Southern District of Texas

HOUSTON - Drs. Arun and Kiran Sharma, two local physicians previously sentenced for defrauding Medicare, Medicaid and more than a dozen private insurers, have appeared in federal court for a resentencing hearing on restitution and forfeiture issues, United States Attorney Kenneth Magidson announced today.

The Sharmas, both 58, are a married couple who operated medical clinics in Baytown and Webster under the name Allergy, Asthma, Arthritis and Pain Center. In April 2010, they pleaded guilty to conspiracy to commit health care and mail fraud as well as one count of health care fraud for their decade-long scam of billing health care providers for injection procedures that they did not perform. U.S. District Judge David Hittner later sentenced Arun and Kiran Sharma to 15 and eight years in federal prison, respectively. A restitution order of more than $40 million was imposed, and the defendants were ordered to forfeit all property funded with the proceeds of their fraudulent scheme, including their $700,000 home in Kemah, numerous parcels of real property and a large number of investment accounts.

The Sharmas appealed the restitution and forfeiture aspects of their sentences to the Fifth Circuit. The convictions were upheld, but the case was remanded for re-sentencing on the narrow issue of the amount of restitution owed to their victims. At today's hearing, Judge Hittner ordered the Sharmas to pay $37,670,826.32 in restitution and ordered them jointly liable for a personal money judgment in the same amount. To date, the United States has seized assets valued at $27.6 million (cash, bank accounts, investment accounts, annuities and jewelry) as well as real estate potentially worth an additional $3.5 million after payment of liens.

All of the proceeds of these forfeitures will be returned to the victims of the Sharmas’ fraud. 

Originally charged in June 2009, the Sharmas operated the clinics at multiple locations in Baytown and Webster. Arun Sharma was known as an easy touch for prescribing the “pain cocktail” of hydrocodone, Xanax and Soma. In addition to the prescription of narcotics, a large part of the practice was to provide patients with injections of lidocaine combined with steroids which, at times, provided temporary relief of various joint and muscle pain. Although the injections given to the patients were superficial, they were billed falsely to the insurance companies as facet joint injections, paravertebral injections, sacroiliac nerve injections, sciatic nerve injections and various nerve block injections.

The pain management practice at the clinics grew quickly during the time period of the conspiracy. The doctors went from seeing an average of 50-60 patients per day in 1998 to more than 100 per day beginning in 2003 with a high of 279 on Jan. 6, 2005. From 1998 through 2002, Kiran Sharma saw pain patients at the clinics in addition to her own allergy patients. She maintained a modest allergy practice and would sign patient procedure forms and superbills, falsely indicating that she had administered facet joint injections or other paravertebral injections when in reality she did not. She also prescribed the pain cocktail when she saw pain management patients.

Nearly every patient was prescribed one or more controlled substances and put on a regimen of shots every two weeks. The patients were required to sign the medical progress and procedure notes in their patient chart to prove they were at the clinic and received the shots. Arun Sharma tried to convince all patients to have shots at every visit, but many of the patients did not want the shots every two weeks. For those patients who ultimately refused the shots, he regularly required the patients to sign the progress and procedure notes even though they received only a prescription for controlled substances and did not receive any injections. By the beginning of 2000, Arun Sharma had certain patients sign blank procedure/progress notes and then used those forms to generate a superbill in order to bill the insurance companies for injection procedures on days when the patient was not in the clinic.

Dr. Kiran Sharma hired several foreign medical graduates (FMGs) over the course of the conspiracy to assist in the movement of patients through the clinics. Several of the FMGs helped add fictitious patient examination information to the blank progress/procedure notes after Arun Sharma had added non-existent medical procedures to the blank forms so that insurance companies could be billed as if the person had been in the clinic when in reality they had not. Kiran Sharma witnessed the FMGs creating the fictitious patient progress/procedure notes and knew their ultimate purpose was to bill the insurance companies for procedures that never occurred.

Demonstrative of the implausibility of the volume of patients who allegedly received injections is the fact that the defendants’ own records purport to show that more than 100 patients purportedly received injections on 708 different days during the conspiracy. Further, their fraudulent billings showed that as many as 279 patients allegedly received injections on Jan. 6, 2005.

Both of the defendants have been in custody since their guilty pleas in April 2010 and were remanded back to their respective federal correctional institutions following the resentencing hearing. 

This case was jointly investigated by agents of the FBI, the United States Department of Health and Human Services - Office of Inspector General, Texas Attorney General’s Office - Medicaid Fraud Control Unit, Office of Personnel Management - Office of Inspector General, Railroad Retirement Board - Office of Inspector General, Drug Enforcement Administration and the National Insurance Crime Bureau. The case was prosecuted by Assistant United States Attorneys Al Balboni and Jason Varnado. Assistant United States Attorneys Kristine Rollinson and Lauretta Bahry handled the forfeiture matters and the appeal, respectively.

CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has found Luis Perez-Barocela guilty for his participation in a large drug trafficking conspiracy, United States Attorney Kenneth Magidson announced today. The jury returned its verdict just a short time ago after three days of trial and less than three hours of deliberation.

Perez-Barocela, 37, of Houston, was convicted of conspiracy to possess with the intent to distribute more than 1000 kilograms of marijuana from October 2011 until his arrest on Oct. 24, 2012.

Evidence at trial established that the organization moved large amounts of marijuana in tractor-trailers hauling produce through the Falufurrias Border Patrol checkpoint and on to other major cities within the United States. From October 2011 until April 2012, approximately 3,000 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 co-defendants Raul Peraza-Trejo, 44, of Miami, and Oscar Quijano, 43, of Dallas. 

The government proved Peraza-Trejo would procure large loads of marijuana in the Rio Grande Valley, while Perez-Barocela was responsible for recruiting drivers. 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. Jurors also learned Quijano provided the organization with his tractor-trailer on several occasions for use in the smuggling venture. 

Drivers Benitez, Cabrera-Enriquez, Galindo and others provided testimony that 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.   

Senior U.S. District Judge John Rainey, who presided over the trial, has set sentencing for Aug. 19, 2013, at which time Perez-Barocela faces a minimum of 10 years and up to life in prison as well as a $10 million fine. He will remain in custody pending that hearing. All other co-defendants and co-conspirators are awaiting sentencing.

The case was investigated by DEA, HSI and Border Patrol. Assistant United States Attorney Jeffrey D. Preston is prosecuting the case.

HOUSTON – 10 men set for trial this week on charges related to the armed bank robberies of several area financial institutions, including one involving the shooting of an off-duty sergeant, have now been convicted, United States Attorney Kenneth Magidson announced today.

Shelton McGowen, 24, opted to plead guilty before trial was set to begin on Tuesday. During jury selection on Wednesday, seven more entered guilty pleas – Derrick Williams, 28, Marcus Rosemond Tarpley, 32, Reginald Mosley, 37, Joel Keon Jackson, 33, Hakim Ibn Ahmad, 29, Alonzo Horace Harris, 37, and Patrick Wayne Simmons, 29. The final two – Calvin Wesley Gray, 33, pleaded guilty the morning of opening statements, while Dwayne Holmes, 35, entered his guilty plea following the government’s opening remarks and with a witness about to take the stand.

All men were convicted of conspiracy to commit bank robbery, multiple bank robbery charges as well as brandishing and/or discharging a firearm during commission of a violent crime.  

An 11th defendant, Anthony Demonde Nowlin, 24, had previously pleaded guilty earlier this year to bank robbery and conspiracy to interfere with commerce through bank robbery.

The government contended in its opening remarks that the defendants were part of a sophisticated criminal organization that planned and executed violent takeover style bank robberies of banks inside grocery stores. The conspiracy began on May 4, 2007, and ended with the arrest of some of the men on Sept. 16, 2011.

According to court records, the defendants would “case” banks and credit unions that were located in grocery stores, using force, violence and intimidation to rob them. During the robberies, which were committed on weekday mornings between 9:00 a.m. and noon, the defendants wore dark clothing, gloves, material over their faces and were armed with semi-automatic pistols, shotguns and Uzi style firearms to intimidate the bank employees. The men would also use stolen vehicles during the robberies to elude law enforcement.

During the Aug. 4, 2011, robbery of Wells Fargo Bank in Sugar Land, the robbers shot an off-duty sergeant with the Harris County Sheriff’s Office who was in the bank on personal business. He survived.

Tarpley, Nowlin, Ahmad, Mosley, McGowen and Williams were arrested on the morning of Sept. 16, 2011, on Interstate 45 North after several were observed both driving and going in and out of a stolen Dodge Intrepid. Officers later observed McGowen enter the Associated Credit Union for the purpose of casing it for a robbery. Law enforcement officers observed several suspicious vehicles one with paper plates near the Kroger that housed the Associated Credit Union on the day of their Sept. 16 arrest. Due to previous robberies of groceries store banks and credit unions, law enforcement had reason to believe that the defendants were about to commit an armed bank robbery.  

Further investigation led to the identification of the additional five defendants involved in the scheme resulting in the federal indictment for multiple bank robberies in the greater Houston area. After the dismantling of this 11-man crew, no further violent takeover style bank robberies occurred inside of bank grocery stores. 

The conspiracy charge carries as possible punishment a term of five years in federal prison as well as a $250,000 fine. For each conviction of bank robbery, the men also face as much as 20 years in prison and $250,000 fine. Use of a firearm in furtherance of a crime of violence will result in an additional minimum sentence of either seven or 10 years and up to life in prison which must be served consecutively to any other prison term imposed.

All defendants remain in custody pending sentencing. U.S. District Judge David Hittner, who presided over the trial, will set that hearing at a later date.  

This matter was investigated by the FBI Bank Robbery Task Force which is comprised of personnel from the FBI, Houston Police Department and the Harris County Sheriff's Office with special assistance from the Fort Bend County Sheriff’s Office and the Baytown and Pasadena Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Suzanne Elmilady and Kebharu H. Smith.

CORPUS CHRISTI, Texas – Kimberly Davis, 27, and Justin Colmenero, 30, both of Corpus Christi, have been indicted as a result of the efforts of a multi-agency investigation into structuring financial transactions, United States Attorney Kenneth Magidson announced today.

The sealed indictment was returned Wednesday, May 22, 2013, and unsealed this morning upon their arrests. They are expected to make an initial appearance before U.S. Magistrate Judge B. Janice Elllington tomorrow afternoon. 

Agents also executed federal search warrants at three local businesses and the residences of Davis and Colmenero.

The indictment alleges the defendants structured 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.

The Bank Secrecy Act of 1970 (BSA) requires financial institutions to file reports with the Treasury Department of cash transactions exceeding $10,000.

“Structuring financial transactions to avoid currency reporting requirements is a serious criminal violation of federal law under the BSA," said Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz. “We will vigorously investigate alongside our law enforcement partners to identify those allegedly involved in such schemes and suspected of committing this form of money laundering.”

The defendants face up to 10 years imprisonment and a fine up to $500,000, if convicted.

The investigation leading to the criminal charges was conducted in Corpus Christi lead by IRS-CI, Drug Enforcement Administration and the Corpus Christi Police Department. The case is being prosecuted by Assistant United States Attorneys Hugo R. Martinez and Lance A. Watt.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

McALLEN, Texas – Four members of the now defunct Panama Unit have been convicted, United States Attorney Kenneth Magidson announced today. Jonathan Trevino, 29, Claudio Mata, 35, and Eric Alcantar, 29, all of McAllen, and Salvador Arguello, 34, of Edinburg, entered guilty pleas just a short time ago before United States District Judge Randy Crane. Also pleading guilty today was a fifth individual, Gerardo Mendoza-Duran, 30, of Pharr, who was a member of the Hidalgo County Sheriff’s Office (HCSO) but not part of the Panama Unit itself.

Trevino, Arguello, Mata and Alcantar entered guilty pleas to one count of conspiring to possess with the intent to distribute more than five kilograms of cocaine, while Mendoza-Duran pleaded guilty to attempting to aid and abet the possession with the intent to distribute more than five kilograms of cocaine. 

