien who was illegally and unlawfully in the United States and that he possessed a Spike’s Tactical, Model ST-15, 5.56mm rifle in and affecting commerce, which had been shipped and transported in interstate and foreign commerce.
Diaz-Velasquez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was initiated by HSI with the assistance of Border Patrol. Assistant United States Attorney Linda Requénez prosecuted the case.
Last Man Convicted in Attempted Armored Car RobberyRead the Press Release
HOUSTON - Terrance Saffore, 25, has entered a plea of guilty to conspiracy to interfere with commerce by robbery, United States Attorney Kenneth Magidson announced today.
Also charged in the crime are Malcolm Jamal Austin, 25, James Patrick Campbell, 26, and William Terrell Archer, 21, all of Houston. All previously entered guilty pleas and are pending sentencing.
On June 22, 2011, Austin attempted to rob a Loomis armored car service guard as the guard left a Bank of America at 12188 Gulf Freeway in Houston. He demanded money from the guard and reached for a gun. The guard then discharged his weapon and shot Austin three times. Austin also fired, but did not strike the guard.
Prior to the attempted robbery, Saffore drove Archer and Austin to the bank in a white Grand Prix which was owned by Campbell. Archer had gone inside. Once shots were fired, Archer ran back to the nearby apartment of Campbell.
After the failed robbery attempt and shooting, Austin ran to the vehicle and Saffore fled the scene with Austin.
All will be sentenced in October 2013.
Saffore and the others all face up to 20 years in prison and a possible $250,000 fine. Austin also faces an additional minimum of 10 years for discharging a firearm during the commission of a crime of violence which must be served consecutively to any other sentence imposed.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Houston Man Detained on Child Pornography ChargesRead the Press Release
HOUSTON – Roger Dean Matice, 71, of Houston, has been ordered into custody on charges of possession and distribution of child pornography, United States Attorney Kenneth Magidson announced today.
Matice was indicted on June 19, 2013. Today, U.S. Magistrate Judge George C. Hanks Jr. ordered him detained pending further criminal proceedings.
The investigation revealed Matice was allegedly making child pornography available to others through the use of peer-to-peer software over the Internet. A task force officer chatted with Matice online and allegedly received images of child pornography from him during those interactions. The chats and downloads were traced to both Matice’s place of business and his home, according to the allegations.
Search warrants were issued for both locations, at which time computers were seized and analyzed. According to court records, more than 22,500 images and 470 videos containing child pornography were found. These images allegedly included children under 12 being sexually violated by adults, children under 12 in positions which caused their genitalia to be displayed in a lewd/lascivious manner, as well as children being penetrated by a foreign object.
Matice faces a minimum of five and up to 20 years imprisonment for distribution of child pornography as well as a maximum of 10 years in prison for possession of child pornography. Both charges also faces a possible $250,000 fine, upon conviction.
The charge was the result of an investigation conducted by the FBI Innocent Images Task Force which includes members of the Harris County Sheriff’s Office.
This case, prosecuted by Assistant United States 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.