Southern District of Texas
Press releases recorded for this federal judicial district.
Couple Indicted for Sex Trafficking of A Minor and Production of Child PornographyRead the Press Release
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.Bryan Man Heads to Federal Prison for Threats to TSURead the Press Release
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.
Witness Tampering and Drug Trafficking Lands Houston Man in Federal Prison for 28 YearsRead the Press Release
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.
Eight Charged Following Discovery of More Than 1700 Marijuana PlantsRead the Press Release
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.Stolen Credit Cards Numbers Lands Houston Man in Federal PrisonRead the Press Release
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.
Former Tri City Bomber Gets 20 Years in Federal PrisonRead the Press Release
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.
Former Police Officer Sent to Prison on Gun ChargesRead the Press Release
BROWNSVILLE, Texas – Armando Duenez, 31, has been ordered to federal prison following his convictions for conspiracy to export firearms and failure to appear, United States Attorney Kenneth Magidson announced today. Duenez, who pleaded guilty Jan. 30, 2013, was employed as a police officer with the Rio Hondo Police Department during the offense.
Today, U.S. District Judge Hilda G. Tagle, who accepted the guilty plea, handed Duenez a sentence of 60 months for the firearms charge and 60 months for failing to appear as ordered. A portion of the sentences will be served consecutively for a total sentence of 64 months. He was further ordered to serve three years of supervised release following completion of the prison term. In handing down the sentence, Judge Tagle also ordered Duenez perform 150 hours of community service upon his release from prison.
The former officer entered into an agreement with others to export weapons from the United States to Mexico. Duenez admitted to working with Raymond Martinez, formerly a member of the Palm Valley Police Department, to buy firearms and sell them for a profit to individuals who intended to smuggle them to Mexico. Duenez admitted to purchasing more than 15 semi-automatic rifles that were later sold in Mexico. The rifles were all capable of accepting high capacity magazines. The investigation began when weapons recovered in Mexico were traced back to him. Martinez was also convicted of dealing in firearms without a license and later sentenced to federal prison.
Duenez was arrested for the firearms offense in July 2008. After being release on bond, Duenez failed to appear for his arraignment having fled to Mexico. Duenez remained in Mexico until he surrendered to United States Marshals Service in December 2012.
Duenez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Bill Hagen.Coast Guard Petty Officer Sentenced to Prison for Stealing More Than $200,000 in Government PropertyRead the Press Release
HOUSTON – U.S. Coast Guard Petty Officer First Class Gavino Ortiz III, 32, of League City, has been ordered to federal prison following his conviction for theft of government property, United States Attorney Kenneth Magidson announced today. Ortiz pleaded guilty Tuesday, Nov. 27, 2012.
Today, U.S. District Judge Gray H. Miller, who accepted the guilty plea, handed Ortiz a sentence of 24 months in prison. He was further ordered to pay restitution in the amount of $230,468.29 and to serve a three-year term of supervised release following completion of his prison sentence.
At the time of his guilty plea, Ortiz acknowledged that were this case to go to trial, the United States could prove that on Nov. 30, 2010, he utilized a government issued J.P. Morgan Chase purchase card to buy a $2,678.91 skydiving parachute with accessories for his personal benefit. The United States would also be able to prove that from July 2010 to August 2011, Ortiz used the purchase card to make personal financial gain purchases totaling approximately $230,468.
Previously released on bond, Ortiz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.The charge against Ortiz resulting in his guilty plea was the result of an investigation conducted by the U.S. Coast Guard Investigative Service and the Department of Homeland Security-Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorney Daniel C. Rodriguez.
Alleged Hostage Takers Ordered DetainedRead the Press Release
McALLEN, Texas - Miguel Angel Navarro, 35, of Hidalgo, and Onan Herrera-Sanchez, 24, of Honduras, have been ordered detained pending trial on charges of conspiracy and hostage taking, United States Attorney Kenneth Magidson announced today.
Navarro and Herrera-Sanchez appeared in court for an arraignment and detention hearing just a short time ago before U.S. Magistrate Judge Dorina Ramos, at which time she ordered them held without bond pending further criminal proceedings. A third defendant, Milton Leonel Trevino, 20, of Pharr, is also charged with the same offenses and was previously ordered detained.
All three men were charged in a two-count indictment in April 2013 with hostage taking and conspiracy to commit hostage taking. The indictment alleges they knowingly and intentionally conspired and agreed with each other to seize or detain and threaten to kill, injure or continue to detain another person in order to compel a third person to pay a sum of money as an explicit or implicit condition for the release of the person detained.
According to a federal complaint filed in March 2013, a female victim was kidnapped from a UT-Pan American University parking lot at approximately 7:15 p.m. on Sept. 25, 2012. She was allegedly forced into a vehicle by Herrera-Sanchez. Navarro was driving and Trevino was a passenger, according to the complaint. The victim was allegedly taken and held at Trevino’s home.
That evening, the victim’s father received a phone call demanding a ransom in exchange for his daughter’s release. He was allegedly told he had until Sept. 27, 2012, to deliver $100,000 to a location in Penitas. During a subsequent call, the victim’s father was told his daughter would be killed if they did not “get rid of” the police. The complaint alleges that on Sept. 26, 2012, at approximately 7:30 p.m., Trevino called the victim’s father and told him that he could pick her up at a residence in Pharr. She was released approximately an hour later.
Each man faces up to life in prison and a possible $250,000 fine on each count, upon conviction.
The charges resulting in an indictment were the result of a joint investigation by the FBI and the University of Texas-Pan American Police Department with assistance from other law enforcement agencies.
This case is being prosecuted by Assistant United States Attorney Linda Requénez.