From 2010 to December of 2012, Trevino, Arguello, Mata and Alcantar utilized their positions as law enforcement officers to steal narcotics and currency. All four were members of the Panama Unit which was a drug task force operated by the HCSO and comprised of HCSO deputies and officers with the Mission Police Department. The investigation revealed the defendants, upon learning the location of drugs and currency, would use their positions to gain entry into residences and vehicles in order to steal the contraband. Subsequently, the narcotics would be sold to other traffickers for a profit.  

Additionally, in exchange for thousands of dollars, Trevino and Mendoza-Duran agreed to use their law enforcement positions to escort multi-kilogram quantities of cocaine as it traveled through Hidalgo County.

Seven others are also charged in relation to this case. Their cases remain pending and they are considered innocent unless proven guilty though due process of law.

All five convicted today face a minimum of 10 years and up to life in prison, along with a potential fine up to $10 million. U.S. District Judge Randy Crane, who accepted the pleas, has set sentencing for Sept. 10, 2013. 

The investigation leading to the charges was conducted by the Drug Enforcement Administration, FBI and Homeland Security Investigations. Assistant United States Attorneys James Sturgis and Anibal Alaniz are prosecuting the case.

BROWNSVILLE, Texas – Edward and Robert Gutierrez have each entered guilty pleas to filing a false income tax refund claim, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI).

Robert Gutierrez pleaded guilty just a short time ago before U.S. District Judge Andrew S. Hanen, while Edward Gutierrez entered a plea of guilty on May 24, 2013, before U.S. Magistrate Judge Felix Recio.

Edward Gutierrez and Robert Gutierrez were recruited as part of a scheme enacted by their mother, Judy Lynn McCune, to file fraudulent tax returns. Their grandmother, Loretta Ann McCune, and aunt, Rania Ann Sanchez, have also been convicted as part of the scheme.

In their respective guilty pleas, Edward and Robert Gutierrez admitted they each presented a false W-2 to a commercial tax preparation firm indicating they had worked for the City of Harlingen in the year 2007 when in fact they had not. This firm then filed an Individual Income Tax Return, Form 1040, on their behalf with the Department of Treasury claiming a refund was owed paid based on the false W-2.

Robert Gutierrez requested a refund anticipation loan based on the fraudulent tax refund request of $1808. Edward Gutierrez made a similar request for a loan based on the fraudulent tax refund request of $1681.

Robert Gutierrez will be sentenced by Judge Hanen on Sept. 4, 2013, while Edward Gutierrez is set for Aug. 26, 2013. At that time, they each face a maximum of five years imprisonment and a possible $250,000 fine.

Judy Lynn McCune, Loretta Ann McCune and Sanchez all previously pleaded guilty or conspiring to defraud the federal government in a scheme to prepare federal tax returns and cash U.S. Treasury refund checks in the name of deceased individuals. They are set for sentencing on July 15, 2013, at 8:30 a.m. before the Judge Hanen. For their conviction, they each face up to 10 years in federal prison as well as a possible $250,000 fine.

The case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Karen Betancourt.

LAREDO, Texas – Juan Francisco Leal, 39, of Laredo, has been ordered to federal prison for 10 years for being a felon in possession of a shotgun, United States Attorney Kenneth Magidson announced today. Leal pleaded guilty to the charge Dec. 10, 2012. 

Today, U.S. District Judge Diana N. Saldaña sentenced Leal to a term of 120 months in federal prison – the maximum allowed by law. Following completion of his prison term, he will be on supervised release for three years.

Laredo Police Department (LPD) investigators interviewed Leal on Feb. 10, 2012, as a suspect in a murder in Laredo. In the course of the investigation, a Mossberg 12-gauge shotgun was found in the attic of Leal’s home. Officers also found a plastic bag containing 124.40 grams of methamphetamine. Leal stated he had acquired the shotgun for protection, because he sold drugs from his home. Leal also admitted he is a former member of the Mexican Mafia.

As a convicted felon, Leal is prohibited from possessing a firearm.

At the sentencing today, Leal asked for leniency. However, Judge Saldaña noted the defendant’s criminal history - dating to 1991 when convicted of attempted murder and two subsequent charges of alien smuggling and possessing marijuana - and stated  “there is strong need to protect the community from you.”

Court records reflect that on Oct. 10, 2012, a Webb County grand jury indicted Leal for murder.

This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide commitment to reduce gun and gang crime in America by networking existing local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. Since its inception in 2001, approximately $2 billion has been committed to this initiative. This funding is being used to hire new federal and state prosecutors, support investigators, provide training, distribute gun lock safety kits, deter juvenile gun crime and develop and promote community outreach efforts as well as to support other gun and gang violence reduction strategies.

The matter was investigated by the ATF in conjunction with the Laredo Police Department. Several police officers have been cross-designated as ATF task force officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Homero Ramirez prosecuted the case.

HOUSTON – A federal complaint has been unsealed charging Dante Phearse, 32, of Houston, with calling in bomb threats to two synagogues located in Houston, announced United States Attorney Kenneth Magidson and Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr.

The sealed complaint was filed Thursday, May 16, 2013, and unsealed today. Phearse is expected to make an initial appearance in Houston tomorrow at 10:00 a.m. before U.S. Magistrate Judge Nancy Johnson. At that time, the government expects to request he be detained pending further criminal proceedings.

Phearse is charged with one count of using an instrument of interstate commerce to communicate a threat to destroy a building by means of an explosive device. The complaint and accompanying affidavit allege that on the evening of April 30, 2013, Phearse telephoned two different synagogues in Houston - Congregation Beth Israel and Congregation Or Ami - and left voice mails threatening to bomb the Jewish houses of worship on May 2, 2013. .

In convicted, he faces up to 10 years in federal prison and a possible $250,000 fine.  

The case is being investigated by the Houston Police Department and the FBI. Assistant United States Attorneys Ruben R. Perez and Joe Magliolo are prosecuting along with trial attorneys Saeed Mody and Nicholas Murphy of the Civil Rights Division.

HOUSTON - Samuel Ray Palasota, 52, of Houston, has surrendered to federal authorities following the return of a 24-count indictment alleging he operated a fraudulent real estate investment scheme and defrauded a woman of $650,000, United States Attorney Kenneth Magidson announced today. 

The sealed indictment, returned May 8, 2013, and unsealed today, charges Palasota with 21 counts of mail fraud and three counts of wire fraud. Palasota is expected to appear before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.

According to the indictment, Palasota held himself out as a pastor and also claimed to manage a real estate investment program, doing business under the name “The Maker’s Resources.” From in or about December 2008 through approximately December 2009, Palasota knowingly devised and intended to devise a scheme and artifice to defraud by means of material false pretenses, representations and promises, the indictment alleges. Specifically, Palasota allegedly convinced a Mississippi woman to invest her money with him in an alleged real estate investment. However, instead of investing in real estate, Palasota stole her money, according to the indictment.

The woman divorced in 2007 and looked to Palasota for spiritual guidance and emotional support, according to the indictment.  During the time she was seeking guidance from him, she received approximately $1 million in her divorce settlement.

Palasota allegedly claimed to have a real estate investment program, in which he would purchase foreclosed homes in the Houston area at below-market prices and would later re-sell them for a profit. The indictment alleges Palasota told the woman he wanted investors who would partner with him to finance the purchase of the properties. As part of his scheme, Palasota claimed his real estate investment was “guaranteed” to provide a high rate of return to investors. The indictment indicates he provided the woman with an investment schedule that claimed the minimum rate of return would increase by five percent for every additional $100,000 she invested, up to a maximum of $650,000. 

The woman subsequently invested the maximum $650,000 in Palasota’s scheme, according to allegations. Palasota then allegedly used those funds for his personal benefit, including paying his personal expenses and purchasing automobiles.

In furtherance of the scheme, the indictment alleges Palasota did make payments to the woman which he termed “returns on investment.” These payments, however, were not the proceeds of an investment but were simply the return of a portion of her own money, made in an effort to appear as though the so-called investment was generating income.

If convicted, Palasota faces a possible 20 years in prison and a maximum $250,000 fine for each of the 21 counts of mail fraud and the three counts of wire fraud. The indictment also includes a notice of forfeiture in the amount of $650,000.

The case in being investigated by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

LAREDO, Texas – Frank Carter, 43, a former officer with the Laredo Police Department (LPD), has been sentenced to prison following his conviction for violating the civil rights of an arrestee, United States Attorney Kenneth Magidson announced today along with Assistant Attorney General for the Civil Rights Division Thomas E. Perez. Carter pleaded guilty on Thursday, March 7, 2013.
 
Today, U.S. District Judge Diana Saldana, who accepted the guilty plea, handed Carter a sentence of a year and a day in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, Judge Saldana commended Carter for accepting responsibility for his actions. Carter will also have to complete 75 hours of community service in the first six months following his release from prison.

Carter admitted that on May 26, 2012, while using his authority as a LPD officer, he struck a male victim who was handcuffed and detained in the backseat of Carter’s patrol car. Carter admitted he struck the victim several times.
 
According to information presented in court at the time of the plea, rear facing dash camera audio and video recordings revealed Carter had yelled obscenities at the victim while he punched the victim in the head and body. Carter also repeatedly slammed the victim’s face into the back of the seat. The victim remained handcuffed during the entire incident and never resisted or attempted to harm Carter.
 
Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
 
This case was investigated by the FBI, Texas Rangers and LPD. Assistant United States Attorney Ruben R. Perez and Civil Rights Division Trial Attorneys Ryan Murguia and Christopher Lomax are prosecuting the case.      

CORPUS CHRISTI, Texas – Leonel de La Torre, of Brownsville, has been ordered to prison for nearly 14 years for his involvement in a money laundering conspiracy operating in South Texas as well as other states, United States Attorney Kenneth Magidson announced today.

De la Torre, 32, was one of six people originally charged in an indictment returned in July 2006. He had been a fugitive until his capture earlier this year. He subsequently pleaded guilty Feb. 27, 2013, to conspiracy to launder funds generated by narcotics trafficking.

Today, Senior U.S. District Judge Janis Graham Jack handed him a sentence of 165 months in federal prison which will be followed by a three-year-term of supervised release.

De la Torre admitted he helped lead a group of individuals who transported cocaine from South Texas for distribution in Houston as well as in Ohio and Michigan. He further acknowledged he helped lead the “laundering” of those funds generated by the cocaine business. The funds were moved through the banking system using both domestic and international means. The group invested in real estate to help conceal the illegal source of the funds.

He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Jon Muschenheim as part of the Organized Crime and Drug Enforcement Task Force.

LAREDO, Texas - Arturo Hawkins, 51, and Alejandro Garcia-Ortega, 26, have been sentenced to federal prison following their convictions of conspiracy to possess with the intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Hawkins, of Laredo, and Alejandro Garcia-Ortega, of Mexico, pleaded guilty Dec. 27, 2012.

Today, U.S. District Judge Diana Saldaña, who accepted the guilty pleas, sentenced Hawkins to 120 months imprisonment to be followed by an eight-year term of supervised release. Garcia-Ortega received a sentence of 63 months imprisonment to be followed by a four-year term of supervised release.

On Sept. 28, 2012, Border Patrol agents patrolling ranchland near Mines Road in Laredo attempted to pull over a Ford utility truck that was driving in tandem with a black Ford F-150. As agents approached the utility truck on foot, the driver - later identified as Garcia-Ortega - drove into the brush on the side of the road. He then abandoned the moving truck and ran on foot.
Border Patrol agents recovered 41 bundles of marijuana weighing 364.2 kilograms that had been covered with coffee from an aftermarket compartment in the flatbed of the truck. The agents found a cellular telephone which held photographs of Garcia-Ortega and other evidence that led to his identification and subsequent arrest. 

That same day, Border Patrol agents stopped the Ford F-150 that had been driving in tandem with the truck carrying the marijuana. The driver was identified as Hawkins. According to the plea agreement, telephone records showed Hawkins made a number of telephone calls at the time of the immigration stop on the white utility truck. Agents also discovered a number of maps in Hawkins’ possession of various ranches and trails through the ranches. Hawkins also admitted to acting as a scout for the truck loaded with marijuana.

Both men 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 Border Patrol. Assistant United States Attorney Elizabeth R. Rabe prosecuted the case.

McALLEN, Texas – A federal magistrate in McAllen has accepted the guilty pleas of Guatemalan National Luis Gilberto Cruz-Solis, 19, of willfully and maliciously harming a police animal and for illegally entering the country, United States Attorney Kenneth Magidson announced today.

On May 12, 2013, Border Patrol K-9 “Dinie” was conducting line-watch operations with her handler and other federal agents when they discovered approximately 30 suspected undocumented aliens fleeing into an orchard near Mission. While in pursuit, “Dinie” located Cruz-Solis hiding in the brush. As the K-9 approached, Cruz-Solis attacked “Dinie” with a knife and stabbed her in the right side of her neck, inflicting a wound two inches deep that narrowly missed her spinal cord. Despite her injury, “Dinie” led agents to Cruz-Solis where he was apprehended.

U.S. Magistrate Judge Peter E. Ormsby accepted the pleas and set sentencing for June 5, 2013, at 3:00 p.m. At that time, Cruz-Solis faces up to a year in prison and a possible $100,000 fine. 

This case is being investigated by Border Patrol and the FBI. Assistant United States Attorneys Grady J. Leupold and Kimberly Leo prosecuted the case.

McALLEN, Texas – Arturo Cesar Rodriguez, 30, and Josue Gonzalez-Cardenas, 39, have both been ordered to federal prison for distributing crystal methamphetamine in two separate, but similar cases, United States Attorney Kenneth Magidson announced today along with Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA). Rodriguez, of Hurapan, Michoacan, Mexico, and Gonzalez-Cardenas, of Monclova, Coahuila, Mexico, entered guilty pleas on Feb. 27, 2013.

Today, U.S. District Judge Micaela Alvarez, who accepted the pleas, handed Gonzalez-Cardenas a total sentence of 57 months in federal prison. Following that hearing, Judge Alvarez then sentenced Rodriguez to a term of 188 months, noting that in his case, he was “critical” to the transaction. 

As illegal aliens both men are expected to face deportation proceedings following release from prison.

In the first case, Gonzalez-Cardenas was indicted along with Jose Cruz Deleon-Vasquez, 47, of San Juan. On Aug. 21, 2012, local law enforcement had conducted a traffic stop on the vehicle Deleon-Vasquez was driving. A subsequent search of the vehicle lead to the discovery of a box with two bundles of crystal methamphetamine. Gonzalez-Cardenas was to receive the box with the narcotics from another associate. Deleon-Vasquez was allegedly then supposed to drive Gonzalez-Cardenas to another location for delivery of the box of crystal methamphetamine to another associate for further distribution.

A subsequent analysis of the narcotics revealed the net weight of the crystal methamphetamine was 1.971 kilograms and that the narcotics had purity level of 93.3%.

Deleon-Vasquez is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Marshals Service at 1-877-WANTED2 or 1-800-336-0102. His case remains pending and he is presumed innocent unless convicted through due process of law.

In the second case, Rodriguez was stopped by law enforcement after he was observed receiving a cardboard box from another individual on Aug. 27, 2012. At that time, Rodriguez attempted to flee from the vehicle but was eventually arrested. The box was determined to contain eight bricks of crystal methamphetamine. Upon receipt of the narcotics, Rodriguez was to deliver it to an unknown associate for further distribution within the United States. 

A subsequent analysis of the narcotics revealed that the net weight of the crystal methamphetamine was 8.159 kilograms and the narcotics had purity level of 98.5%

Rodriguez and Gonzalez-Cardenas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Both cases were investigated by the DEA and prosecuted by Assistant United States Attorney Juan Alanis. 

CORPUS CHRISTI, Texas - Rhonda Hartmann has pleaded guilty to presenting a false tax refund claim to the Internal Revenue Service (IRS), United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of IRS-Criminal Investigation (CI).

On Sept. 26, 2012, a federal grand jury in Corpus Christi indicted Hartmann with three counts of making or presenting fraudulent tax refund claims to the United States for tax years 2006, 2007 and 2008. The fraudulent claims for these three years totaled $560,124.

Today, at a hearing before Senior U.S. District Judge John D. Rainey, Hartmann admitted she filed tax returns which included fraudulent form 1099-OIDs and requested a refund of monies not actually withheld.

Judge Rainey has set sentencing for Aug. 19, 2013, at 5:30 p.m. At that time, Hartmann faces a sentence of up to five years in federal prison and a possible $250,000 fine.

Hartmann was permitted to remain on bond pending her sentencing hearing.

The case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Robert D. Thorpe Jr.  

McALLEN, Texas – Mexican Nationals Emmanuel Barrientos, 33, and Juan Trevino, 38, 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 a sentence of 168 months for conspiring to possess with the intent to distribute crack cocaine. Convicted of possessing with the intent to distribute crack cocaine, Trevino was sentenced to 82 months of federal imprisonment. Barrientos also received a five-year-term of supervised release.

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 led the crack distribution ring that included Trevino, Esteban Trevino and Alfredo Barrientos. 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. Today, Judge Alvarez also sentenced Jose Huerta, 29, and Eliza Escobar, 30, to 12 months in federal custody. Escobar also received a two-year-term of supervised release.

Nancy Cantu, 32, was sentenced to 48 months in federal prison followed by two years of supervised release by U.S. Chief District Court Judge Ricardo H. Hinojosa. Melissa Wolf, 48, received 33 months of incarceration from Judge Hinojosa followed by a three-year-term of supervised release. Israel Pena, 23, Luciano Lopez III, 46, and Nancy Clarke, 39, await sentencing before Judge Hinojosa on Aug. 16, 2013, at 9:30 a.m. Israel Pena, 23, is scheduled for sentencing on June 5, 2013, at 9:30 a.m. Barrientos and Esteban Trevino are scheduled for sentencing before Judge Alvarez on July 11, 2013, at 9:00 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.

LAREDO, Texas – A two-count indictment has been unsealed following the arrest of Laredo resident Santos Eliseo Carpio Jr., 33, on charges of conspiracy to possess with the intent to distribute methamphetamine and marijuana and possessing with intent to distribute methamphetamine, United States Attorney Kenneth Magidson announced today.

The sealed indictment was returned by a grand jury on Sept. 25, 2012, and unsealed late yesterday upon his arrest. He is expected to make an initial appearance before U.S. Magistrate Judge J. Scott Hacker on Wednesday, May 22, 2013.

The indictment alleges Carpio conspired to transport 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 1,000 kilograms or more of marijuana since July 2011. Carpio also allegedly possessed with the intent to distribute methamphetamine. If convicted, he faces a mandatory minimum sentence of 10 years and a maximum of life in prison and a possible $10 million fine.

The case is being investigated by the Drug Enforcement Administration. Assistant United States Attorney Elizabeth R. Rabe 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, Texas – Sergio Hinojosa, 55, a resident alien living in Laredo, has been arrested and charged with conspiracy to defraud the United States, theft of public money, mail fraud and wire fraud, United States Attorney Kenneth Magidson announced today.

The sealed criminal complaint was filed Friday, May 17, and was unsealed upon his arrest by federal authorities this morning. He is set for an initial appearance tomorrow morning before U.S. Magistrate Judge Diana Song Quiroga, at which time the government expects to request his detention without bond pending further criminal proceedings.

According to the complaint, Hinojosa allegedly conspired to defraud and committed theft of government property against the Texas Workforce Commission (TWC).

Hinojosa allegedly created a scheme in which he filed fraudulent unemployment insurance claims at the request of others. The complaint alleges he would file a claim by telephone, at which time he would create a fictitious last employer including the name of the fictitious employer, address, employment dates, hourly wages and telephone number. TWC would then mail a notice of application for unemployment benefits letter to the fictitious employer to verify employment at an address Hinojosa or others allegedly controlled. Upon receipt of the letter, Hinojosa would then respond by telephone or via fax allegedly purporting to be the employer, according to the allegations.

The complaint alleges TWC would, in turn, generate a debit card, funded through the Department of Labor, and mail the card to another address controlled by Hinojosa or others.

From approximately 2008 to on or about May 13, 2013, 119 suspected fictitious claims attributed to Hinojosa had allegedly been filed, according the complaint. The estimated loss to TWC from the suspected fictitious claims is approximately $721,000.

If convicted, he faces 20 years in federal prison for each of the mail and wire fraud charges, five years for the conspiracy charge and 10 years for theft of public money. Each charge also carries a $250,000 fine as possible punishment. 

The case is being investigated by Department of Labor – Office of Inspector General, FBI, the Texas Workforce Commission and Customs and Border Protection - Internal Affairs. Assistant United States Attorney Roberto Ramirez is prosecuting.

GALVESTON, Texas - Whitney Rohacek, 26, of Crystal Beach, has entered a plea of guilty to one count of fraud in connection with a major disaster, United States Attorney Kenneth Magidson announced today. 
 
Rohacek was indicted Jan. 30, 2013. Today, she acknowledged she submitted a false bill of sale for a travel trailer that contained a forged signature, as well as fraudulent title documents and receipts in order to obtain disaster assistance from Federal Emergency Management Agency (FEMA) in the wake of Hurricane Ike.

Sentencing has been set for Aug. 18, 2013, before U.S. District Judge Gregg Costa, at which time she faces up to 30 years in prison and a possible $250,000 fine.

Previously released on bond, Rohacek was permitted to remain on bond pending her sentencing hearing.

The investigation leading to the charges was conducted by the Department of Homeland Security – Office of Inspector General.  Assistant United States Attorney Andrew Leuchtmann is prosecuting this case. 

HOUSTON – Four men have been charged with conspiracy to possess and possession with the intent to distribute methamphetamine, United States Attorney Kenneth Magidson announced today along with Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA). Roberto Carlos Garza, 23, and Alexander Chavez, 34, both of Rio Grande City, and Luis Angel Mendoza-Estrella, 26, and Loya-Plancarte, 22, both of Morelia, Michoacan, Mexico, were arrested Saturday after an incident near the Houstonian Hotel on North Post Oak Lane in Houston.

On May 17, 2013, a confidential source met with Garza and Chavez and allegedly negotiated the delivery of 22 pounds of methamphetamine. The criminal complaint, filed today, alleges the source was to deliver $15,000 per pound upon delivery of the methamphetamine at a parking lot near the Houstonian Hotel.  

At approximately 12:58 p.m. the next day, according to the complaint, DEA agents observed a gray Honda CR-V arrive at the location driven by Chavez with Garza riding as a passenger. The Honda was allegedly followed by a gray Toyota Tundra driven by Mendoza-Estrella with Loya-Plancarte in the passenger seat. The Tundra parked, then allegedly backed out of the parking spot and drove around the lot slowly with Mendoza-Estrella and Loya-Plancarte allegedly observing other vehicles in the lot. 

The criminal complaint alleges that after the source approached the Honda, met with Chavez and observed the methamphetamine, agents attempted to execute the arrest of the four men. Identifying themselves as law enforcement officers, agents ordered them out of the vehicles. Mendoza-Estrella and Loya-Plancarte each complied and agents took them into custody without incident. 

However, Chavez allegedly attempted to flee, according to the allegations. He drove the Honda in reverse and struck another vehicle, then drove forward and accelerated rapidly towards two agents who were on foot, according to the complaint. One of the agents fired toward Chavez in an effort to stop him from hitting the agent with the vehicle.

Chavez was allegedly hit and the vehicle veered to the side and eventually came to a stop. Garza was taken into custody and Chavez was treated at the scene until an ambulance arrived and transported him to a hospital.

Agents subsequently found and seized three plastic containers containing a white crystalline substance believed to be methamphetamine from the rear area of the Honda, according to the complaint. The substance allegedly weighed approximately 15 pounds. 

With the exception of Chavez, the three men made their initial appearance in federal court this afternoon and were temporarily detained pending further criminal proceedings. Mendoza-Estrella and Loya-Plancarte will have a detention hearing on Wed. May 22, at 10:00 a.m. before U.S. Magistrate Judge Nancy Johnson. Garza will appear in court tomorrow at 10:00 a.m. before Judge Johnson for a counsel determination hearing.

If convicted, each faces at least 10 years and up to life in prison as well as a possible $10 million fine.  

The case is being investigation by the DEA with the assistance of the Harris County Sheriff’s Office. Assistant United States Attorney Rob Jones is prosecuting.

HOUSTON – James Wayne Ham, 36, of Coldspring, was arrested Sunday and charged today with the murder of a mail carrier with the United States Postal Service (USPS), United States Attorney Kenneth Magidson announced today along with Inspector in Charge Robert Wemyss, United States Postal Inspection Service (USPIS).

“The safety of our workforce and, ultimately, the surrounding communities is of paramount concern to me and this office.” said Magidson. “The killing of a Postal Service worker in the course of his/her official duties is a crime that affects us all. Anyone who is believed to have committed a crime against an employee of the United States will be prosecuted to the fullest extent of the law.”

The complaint was filed just minutes ago in federal court in Houston. Ham is expected to make an initial appearance before U.S. Magistrate Judge Nancy Johnson tomorrow morning, at which time the government is expected to request he be held without bond pending further criminal proceedings.  

“The USPIS takes very seriously any threats or violent acts committed against Postal Service employees,” said Wemyss. “We will work vigorously in conjunction with other law enforcement agencies to ensure responsible individuals are brought to justice and held accountable.”

The investigation began shortly following the receipt of a 911 call from the son of a USPS worker on Friday, May 17. He indicated he had been speaking with his mother via cell phone and heard two loud noises. His mother allegedly told him she had been shot. Shortly thereafter, the phone was disconnected, according to the complaint.

The complaint alleges the victim was shot on Friday shortly after delivering mail at Ham’s residence. The victim was on her normal rural delivery route in her personal vehicle. Ham allegedly shot her multiple times at close range with a .30/30 caliber rifle.

Ham then allegedly drove the vehicle to a nearby secluded area and set it on fire.

According to the complaint, the victim’s body was discovered Friday in her burning vehicle in San Jacinto County. Firefighters extinguished the flames and found the woman inside.

The investigation eventually led to Ham after it was discovered he had allegedly complained previously about not getting his mail delivered properly, according to the complaint.

Ham was located after an extensive manhunt and arrested without incident Sunday near his home in San Jacinto County. 

If convicted, he could potentially face the death penalty.  

The case is being investigated by the USPIS, San Jacinto County Sheriff’s Office, Texas Rangers, San Jacinto Constable Precinct 4, Texas Department of Criminal Justice, Montgomery County Sheriff’s Department, Texas Parks and Wildlife, San Jacinto County Fire Marshall and the San Jacinto County District Attorney’s Office. Also providing assistance was the Bureau of Alcohol, Tobacco, Firearms and Explosives and the volunteer fire departments in Point Blank and Cape Royale. Assistant United States Attorneys Ed Gallagher and Joe Magliolo are prosecuting.

Laredo, Texas – Carlos Alberto Gonzalez, 36, of Laredo, has been convicted of conspiracies to possess five kilograms or more of cocaine with the intent to distribute and international money laundering, United States Attorney Kenneth Magidson announced today.

A sealed indictment was returned by a grand jury on Nov. 6, 2012, which alleged a drug trafficking organization transported more than 200 kilograms of cocaine from 2010 to 2011, much of which was intercepted by authorities en route to Dallas. According to court documents, Gonzalez introduced a Drug Enforcement Administration (DEA) undercover agent to the source of supply in Mexico and assisted in the coordination efforts of the organization.

Gonzalez admitted he assisted in the transportation of drugs from Mexico to Dallas and the surrounding areas. He also pleaded guilty to conspiracy to commit international money laundering, admitting to the attempted transportation of $1,479,660 and a sub-machine gun with a suppressor from Atlanta, Ga., Nuevo Laredo, Mexico.

U.S. District Judge Diana Saldaña, who accepted the guilty plea today, has set sentencing for a date to be determined the future. At that time, Gonzalez faces a mandatory minimum sentence of 10 years and up to life in prison as well as a $10 million fine for the drug conspiracy and up to 20 years and a substantial fine for conspiracy to commit international money laundering. The United States is also seeking a money judgment in the amount of $5,303,660 based on the amount of cocaine and money transported by the organization during the span of the conspiracy.

The case is the result of a four-year Organized Crime Drug Enforcement Task Force investigation dubbed Operation Roadblock led by the DEA with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service. Assistant United States Attorneys James Hepburn and Elizabeth Rabe are handling the case.

HOUSTON – Yessica Chanel Cabanillas-Torres has been ordered to prison after smuggling nearly two kilograms of heroin in her luggage as she arrived at George Bush-Intercontinental Airport (IAH) from Ecuador, United States Attorney Kenneth Magidson announced today.Cabanillas-Torres, 21, of Sonora, Mexico pleaded guilty to conspiracy to possess with the intent to distribute heroin Feb. 7, 2013.

Today, United States District Judge Gray H. Miller, who accepted the guilty plea, handed Cabanillas-Torres a term of 36 months in federal prison. Cabanillas-Torres is expected to face deportation proceedings following her release from prison.

At the hearing, Cabanillas-Torres admitted that on Oct. 4, 2012, she arrived at IAH as a passenger aboard a flight from Quito, Ecuador. Her ticket indicated she was continuing her travel through Houston to Newark, N.J. Upon her arrival at IAH, Customs and Border Protection (CBP) officers questioned Cabanillas-Torres about her reasons for visiting the United States and examined her and her luggage for potentially prohibited items or contraband.

During the examination, she presented herself and two hard-sided suitcases to CBP officers for examination. Officers removed the contents of the suitcases and noticed the suitcases seemed to be unusually heavy. Officers then x-rayed the two suitcases at which time anomalies were discovered along the inner frame of each bag. Based on these anomalies and the weight of the suitcases, officers drilled into the two suitcases and discovered a brown powdery substance within the walls of each suitcase which field tested positive for the presence of heroin. Officers then dismantled one of the suitcases and found several small bundles of heroin inside with a gross weight of approximately 1.2 kilograms. Officers then left the second suitcase intact and sent it to the CBP forensic laboratory to be disassembled in order to remove the suspected heroin inside. The second suitcase was also found to contain bundles of heroin and  packaged in a similar fashion to the first suitcase. The total amount of heroin found was approximately 1.934 kilograms with a purity of approximately 82.7%

Cabanillas-Torres indicated she had been hired by an individual in Mexico to transport luggage from Quito to Newark in exchange for $4,000. She stated she did not know the identity of the person in Newark to whom she was supposed to deliver the luggage, but knew the luggage contained drugs and was intending to deliver these suitcases to another person in the U.S.

Cabanillas-Torres 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 Homeland Security Investigations and CBP. Assistant United States Attorney Arthur R. Jones is prosecuting the case.

LAREDO, Texas – Ji Hui Chen, 43, a merchant in downtown Laredo, has pleaded guilty to trafficking in counterfeit goods, United States Attorney Kenneth Magidson announced today along with Vincent Iglio, acting special agent in charge of Homeland Security Investigations (HSI).

Chen, a U.S. legal permanent resident who was born in Taiwan, is the owner of J Design located in downtown Laredo.

HSI special agents met with Chen and conducted undercover buys of counterfeits goods at Chen’s place of business. Approximately 5,722 counterfeit items of numerous styles and brands of handbags, wallets, hats, sunglasses, shirts and luggage, all of which were counterfeit, were seized over the course of the investigation. Brands included Burberry, Cartier, Chanel, Chi, Coach, Dooney and Bourke, Gucci, Hermes, Jimmy Choo, Louis Vuitton, Michael Kors, Nike, Oakley, Polo, Prada, Rayban, Rolex, Tory Burch and Dolce & Gabanna. 

“Intellectual property theft is not a victimless crime and should concern every American,” said Iglio. "Enforcing our nation's counterfeiting laws is about protecting our economy, while also shielding the unwitting consumer from sub-par and/or unsafe merchandise and upholding the intellectual property rights of those who play by the rules.”

At sentencing, to be set at a later date, Chen faces up to 10 years in federal prison as well as a $250,000 fine.

The case was investigated by HSI. Assistant U.S. Attorney Roel Canales is prosecuting the case.  

McALLEN, Texas – Jorge Eduardo Lopez, 21, of Rio Grande City, has been sentenced to 135 months imprisonment following a conviction for possession with intent to distribute marijuana, United States Attorney Kenneth Magidson announced today.

Lopez pleaded guilty on Jan. 1, 2013, admitting he transported 296 kilograms of marijuana north from the Rio Grande River near La Grulla. As he drove the load vehicle north, Border Patrol agents in marked units attempted to stop him. He traveled at a high rate of speed trying to evade arrest. Eventually, he crashed into one Border Patrol unit, damaging the vehicle and endangering the agent inside.

Today, U.S. District Judge Micaela Alvarez sentenced Lopez to the 135-month term which will be immediately followed by four years of supervised release. Judge Alvarez also ordered that Lopez pay more than $26,000 in restitution for the damaged vehicle and agent’s hospital bill.

Lopez has been in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

This case was investigated by Border Patrol, FBI and the Drug Enforcement Administration. Assistant United States Attorney Kristen Rees prosecuted the case.

CORPUS CHRISTI, Texas – Alberto Lopez, aka Alberto Lopez-Reyna, 40, of Roma, has been ordered to prison for nearly seven years following his conviction of conspiracy to possess with the intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Lopez entered into a written plea agreement Wednesday, Jan. 30, 2013.

Today, Senior U.S. District Judge Janis Graham Jack, who accepted the guilty plea, handed Lopez a term of 80 months in prison.  Lopez will also be required to serve a term of five years of supervised release following completion of the prison term.

From November 2010 until his arrest in December 2012, Lopez facilitated the transportation of large amounts of marijuana concealed in the hulls of altered shallow-bottom fishing boats from Port Mansfield to Corpus Christi via the intra-coastal waterway in an effort to circumvent the United States Border Patrol checkpoints in Falfurrias and Sarita.

He admitted his role in supplying various loads of marijuana over the course of the conspiracy and mapping out boat docks in the Corpus Christi area that would be used to retrieve the marijuana-laden vessels for further transportation to Houston. The government detailed how four loads of marijuana were intercepted and a total of 1,600 kilograms of marijuana were seized over the last two years. 

Members of the conspiracy who served as drivers include Lombardo Zarate, 50, Rogelio Mendoza, 38, Glen Dial, 57, Luz Ramirez, 26, and Hector Perez-Gonzales, 40, all of whom have previously pleaded guilty before U.S. District Judges in Corpus Christi and have either been sentenced to terms of imprisonment at the Bureau of Prisons. Also sentenced in this case was Michael “Mickey” Pena, who was convicted by a jury in February 2013. He was sentenced last month to 97 months in prison.

Lopez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
  
This case is the result of a two-year investigation led by Homeland Security Investigations with the assistance of the Kingsville Narcotics Task force. Assistant United States Attorney Jeffrey D. Preston is prosecuting the case.

FORT WORTH, Texas - Phillip Monroe Ballard, 71, has been charged with murder for hire, United States Attorney Kenneth Magidson of the Southern District of Texas announced today.

The indictment, returned just a short time ago, alleges Ballard solicited the murder for hire of a U.S. District Judge in the Northern District of Texas. 

Ballard, currently in federal custody on unrelated charges in the Northern District of Texas, will remain in custody pending further criminal proceedings in this case. He is expected to appear before a U.S. Magistrate Judge in Fort Worth in the near future.

If convicted, Ballard faces up to 20 years in prison and a $250,000 fine.

The case is being investigated by the FBI. Assistant U.S. Attorneys Mark McIntyre and Craig Feazel are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

McALLEN, Texas – Four Mexican nationals who had illegally entered the U.S. and possessed 40 mm grenades and a launcher have been ordered to federal prison, three of whom received the maximum sentences allowed by law, United States Attorney Kenneth Magidson announced today. Juan Ricardo Martinez-Cardenas, 38, Daniel Blanco-Avila, 23, Martin Martinez-Medina, 18, and Jose Lopez-Cerda, 24, entered guilty pleas on March 5, 2013, for possessing a destructive device.

Today, Chief U.S. District Judge Ricardo H. Hinojosa sentenced Martinez-Cardenas, Blanco-Avila and Lopez-Cerda each to 120-month terms of federal imprisonment. In arriving at its sentence, Judge Hinojosa noted that although their guideline recommendations amounted to life in prison, the court was restricted to the 10-year-terms by statute. As to Martinez-Medina, the court downwardly departed to a 62-month-term of federal imprisonment, taking into consideration threats made against him for not following orders. As illegal aliens, they are all expected to face deportation proceedings following their release from prison.

Evidence showed that Martinez-Cardenas had been stopped in a vehicle with a four 40 mm grenades, an improvised 40 mm grenade launcher, four AK-47 type rifles and corresponding magazines loaded with 2,791 rounds of ammunition. Through subsequent investigation it was determined that Blanco-Avila, Martinez-Medina and Lopez-Cerda had also been involved in the transportation and movement of the munitions.

All four entered the United States illegally and then received the firearms and munitions which were all separately smuggled into the United States. The weapons were brought in by the Zetas, for whom these four defendants worked, in order to avoid the Gulf Cartel. The grenades, grenade launchers and firearms and ammunition were then to be smuggled back into to Mexico for use fighting in Miguel Aleman, Tamaulipas, Mexico.

All of the men have been on detained without bond since the time of their arrest where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
 
The investigation was conducted by the Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and Border Patrol. The case was prosecuted by Assistant United States Attorney Steven Schammel.

HOUSTON - Tyrone Reid, 22, a citizen of Dominica residing in Houston, has been ordered to prison following his conviction in a conspiracy involving numerous co-defendants who lied to federal firearms dealers in the purchase of firearms, United States Attorney Kenneth Magidson announced today. Reid was convicted Feb. 19, 2013, after three days of trial and approximately two hours of deliberation.

Today, U.S. District Judge David Hittner, who presided over trial, handed Reid a 168 month sentence - 60 months for the conspiracy conviction as well as 60 and 48 months on each of the two convictions of making false statements to a federal firearms licensee. All counts are to run consecutive to each other for a total sentence of 14 years in federal prison. At the hearing today, Judge Hittner found Reid to be connected to known drug traffickers in the Virgin Islands and the most culpable in this criminal conspiracy. In handing down the sentence, Judge Hittner also ordered that Reid, not a U.S. citizen, to be immediately deported following completion of his prison sentence. 

“The sentencing today sends a clear message that Illegal firearms trafficking will not be tolerated,” said Magidson. “We will continue to make every effort to prevent the illicit flow of firearms in our country.”

The case began when officers of Homeland Security Investigations (HSI) and the Virgin Islands Police Department (VIPD) executed a search warrant at the home of a known drug dealer in the Virgin Islands which resulted in the discovery of drugs and several firearms. These firearms were found to have been purchased by individuals in Houston at Reid’s direction. 
 
The evidence presented at trial demonstrated Reid would induce others to claim they were the actual buyer of the firearms, even though he supplied the money and immediately took possession from the buyer. Testimony revealed that none of the purported buyers kept any of the firearms they purchased, many which were later found in crime scenes, both in the continental United States and in the Virgin Islands.

Western Union receipts sent from the Virgin Islands to the United States reflected more than $60,000 in payments received by Reid or at his direction. Further, three of the firearms were recovered by agents in a search at the home of one of Reid’s associates, who was also linked to some of the money sent to the Virgin Islands to Reid here in Houston. Evidence demonstrated that a total of seven firearms were seized in the Virgin Islands, six of which were seized from crime scenes, including a homicide. Two other firearms associated with this conspiracy were found in New Jersey crime scenes, including an aggravated armed robbery. 

Testimony revealed that more than 30 firearms were identified with this lying and buying conspiracy.

Reid’s grandmother, who had traveled to Houston to testify, told the jury that Reid had sent guns to her in the Virgin Islands. Reid took the stand on his own behalf and then called his grandmother a liar.

Reid will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Reid’s co-conspirators in Houston and another in the Virgin Islands were all also convicted and sentenced for their roles in the scheme.
 
“The successful resolution to this case would not have occurred without the outstanding inter-agency cooperation of HSI, VIPD, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Customs and Border Protection, Houston Police Department - Major Offenders, Harris County Sheriff’s Office and the U.S. Postal Service,” Magidson said. “By working together, we could ensure the investigation progressed and five people were ultimately held accountable for their criminal actions.”

Assistant United States Attorneys Joe Magliolo and Megan Paulson prosecuted the case.

HOUSTON – Jason Maclaskey, 33, has been charged with conspiracy, theft of government funds and aggravated identity theft related to his participation in a scheme to use stolen identities to file fraudulent tax returns, United States Attorney Kenneth Magidson announced today.  

The 23-count indictment, returned March 6, 2013, charges Maclaskey, of Spring, as well as Heather Dale, 23, of Grant, Ala., and Omar Butt, 29, of Brooklyn, N.Y. All are charged with one count of conspiracy and one count of theft of public money. Dale and Butt are charged with seven and two counts, respectively, of aggravated identity theft, while Maclaskey faces nine counts on that charge. Maclaskey was further indicted on one count of access device fraud as well as one count each of being a fugitive in possession of a weapon and possession of a stolen weapon. 

The three defendants were also indicted in Nevada for a similar fraud scheme and are currently pending trial there as well. 

Maclaskey will make his initial appearance at 2:00 p.m. today before U.S. Magistrate Judge Stephen Smith, at which time the government is expected to request he be detained pending further criminal proceedings in this case. Dale and Butt made appearances last week and were both permitted release upon posting bond.

According to the indictment, the defendants unlawfully obtained names, dates of birth and Social Security numbers from 371 taxpayers and filed false tax returns in their names in 2009. The defendants allegedly used this information to also set up fraudulent bank accounts at Inter National Bank and through NetSpend debit cards in the taxpayers’ names and then directed the tax refunds to these accounts. The indictment alleges they withdrew this money using the NetSpend debit card at ATMs and by making purchases at various retail stores. Through this conspiracy, the defendants claimed a total of more than $1.4 million in false tax refunds and succeeded in withdrawing approximately $300,000.

Additionally, the indictment alleges Maclaskey was in possession of 10 firearms, one of which was stolen, on Nov. 1, 2011. At the time these weapons were seized, Maclaskey was a fugitive.

If convicted of conspiracy, all face up to five years in prison and a maximum of 10 years for theft of public money. Both of those convictions also carry a possible $250,000 fine. Maclaskey faces 10 years and $250,000 fines on each of the access device fraud and weapons counts, if convicted. For the aggravated identity theft charges, each defendant faces a mandatory two-year-term as to each count, which must be served consecutively to each other and to the other sentences imposed.

The investigation that led to this indictment was conducted by agents from Internal Revenue Service – Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Sharad S. Khandelwal 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, Texas– U.S. Customs Broker Alejandro Santos, 32, has entered a guilty plea in relation to the smuggling of goods into the country, United States Attorney Kenneth Magidson announced today. Santos pleaded guilty to entry of goods by false classification, smuggling goods into the United States and making a false statement to a Homeland Security Investigations (HSI) agent late yesterday afternoon before U.S. Magistrate Judge J. Scott Hacker.

Santos is licensed by Customs and Border Protection (CBP) to file entry documents for commercial shipments on behalf of importers. His responsibilities included generating entry packages, describing, classifying and valuating shipments for importation into the United States and submitting appropriate payments to CBP on behalf of his clients for any duties, taxes and fees owed, if any.

Santos used a scheme to defraud the government by falsifying the country of origin on goods imported into the United States. The falsification allowed him to benefit from the North American Free Trade Agreement preferential treatment program, resulting in zero duties and taxes owed. In truth, duties and taxes should have been paid to the U.S. Santos would then collect money from his clients to cover the correct amount of duties and taxes that should have been paid to CBP. Santos then failed to turn over the money to CBP, keeping the monies for himself.

Santos admitted to importing various goods into the United States made in India and Italy, while falsely claiming the goods were made in Mexico. He would then collect money from his clients (importers of record) and keep the money.

He faces up to a maximum sentence of twenty years in federal prison as well as a $250,000 fine.

The case was investigated by HSI Assistant U.S. Attorney Roel Canales is prosecuting the case.  

BROWNSVILLE, Texas - Juan Roberto Rincon-Rincon, one of the highest ranking members of the Gulf Cartel, has been ordered to federal prison for life following his convictions related to a large drug trafficking conspiracy, United States Attorney Kenneth Magidson announced today along with Vincent Iglio, acting special agent in charge of Homeland Security Investigations (HSI) and Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA). A jury convicted Rincon following seven days of trial and less than two hours of deliberation on Friday, Sept. 28, 2012.

Today, U.S. District Judge Hilda G. Tagle, who presided over the trial, ordered Rincon to serve a life sentence in federal prison. At the hearing, the court found that Rincon-Rincon was accountable for the equivalent of 10,697,100 kilograms of marijuana as his offense conduct. His sentence was enhanced because Rincon-Rincon used dangerous weapons such as grenades, rocket launchers, homemade cannons and automatic weapons during the conspiracy. The court also enhanced his sentence because Rincon-Rincon was a leader/organizer of the criminal activity, used violence, used body armor, bribed law enforcement officials, imported methamphetamine and because his primary employment consisted of being a lieutenant and/or plaza boss for the Gulf Cartel. Rincon-Rincon was further ordered to pay a $1 million fine as to each of the two counts of conviction. In handing down the sentence, Judge Tagle noted that Rincon-Rincon had made the conscious choice to participate in the conspiracy and further commented to him that “you enjoyed the fruits of that lifestyle. Now, it is time for you to deal with the consequences.”

“HSI agents have made it a top priority to bring stability and security to this border region and today’s sentencing of Rincon-Rincon is a prime example of that,” said Iglio. “HSI will continue its efforts in partnership with our federal, state and local partners to combat cartel related crimes in an effort to achieve these significant results.”

Rincon, 42, from Matamoros, Mexico, was convicted of conspiracy to possess with the intent to distribute as well as conspiracy to import into the United States more than five kilograms of cocaine and 1000 kilograms of marijuana from January 2002 until his capture on Oct. 26, 2011.

“Juan Roberto Rincon-Rincon, one of the highest ranking members of the Gulf Cartel, posed a threat to the citizens of both the United States and Mexico,” said Peña. “This case highlights the work of law enforcement in the Rio Grande Valley in keeping our border communities safe and ensuring Mexican drug traffickers do not find refuge in the United States.”

Evidence at trial proved that more than 9,000 kilograms of marijuana was seized by Border Patrol during the months of September and October 2011 when Rincon-Rincon was proven to be the Plaza Boss of Rio Bravo, Tamaulipas, Mexico. During his time in that leadership role, the money derived from the Gulf Cartel was more than $20 million. As the plaza boss, which is the lead representative for the Gulf Cartel in a particular region or town, Rincon-Rincon, aka Primo or X-5, was in charge of maintaining control of the region to ensure safe passage of the Gulf Cartel’s narcotics and ensuring no narcotics passed through his area of responsibility without his approval or knowledge.

Testimony at trial indicated that control of the plaza was accomplished by bribing Mexican law enforcement, some elements of the Mexican military, the news media and elected public officials. Additionally, testimony indicated that control of the plaza was also accomplished by secretly and illegally wiretapping the phones at law enforcement offices, public offices and phones, hotels and news media outlets. License plate readers and cameras were also used in order to detect infiltration of rival cartels or the movements of the Mexican military, according to testimony. Rincon-Rincon also had at least 100 individuals at his disposal armed with semi-automatic rifles, body armor, grenades, .50 Caliber automatic rifles and some had rocket launchers.

Testimony at trial further revealed that beginning in approximately 2000, Rincon-Rincon began working his way up the ranks of the Gulf Cartel through his associations with other known Cartel members. Testimony indicated that in 2000, Rincon-Rincon was a police officer in Matamoros, Tamaulipas, patrolling its streets with Jorge Eduardo Costilla-Sanchez, the eventual leader of the Cartel Del Golfo. During this time, Rincon-Rincon and Costilla were in charge of drug houses in Matamoros, Tamaulipas, according to testimony. Rincon-Rincon was eventually one of Costilla’s most trusted associates. In 2003, Osiel Cardenas-Guillen was arrested and Jorge Eduardo Costilla-Sanchez then took over the leadership of the Gulf Cartel. The jury heard testimony that many individuals involved in the drug transactions would have to often go through Rincon-Rincon to relay information to Costilla in order to receive authorization to transport drugs, to make bribe payments and to negotiate drug terms. Rincon-Rincon would also receive large amounts of bulk cash currency that were proceeds from the sale of large amounts of Gulf Cartel narcotics.

During his association with the Cartel, Rincon-Rincon was also in charge of a “Polla,” which involves the collection of money for the purchase of cocaine and its distribution to those who contributed to it. Several co-defendants testified that Rincon-Rincon would collect between $500 and $700 thousand from Gulf Cartel conspirators and then return with 100 to 120 kilograms of cocaine which would then be imported into the U.S. by Gulf Cartel associates. According to testimony, Rincon-Rincon conducted the “Polla” at least once per month from approximately 2003 to 2010.
 
An internal power struggle later developed which eventually led to a fire fight on Oct. 25, 2011, at which time another plaza boss was killed. As a result, Rincon-Rincon and others fled into the United States and were captured by law enforcement on Oct. 26, 2011.

The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, FBI, Border Patrol, Texas Department of Public Safety, Cameron County Sheriff’s Office and police departments in Brownsville and Progresso. Assistant United States Attorneys Angel Castro and Jody L. Young prosecuted the case.

HOUSTON - Mikkail Antonio Nolasco Jimenez, 27, has been arrested and charged with importing cocaine into the United States and conspiracy to possess with the intent to distribute it, United States Attorney Kenneth Magidson announced today. Jimenez, a citizen of the Dominican Republic, was arrested at Bush Intercontinental Airport (IAH) after it was determined he had allegedly ingested 53 pellets containing cocaine.

The criminal complaint filed today alleges that on Saturday, May 11, 2013, Jimenez arrived aboard a flight from Port of Spain Trinidad and Tobago bound for New York. Homeland Security Investigations (HSI) agents became suspicious when Jimenez provided inconsistent statements. The investigation resulted in the discovery of anomalies in his body resembling pellets believed to contain a controlled substance. Jimenez was transported and admitted to an area hospital.

Jimenez allegedly expelled a total of 53 pellets, which contained a substance that field-tested positive for cocaine, according to the complaint.

Jimenez made his made his initial appearance this afternoon before U.S Magistrate Judge Stephen Wm. Smith, at which time he was ordered into custody pending a detention hearing, set for Thursday, May 16.

Upon conviction, Jimenez faces a mandatory minimum of five and up to a 40 years in prison on each of the two counts.

The investigation leading up to the charges was conducted by Homeland Security Investigations and Customs and Border Protection. Assistant United States Attorney Stuart A. Burns is prosecuting the case.

McALLEN, Texas - Pedro Garcia-Morales, a legal permanent resident from Cuba living in Donna, has been found guilty of possession of more than 15 unauthorized access devices with intent to defraud, United States Attorney Kenneth Magidson announced today. The McAllen federal jury returned its verdict just a short time ago following one day of trial and less than two hours of deliberation. 
           
During trial, the government contended Garcia-Morales, 41, knowingly possessed more than 500 account numbers linked to credit and debit cards belonging to people from all over the United States.

On Jan. 11, 2013, a search warrant was executed at the defendant’s home, at which time agents discovered two laptops, two flash drives, a credit card encoder and 49 gift/prepaid cards that had been encoded with stolen/unauthorized debit or credit card account numbers. The government proved Garcia-Morales knew the cards were to be used to make fraudulent purchases.

In fact, testimony of witnesses established that over a two-year period, Garcia-Morales used international hacking websites to purchase hundreds of account numbers. He then wired money internationally to hackers in China, Vietnam, Romania and the Ukraine. Encoding software on his laptops and flash drives was used to transfer the purchased account numbers on to the magnetic strips of gift/prepaid cards. The cards could then be used at retail stores to make seemly legitimate purchases. However, use of the cards unlawfully charged those transactions to others’ credit and debit card accounts.

U.S. District Judge Micaela Alvarez, who presided over the trial, has set sentencing for July 30, 2013, at 2:00 p.m., at which time he faces up to 10 years in prison and a possible $250,000 fine. He has been in custody since his arrest where he will remain pending the sentencing hearing.

U.S. Secret Service and the Hidalgo County Sheriff’s Office investigated. The case is being prosecuted by Assistant United States Attorneys Kristen Rees and Patricia Rigney.

CORPUS CHRISTI, Texas - Sylvia Salinas Ramirez, of Driscoll, and Debra Jean Velasquez, of Robstown, have surrendered to authorities following the return of an indictment alleging they perpetrated a scheme to defraud the Texas Medicaid program through fraudulent home health billings, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott.

The 14-count indictment was returned Wednesday, May 8, 2013. Ramirez, 51, and Velasquez, 41, were taken into custody this morning and are expected to make an appearance before U.S. Magistrate Judge Janice Ellington this afternoon, at which time the issue of bond will be decided.

Ramirez and Velasquez are charged with one count of conspiracy to commit health care fraud, six counts of health care fraud, four counts of wire fraud and three counts of aggravated identity theft. 

The indictment alleges the women were employed by the Corpus Christi office of MRNG Inc. doing business as Caring Touch Home Health. During that time, Ramirez and Velasquez allegedly submitted false and fraudulent bills to Medicaid and the managed care organizations known as Evercare of Texas LLC and Superior Health Plan Inc. for home health services that had not been provided. Evercare and Superior received funds from Medicaid to manage the home health care of Medicaid beneficiaries. According to the indictment, from on or about Aug. 1, 2009, through on or about June 15, 2010, Ramirez and Velasquez created false and fraudulent time sheets for current and former Caring Touch employees for home health services that were not provided. The indictment accuses Ramirez and Velasquez of then fraudulently billing Medicaid, Evercare and Superior in the name of Caring Touch for those non-existent services.

The indictment also alleges that in order to personally profit from their fraudulent billings, Ramirez and Velasquez allegedly created payroll records from the fraudulent time sheet which they sent to Caring Tough’s payroll staff. According to the indictment, Ramirez and Velasquez obtained the payroll checks generated from the false and fraudulent time records, forged the signatures of the payees, then cashed the checks and divided the money among themselves. The indictment does not accuse Caring Touch or the employees whose names were used on the false time sheets and checks of any wrongdoing. 

The indictment alleges that from or about Aug. 1, 2009, through on or about June 15, 2010, Ramirez and Velasquez submitted and or caused others to submit approximately 628 false and false and fraudulent claims in the approximate aggregate sum of $345,393.41 for home health services which were not provided. As a result, Texas Medicaid, Evercare and Superior paid the approximate aggregate sum of $155,127.72, according to allegations.

Conspiracy to commit health care fraud and each of the six counts of health care fraud carry a maximum punishment of 10 years in federal prison without parole, upon conviction, while the four counts of wire fraud each carries a possible 20 year sentence. All of these charges also include a possible $250,000 fine. If convicted of aggravated identity theft, the defendants will serve a mandatory two-year additional prison term on each count which must be served consecutive to any other prison sentence imposed.

The charges were the result of a joint investigation conducted by officers and agents of the Corpus Christi Police Department, the FBI, Department of Health and Human Services - Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney Jeffery Preston are prosecuting the case.

A defendant is presumed innocent unless convicted through due process of law.

Houston – Shirley M. Carrington has been ordered to prison following her conviction of willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI). Carrington pleaded guilty Jan. 7, 2013.

Today, U.S. District Judge Vanessa Gilmore handed Carrington a sentence of 18 months in federal prison to be followed by one year of supervised release.

According to the written plea agreement filed in the record of the case, Carrington admitted she willfully prepared a false income tax return for a husband and wife that included a claim for losses from an alleged janitorial service sole proprietorship the taxpayers did not have. Carrington also admitted the return she prepared for the couple also claimed a false deduction for unreimbursed employee expenses and a false deduction for other miscellaneous deductions. Carrington admitted that the tax loss to the United States on the false tax return for which she pleaded guilty was $10,962.

Carrington further admitted in the plea agreement that the eight tax returns underlying the eight counts in the indictment in the case all claimed false losses from alleged janitorial sole proprietorships that none of the taxpayers had. Her relevant conduct, which is the total tax loss in the case, for purposes of sentencing was $199,472. 

This matter was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.   

HOUSTON – Six Houston residents, convicted for their roles in a multi-drug conspiracy operating in and around the Houston area over the course of approximately two years, have been ordered to serve time in federal prison, United States Attorney Kenneth Magidson announced today.

A federal jury convicted Thuong Thomas-More Vo, 37, Steven Marshal Boehning, 33, and Hung Van Dang, 36, on Aug. 29, 2012, following eight days of trial and approximately 10 hours of deliberations. Nanthato Phetphongsy, 36, Tay Luangpanh, 39, and Sourivong Nanthavongdouangsy, 31, had previously entered pleas of guilty.

At the lengthy hearing that concluded late Friday, U.S. District Judge Lee H. Rosenthal handed Vo a sentence of 109 months, while Boehning and Dang will serve respective terms of 38 and 36 months in federal prison. Phetphongsy, Luangpanh and Nanthavongdouangsy were ordered to serve 102, 78 and three months in prison, respectively. In handing down the sentence, Judge Rosenthal called their actions a “sinister scheme.” With the exception of Nanthavongdouangsy, who received a two-year-term of supervised release, the remaining five were further ordered to serve three years of supervised release following completion of their prison sentences.   

A total of 16 people were charged in two separate indictments in relation to this case. To date, all have been convicted and 13 have now been ordered to prison. 

The investigation targeted a Vietnamese and Laotian drug trafficking organization operating in Houston. The group primarily distributed ecstasy, but was also involved in the distribution of cocaine and hydroponic marijuana. Vo, among others in this case, was affiliated with the Houston-based Asian gang, known as NCP or “Northside Chink Posse.”

At trial, the government presented evidence that Vo, Boehning and Dang dealt with a now deceased drug trafficker who supplied them with ecstasy. Vo, who has a prior federal ecstasy trafficking conviction, had served as the broker for that drug trafficker and introduced Boehning and Dang to him. Vo approved the quantities and prices of ecstasy sold to Boehning and Dang who would then sell the ecstasy to their clients.

Three others who also had dealings with the same ecstasy trafficker testified at trial and described the methods used by the dealer. Two, who contended they were customers, described where they would meet to conduct drug transactions with this dealer and testified as to the coded language they used over the telephone when speaking about drug trafficking. The third person stated he was the supplier and indicated he had provided thousands of ecstasy pills to the dealer during the course of this conspiracy.

An FBI agent provided additional testimony as to conversations that took place between the dealer and Vo, Boehning and Dang about their drug trafficking business.

At the time of their pleas, Phetphongsy and Luangpanh each admitted their involvement in the distribution of significant quantities of ecstasy in and around the Houston area.

The case was the result of a two-year Organized Crime Drug Enforcement Task Force investigation dubbed Operation Iron Hide, led by the FBI and assisted by the Houston Police Department. The case was prosecuted by Assistant United States Attorneys Robert Johnson and Rob Jones.

HOUSTON – Yevette Lauren Walton and Lakisha Lashell Rogers have entered pleas of guilty for conspiring to submit fraudulent tax refund claims in the names of 53 stolen identities during the current 2013 tax season, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI). Walton and Rogers were prosecuted as part of the national Stolen Identity Refund Fraud (SIRF) initiative that has resulted in arrests throughout the United States in recent months. 

“These SIRF cases exemplify the IRS’s intense focus on the pursuit of refund fraud and identity thieves,” said Cruz. “We will continue to work in partnership with law enforcement agencies and the U.S. Attorney’s Office to hold those accountable that engage in identity theft and systematically defraud the government and the taxpaying public.”

Today, Walton and Rogers admitted that between Feb. 15, 2013, and Feb. 27, 2013, they met with a tax return preparer, interviewed him and concluded he could prepare and electronically file false tax refund claims for them. Walton and Rogers provided this person with approximately 37 names, Social Security numbers and other means of identification. Walton and/or Rogers told the tax return preparer the names were “good” because they had previously been used to get refunds.

The women also provided automated teller machine debit card routing numbers. This way, the refunds, which were expected to total approximately $220,000, could be credited to the cards and easily used to withdraw funds in an untraceable manner. Walton and Rogers then engaged in a number of telephone conversations with the tax return preparer to check on the status of the refund claims.

Upon their arrests, Walton and Rogers had another 16 names and other means of identification on them intended to be used to file a second set of false and fraudulent refund claims approximately totaling an additional $200,000. Despite Walton’s and Rogers’ efforts, prompt action by federal law enforcement prevented any actual loss to the National Treasury from the use of the 53 stolen identities during 2013. However, actual losses of about $60,000 and attempted losses of approximately $120,000 have been traced to fraudulent tax refunds in 2012.

U.S. District Judge Lee H. Rosenthal, who accepted the guilty pleas, has set sentencing for Aug. 21, 2013, at which time Walton and Rogers face up to 10 years in prison and a $250,000 fine. Both women were arrested March 8, 2013, and have been in custody since that  time where they will remain pending sentencing.

The investigation leading to these charges was conducted by IRS-CI and the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.

HOUSTON – An alleged general of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.

Charles Lee Roberts, aka “Jive,” 67, of Beaumont, 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, Roberts and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Roberts and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.  

By pleading guilty to racketeering charges, Roberts 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 white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

At sentencing, scheduled for Sept. 26, 2013, at 2:00 p.m., Roberts faces a maximum penalty of life in prison.

Roberts is one of 35 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. Ben Christian Dillon, 40, and Chad Ray Folmsbee, 30, both of Houston; and James Marshall Meldrum, 40, and Chrisopher Morris, 37, both of Dallas, each previously pleaded guilty to racketeering conspiracy for their roles in the criminal enterprise.

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; Texas Department of Criminal Justice – Office of Inspector General; Sheriff’s Offices in Montgomery, Harris, Atascosa, Orange and Waller Counties; Houston Police Department-Gang Division; police departments in Alvin, Carrollton and Mesquite; and District Attorney’s Offices in Montgomery and Atascosa Counties.  

The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.

LAREDO, Texas - Elizabeth Nevarez, 44, of Laredo, has been ordered to prison for nearly five years following her conviction of one count of money laundering, United States Attorney Kenneth Magidson announced today. Nevarez entered into a written plea agreement on Monday, Nov, 5, 2012.

Today, U.S. District Judge Diana Saldaña, who accepted the guilty plea, handed Nevarez a sentence of 57 months in prison for her role in laundering drug proceeds. At a lengthy sentencing hearing today, arguments from the defense and prosecution were presented. After careful consideration of the presentence report and arguments of counsel, Judge Saldaña noted that Nevarez “benefited to a great extent from these drug proceeds.” Judge Saldaña ordered the forfeiture of Nevarez’s interest in a residence located on the 6300 block of Springtime Drive in San Antonio and ordered a money judgment in the amount of $98,630.45.  Nevarez was also ordered to pay a $3,000 fine and be required to serve a term of three years of supervised release following completion of the prison term.

In the guilty plea, Nevarez admitted to assisting the Ibarra Drug Trafficking Organization in May of 2010 after the arrest of Juan Ramon Ibarra Sr. and two other co-conspirators for cocaine distribution. The Ibarra family approached Nevarez in her capacity as regional manager at AA Best Bail Bonds to obtain bond for Ibarra Sr. During these discussions, Nevarez suggested the Ibarras transfer three valuable Laredo properties into her name in order to avoid seizure by the federal government. Nevarez forged the dates on the warranty deeds of the three properties to make it appear as though they were transferred prior to Ibarra Sr.’s arrest.

Shortly after this transfer, Nevarez sold the properties for substantially less than their market value. She then transferred the proceeds into her personal bank accounts and purchased a house in San Antonio. Specifically, Nevarez admitted to these activities as they related to a residence located on the 400 block of Blue Lake Drive, a property located in the upscale Lakeside community of Laredo. The residence was constructed by Ibarra Sr. with drug proceeds in 2005.

Nevarez was allowed to remain on bond and voluntarily surrender at a later date. 

The case is the result of a two-year investigation led by the Drug Enforcement Administration with the assistance of Organized Crime Drug Enforcement Task Force - Financial Investigation and Homeland Security Investigations. Assistant United States Attorneys James Hepburn, Elizabeth Rabe, and Mary Ellen Smyth are prosecuting the case.

HOUSTON – Godwin Chiedo Nzeocha, 56, a naturalized United States citizen originally from the Federal Republic of Nigeria, has been sentenced to 109 months in federal prison for his role in the multi-million dollar City Nursing health care fraud scheme, United States Attorney Kenneth Magidson announced today.

Nzeocha entered a guilty plea on Oct. 19, 2012 to one count of conspiracy to commit health care fraud and one count of money laundering. Nzeocha is the 8th person to be convicted in the $45 million Medicare and Medicaid health care fraud conspiracy.

Today, U.S. District Judge Melinda Harmon, who accepted the guilty plea, handed Nzeocha the more than nine-year sentence after giving him credit for 12 months in custody in the Federal Republic of Nigeria. Judge Harmon cited the huge financial loss to the Medicare program as a significant factor in her sentencing decision, along with the use of mass-marketing and the defendant’s role as a manager and supervisor at the fraudulent physical therapy clinic. Nzeocha was further ordered to pay more than $26 million in restitution to Medicare and Medicaid, jointly and severally with his convicted co-conspirators. As part of his October plea, Nzeocha agreed to forfeit $1,098,320 given to him by the owner of City Nursing, to the United States.

According to the plea agreement, Nzeocha left the United States in 2009 to avoid arrest after receiving a telephone call from a City Nursing co-conspirator the day Umawa Imo, owner of City Nursing Services of Texas Inc., was arrested. Nzeocha admitted he had an agreement with Imo to sign his name on City Nursing patient documents as the provider of physical therapy services that he knew he was not qualified nor did provide to Medicare beneficiaries. The documents included blank treatment data forms, progress notes and daily physical therapy records. Nzeocha further admitted to knowing Imo was buying Medicare beneficiary information from recruiters and paying Medicare beneficiaries cash in order to bill for physical therapy services that were not provided. Nzeocha received approximately $1,098,320 from City Nursing.

Between Dec. 3, 2007, and June 26, 2009, when Nzeocha worked at City Nursing, the company billed Medicare and Medicaid for approximately $35,819,508 worth of physical therapy services that were not provided and received approximately $26,233,122 as payment for those services from Medicare and Medicaid.

Nzeocha is the 8th person to be convicted in relation to the City Nursing health care fraud scheme, including Imo, who was sentenced to 327 months in federal prison.

Nzeocha will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. 

This case has been investigated by the FBI, Internal Revenue Service-Criminal Investigation, the Department of Health and Human Services-Office of Inspector General and the Texas Attorney General's Office-Medicare Fraud Control Unit. Assistant United States Attorney Julie Redlinger is prosecuting the case. 

CORPUS CHRISTI, Texas – Jose Manuel Garcia, 38, of Corpus Christi, has been sent to federal prison for his involvement in a methamphetamine trafficking conspiracy, United States Attorney Kenneth Magidson announced today. Garcia and co-defendant Alvaro Villarreal, 57, also of Corpus Christi, pleaded guilty Oct. 23, 2012.

Today, U.S. District Judge Nelva Gonzales Ramos, who accepted the pleas, ordered Garcia to serve a total of 168 months of imprisonment to be followed by a five-year-term of supervised release. At the sentencing hearing, the court learned Garcia was an associate of the Mexican Mafia prison gang and that he had two felony federal convictions for illegal entry after deportation.

Villarreal will be sentenced June 14, 2013 at 9:30 a.m.
           
On July 30, 2012, agents from the United States Drug Enforcement Administration (DEA) received information that Garcia was in possession of approximately two pounds of methamphetamine and was attempting to sell the substance for $32,000. DEA agents contacted Garcia in an attempt to negotiate a purchase price for the narcotics. While conducting surveillance, agents followed Garcia to a residence in Corpus Christi where Garcia met with Villarreal. Garcia left the residence followed by Villarreal.

As Villarreal left the residence, officers conducted a traffic stop at which time Villarreal told DEA agents the methamphetamine was located inside his residence. Villarreal also told agents someone from Matamoros, Mexico, had delivered the narcotics to Villarreal and that he was attempting to sell the narcotics to Garcia. He, in turn, was trying to sell the narcotics to DEA agents. During a search of Villarreal’s residence, agents located a shoe box containing 1.26 kilograms of methamphetamine with a purity level of 97.6%. 

DEA agents contacted Garcia again and set up a meeting at Garcia’s residence so that agents could give Garcia the buy money. As Garcia drove towards his residence a traffic stop was conducted and he was arrested. Garcia told agents he was fully aware of the methamphetamine that was located in Villarreal’s residence. Garcia stated he was acting as a broker for the narcotics and that his intentions were to steal the methamphetamine from Villarreal, sell the substance and travel back to Mexico.

The investigation leading to the criminal charges was conducted in Corpus Christi lead by DEA and the Corpus Christi Police Department. The case is being prosecuted by Assistant United States Attorney Hugo R. Martinez.

CORPUS CHRISTI, Texas – Five area men have been sent to prison for conspiracy and possession with intent to distribute more than 1,000 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Edward Mata, 28, Richard Scott Patton, 41, Luis Andres Longoria, 40, and Servando Guerra, 62, all pleaded guilty in December 2011.

Today, U.S. District Judge Nelva Gonzales Ramos sentenced Guerra to 46 months in prison, while Patton, Longoria, Guerra and Gonzalez received sentences of 36 months each. All the sentences will be followed by a five-year-term of supervised release. Upon handing down the sentences, Judge Ramos noted the length of time the marijuana conspiracy existed and the large amount of narcotics trafficked.

The men, all residents of Falfurrias, were part of an organized effort to transport marijuana from September 2008 to January 2011 through ranches around the Falfurrias Border Patrol Checkpoint using four-wheel-drive vehicles known as gators to avoid detection. Agents determined that this organization was led by Jose Maria Carbajal Jr., 42, also of Falfurrias, who was prosecuted in a separate case and who was previously sentenced to nine years in prison.

They all pleaded guilty in December 2011, at which time the government described the use of four-wheel-drive vehicles by this organization in their criminal enterprise. The gators would be loaded with marijuana at a point south of the Falfurrias Border Patrol Checkpoint. Then, the gators would be piloted through ranches to a point north of the checkpoint so the marijuana could be transported via ordinary means further into the United States for distribution. During the investigation, one of the marijuana-laden gator vehicles was apprehended and another was found abandoned on a ranch.

The organization was led by Carbajal from his Brooks County ranch. Longoria helped Carbajal scout ranches and roads and assisted in the transportation of drugs. Patton usually transported the marijuana through the brush and ranches until it arrived north of the checkpoint, while Mata and also assisted Carbajal in arranging the transportation of drugs. In addition, Longoria’s and Mata’s residences were frequently used by this organization to store large amounts of narcotics after it has circumvented the checkpoint. Guerra also assisted in the transportation of marijuana for the organization. Once the drugs made it north of the checkpoint, Gonzalez transported the drugs through ranches and also helped in scouting the ranches and roads.

The case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, the Texas Department of Public Safety and the Brooks County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorneys Jon Muschenheim and Julie Hampton as part of the Organized Crime Drug Enforcement Task Force.

HOUSTON – Houston resident Sean Louis Walsh, 30, has been ordered to federal prison following his conviction for receipt of child pornography, United States Attorney Kenneth Magidson announced today. He pleaded guilty Feb. 21, 2013.

Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Walsh a term of 78 months in federal prison. Walsh was further ordered to serve 25 years of supervised release following completion of his prison term, during which time, among other conditions, he will not have access to a computer or the Internet. Walsh will also be ordered to register as a sex offender.

Walsh had been identified in an earlier investigation involving a company that operated a “nudist” website. On Sept. 16, 2011, inspectors with the U.S. Postal Inspection Service (USPIS) sent a mailing to Walsh at his home address in Houston. The mailing contained an undercover name and address and invited individuals to become a customer of the undercover company which was supposed to be a leader in taboo and forbidden videos. There was an invitation to request a free catalog specific to the customer’s desires and the flyer also had a checklist for the customer to note such desires.

In November 2011, inspectors received an order from Walsh for two DVDs in the mail, one of which was clearly described as containing child pornography, and a check for $50 in his name. The video depicted two prepubescent boys, approximately 9-10 years old and a pubescent female, approximately 11-12 years old engaging in oral sex and masturbation.

On Dec. 6, 2011, a search warrant was executed at the home of Sean Walsh, at which time agents seized several media devices. A forensic exam was conducted on three computers found in Walsh’s bedroom which yielded approximately 4,630 images and 322 videos of child pornography. Walsh was shown copies of the emails and correspondence and he acknowledged that he had sent or received the items. 

Walsh was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

This case, prosecuted by Assistant United States Attorney Robert Stabe and investigated by USPIS, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

HOUSTON – Arieal J. Bishop, 28, and David J. Golson, 26, have been ordered detained pending trial on charges of sex trafficking and producing child pornography, United States Attorney Kenneth Magidson announced today. 

Bishop and Golson appeared in court in Houston today following their transportation from Arkansas where they were being held on similar federal charges. Their official cities of residence could not be immediately determined, but testimony in court today revealed one or both of them had been in Florida, Texas, Louisiana, Arkansas and New Mexico.

The indictment, returned April 17, 2013, charges both with one count of producing child pornography and one count of trafficking of a minor for commercial sex using force, fraud or coercion. Bishop is further charged with one count of transporting a minor for the purpose of engaging in prostitution or other criminal sexual activity. The alleged crimes occurred between April and September of 2011, according to the indictment. 

Testimony at the detention hearing today indicated that Bishop filmed Golson engaging in sex with a 17-year-old girl within a short time after meeting them. Bishop allegedly posted advertisements for commercial sex for both herself and the victim in Houston as well as other cities in Texas and in Louisiana. The victim allegedly traveled with Bishop to Louisiana where they met up with Golson and continued to post ads and engage in commercial sex, according to the information presented in court. The victim gave money she earned from commercial sex to Bishop who gave it to Golson. 

During this investigation, Bishop and Golson, along with Bishop’s sister, were arrested in Arkansas and charged with similar sex trafficking offenses involving a different minor victim.  

Today, U.S. Magistrate Judge Stephen W. Smith indicated that Bishop and Golson were a flight risk and detained them pending further criminal proceedings. The court considered that neither has any legitimate source of income, residence or significant ties to Houston that would assure their appearance at trial.

For the child pornography charges, they each face a minimum of 15 and up to 30 years in federal prison and up to life for sex trafficking, upon conviction. Both charges also carry as possible punishment a maximum $250,000 fine. For the transportation charge, Bishop further faces a minimum of 10 years up to life imprisonment. Upon completion of any prison term imposed, they also face a possible lifetime term of supervised release and will be required to register as sex offenders.

This case was investigated by the Houston FBI Innocence Lost Task Force and is being prosecuted by Assistant United States Attorney Sherri L. Zack.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

HOUSTON – Dereon Tayronne Kelley, 22, of Bryan, has been ordered to prison following his convictions on all counts for communicating a bomb threat to an academic institution, United States Attorney Kenneth Magidson announced today. The verdict was returned Wednesday, April 10, 2013, after two days of trial and approximately one hour of deliberation.

Today, U.S. District Judge Lynn Hughes, who presided over the trial, handed Kelley a sentence of 33 months. He was further ordered to pay a $300 fine and pay $15,548.93 in restitution. Kelley will also be required to serve a term of three years of supervised release following completion of the prison term.

Kelley was accused of three counts of using the Internet to convey a false threat involving an explosive device in order to intimidate individuals at Texas State University (TSU).

According to evidence and testimony presented in court, Kelley used his cell phone and “hacked” into his former girlfriend’s Yahoo email account and sent three separate emails threatening to bomb the Admission’s Office at Texas State University. Kelley’s girlfriend was a former student at TSU.

The defense attempted to convince the jury that the crime was committed by some other person. However, this assertion was contradicted by the email header and cell phone service provider records.

Kelley will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The intensive investigation was initiated by the FBI’s Joint Terrorism Task Force (JTTF) - College Station Resident Agency, working together with the Texas A&M University Police Department. The JTTF is comprised of the FBI, Bryan Police Department, Texas A&M University Police Department, College Station Police Department, Brazos County Sheriff’s Office, the United States Secret Service and Waller County Sheriff’s Office.

The case is being prosecuted by Assistant United States Attorney S. Mark McIntyre and Craig Feazel. 

BROWNSVILLE, Texas – Julian Luna-Nieto, 44, has been handed a significant federal sentence for methamphetamine trafficking as well as conspiring to tamper with witnesses by using intimidation and threats, United States Attorney Kenneth Magidson announced today. Luna-Nieto, a legal permanent resident from Houston, pleaded guilty Sept., 21, 2012, admitting he used intimidation and threats with the intent to influence and prevent testimony in an official proceeding.

Today, U.S. District Judge Andrew S. Hanen, who accepted the guilty plea, handed Luna-Nieto a 28-year federal prison term for each of the two charges which will be served concurrently. In considering the sentence, Judge Hanen noted the threats he made and that he was the leader of the group involved in smuggling very pure methamphetamine.

On Feb. 16, 2012, Luna-Nieto was a passenger in a vehicle that attempted entry into the U.S. through the Gateway International Bridge in Brownsville, Texas. Approximately 12.62 kilograms (27.7 pounds) of crystalized methamphetamine was found hidden in the vehicle.  Luna-Nieto admitted he received the loaded vehicle in Mexico and arranged to transport the narcotics to Houston. 

While in custody and after being indicted on the narcotics charges, Luna-Nieto coordinated with other inmates to prepare a threat letter against a cooperating witness in an attempt to influence the witness’s testimony. That letter was intercepted by the U.S. Marshals Service. The investigation revealed another threat letter against another cooperating witness with the intent to influence that second witness’s testimony. 

The investigation was conducted by Customs and Border Protection, Homeland Security Investigations and the U.S. Marshals Service. Assistant United States Attorney Joseph Leonard is prosecuting the case.

HOUSTON – Seven area men and one woman are in custody on charges of conspiracy and possession with intent to distribute more than 1,000 marijuana plants, United States Attorney Kenneth Magidson announced today.

Dang Hai Nguyen, 47, Carry Le, 38, Hien The Nguyen, 26, Lam Thanh Ho, 43, Son Kim Le, 39, Tuan Anh Le, 24, and Tuan Nguyen, 44, all of Houston, and Minh Quang Nguyen, 46, of Katy, were arrested this morning during the execution of search warrants at eight residential properties in the greater Houston area. All are expected to appear before U.S. Magistrate Judge George C. Hanks Jr. on Friday, May 3, 2013, at which time the United States is expected to request they remain in custody pending further criminal proceedings.

Six of the properties were allegedly active hydroponic grow houses that contained marijuana plants in various stages of growth. All eight properties are in Harris County. The searches resulted in the seizure of at least 180 and up to more than 450 marijuana plants in each of the six grow houses, totaling approximately 1754 plants.

A conviction for conspiracy to possess and possession with the intent to distribute marijuana plants carries a possible punishment of a minimum of 10 years and up to life in federal prison as well as a $10 million fine.

The charges are the result of an investigation conducted by the Texas Department of Public Safety, the Harris and Ft. Bend County Sheriffs’ Departments and the Drug Enforcement Administration.

Assistant United States Attorney Michael Kusin is prosecuting the case.

Defendants are presumed innocent unless and until convicted through due process of law.

HOUSTON – Ninh Nguyen, 58, of Houston, has been ordered to prison following his conviction of access device fraud, United States Attorney Kenneth Magidson announced today. Nguyen pleaded guilty Oct. 4, 2012, admitting he possessed 15 or more credit card account numbers that had been stolen or obtained with intent to defraud.

Today, U.S. District Judge Gray H. Miller, who accepted the guilty plea, handed Nguyen a 48-month sentence followed by three years of supervised release. At the hearing today, additional evidence was presented proving that Nguyen continued to engage in access device fraud in Arizona while released on bond.  

Nguyen was arrested March 30, 2012, at the Wal-Mart on Tomball Parkway by the Harris County Sheriff’s Department for shoplifting 32 Wal-Mart gift cards. Court records indicated he was detained and subsequently found to be in possession of more than 250 credit, debit and other gift cards. Many of the cards were in Nguyen’s name, but some were in his wife’s name and in the names of others. 

All of the cards were analyzed and 27 were found to have magnetic strips encoded with numbers and accountholder information that did not match the number or name on the front of the card. The true accountholders for the 27 re-encoded cards were contacted and all stated that they had not given Nguyen permission to possess their card numbers or to re-encode them onto credit, debit or gift cards.

Although originally released on bond following his arrest in 2012, Nguyen was taken into federal custody on March 1, 2013, for violating his conditions of release.

The matter was investigated by the United States Secret Service and the Harris County Sheriff’s Department and is being prosecuted by Assistant U.S. Attorney James R. Buchanan.

HOUSTON – Jeffrey Juarez, the one-time leader of the notorious Tri City Bomber (TCB) Street gang, has been sent to federal prison for his conviction of conspiracy to possess with intent to distribute cocaine and ecstasy, United States Attorney Kenneth Magidson announced today along with and Armando Fernandez, special agent in charge of the FBI’s San Antonio Division. Juarez entered a plea of guilty on Sept. 6, 2012.

Today, U.S. District Judge Gray Miller, who accepted the guilty plea, handed Juarez a 240-month term of federal imprisonment which will be followed by five years of supervised release.  

“The punishment imposed today reflects our efforts to disrupt and dismantle an entire criminal enterprise up to and including its leadership,” said Magidson. “We will not waiver in our determination to diminish gang crime and hold those accountable for their illegal actions.   

Juarez aka “Dragon” and “Tira,” 35, of Sugar Land, along with 12 fellow gang members were indicted February 2011 following a four-year long investigation. Following today’s hearing, all have now been convicted and sentenced.

Juarez led the TCB gang who made money by trafficking in cocaine and other drugs and by providing protection services for drug loads.

“Today's sentencing is a clear message to all organized crime leaders that the safety of our communities will always be more important than your criminal enterprise,” said Fernandez, “and that our team work will always prevail.”

In October 2008, Juarez agreed the gang would provide protection for loads of cocaine traveling through South Texas for money. Unknown to Juarez, however, the loads were controlled by the FBI. Thereafter, Juarez, aided by other members or associates of the TCB gang provided protection for eight loads of cocaine loaded into a vehicle by the FBI. Juarez was paid for his services after each load and each transport was monitored by video and audio recording. 

During this same time frame, Juarez sold approximately 388 Ecstasy pills to an FBI confidential source on numerous occasions.

The TCB gang was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. An organized group with mandatory specific rules and regulations knows as “Las Reglas” to endure loyalty and participation of gang members in criminal activity, the TCB also has a decision making hierarchy including a person in charge in each city and persons holding positions within the organization including president, generals, captains, lieutenants, sergeants, soldiers and prospects. “Prospects” are those in the process of becoming TCB members. Non-members who do business with or perform work for the TCB are referred to as “associates.”  

TCB membership is for life and many of the members have tattoos such as “TCB,” a necklace tattoo made of small bombs, a 1939 Chevy Bomb car, three high-rise buildings or “39” which present their membership and allegiance to the TCB. Members pay monthly fees to support incarcerated members and to further the illegal activity of the gang.

Juarez 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.

This investigation was led by agents and officers from the FBI assisted by the United States Border Patrol, Hidalgo County Sheriff’s Department, Texas Department of Public Safety, McAllen Police Department and Mission Police Department. Assistant United States Attorneys Tim S. Braley and Mark Donnelly prosecuted the case.