A defendant is presumed innocent unless convicted through due process of law.Presidential Tax Service Owner Convicted of Falsifying ReturnsRead the Press Release
HOUSTON – Sharon Edwards Kitine, the former owner of a now defunct Presidential Tax Service in Houston, has entered a plea of guilty for falsifying client returns, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). The tax service establishment she owned closed in March 2012 following her arrest.
The factual basis in support of the plea states that Kitine claimed false deductions for Houston-area clients that fraudulently increased tax refunds by approximately $200,000 for tax years 2006 through 2011.
“Tax return preparers have a duty to their clients to prepare accurate tax returns that comply with the tax laws,” stated Cruz. “IRS-CI endeavors to protect revenue by identifying, investigating and recommending prosecution of abusive return preparers. Always remember, it is your responsibility to know what is on your income tax return because ultimately, you are responsible for all the information filed with the IRS.”
On or about March 29, 2008, Kitine knowingly prepared and caused to be filed with the IRS a false 2007 U.S. Individual Income Tax Return – Form 1040 for taxpayers and fee-paying clients in need of tax return preparation services. Without consent of the taxpayers, Kitine included certain materially false deductions with the intention of generating an excessive federal income tax refund and causing a direct pecuniary harm of several thousand dollars to the IRS.
Specifically, Kitine knowingly and willfully included materially false deductions for a variety of Schedule C deductions as well as Schedule A deductions for home mortgage interest and real estate taxes even though the taxpayers rented their home. This tax return alone caused a loss to the U.S. Treasury in the approximate amount of $11,261.
Kitine also knowingly and willfully prepared and caused to be filed with the IRS several more false federal income tax returns for other clients for tax years 2006 through 2011 that generated excessive refunds based upon false and fraudulently inflated deductions and credits that caused aggregate losses to the IRS of approximately $205,682.
The plea agreement requires Kitine make full restitution to the IRS for the fraudulent refunds.
U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, has set sentencing for July 22, 2013, at which time Kitine faces up to three years in prison and $250,000 fine. She has been permitted to remain on bond pending that hearing.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Coast Guard Petty Officer Headed to Prison for Stealing More Than $600,000 in Government PropertyRead the Press Release
HOUSTON – Brandon Lee Scott, U.S. Coast Guard Petty Officer Second Class, of Dickinson, has been ordered to federal prison for using a government-issued credit card to purchase items for his own benefit, United States Attorney Kenneth Magidson announced today. He pleaded guilty Monday, Feb. 11, 2013.
Today, Vanessa D. Gilmore, who accepted the guilty plea, handed Scott a 37-month sentence to be followed by a term of three years of supervised release. He was further ordered to pay $617,441.64 in restitution. In handing down the sentence, Judge Gilmore noted that Scott had abused a position of trust and imposed a sentence at the maximum sentencing guideline range.
At the hearing in support of his guilty plea, Scott, 29, acknowledged the United States could prove he utilized a government issued credit card to buy nearly $3000 worth of electronics for his personal benefit. On June 30, 2011, Scott admitted he used a J.P. Morgan Chase purchase card to buy a 55-inch Samsung High Definition television set and two 10-inch Android WiFi g tablets having a total value of $2,659.97.
Previously released on bond, Scott was permitted to remain on bond and to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.The charge against Scott resulting in the plea and sentence was the result of an investigation conducted by the U.S. Coast Guard Investigative Service and the Department of Homeland Security-Office of Inspector General. Assistant United States Attorney Daniel C. Rodriguez is prosecuting the case.
Bryan Chiropractic Clinic Owner Convicted of $3 Million Automobile Insurance FraudRead the Press Release
HOUSTON – The owner of a now defunct chiropractic clinic in Bryan has pleaded guilty to engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, United States Attorney Kenneth Magidson announced today.
Marion Young, 42, co-owner of Private Chiropractic Care, admitted he participated in a two-year conspiracy to defraud numerous auto insurance companies by recruiting alleged auto accident victims to be represented by a Bryan area law firm. He further admitted he operated Private Chiropractic Care clinic as a front to allow fraudulent chiropractic bills to be created for treatments which were never performed and then used as support for fraudulent settlement demand letters sent to auto insurance companies. During the course of the conspiracy, Young received checks and cash from the firm totaling approximately $112,000.
Once represented by the firm, clients were sent to Private Chiropractic to be evaluated by chiropractor and co-defendant Chase Lindsey, 34. Lindsey pleaded guilty earlier this year, admitting he entered into an agreement with the office manager of that same law firm. Lindsey agreed to provide medical evaluations of, and recommend treatment for, those patients in exchange for $2,000 in cash per month, which totaled approximately $58,000 during the course of the conspiracy. Lindsey routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained and unqualified individuals and never supervised the treatments allegedly administered by these unqualified individuals. Lindsey always prescribed the same six treatments but the patients usually received only two - ice/heat packs and electric stimulation. Lindsey prescribed the treatments be done 3-4 times per week for 5-6 weeks, but the patients usually went once a week for 3-4 weeks.
Young knew the patients were not receiving most of the treatments prescribed and that they were not going for treatments on many of the days reflected on the Private Chiropractic Care bills. Young knew the false Private Chiropractic Care billing was prepared at the law firm and that the fraudulent bills were used as support for settlement demand letters sent to auto insurance companies. The fraudulent demand letters caused the insurance companies to issue settlement checks, which were spilt between Young and others.
Young also participated in the scheme to defraud the insurance companies as an accident client of the law firm. Three separate checks, totaling nearly $5000, were sent and made payable to Young and the law firm to settle an accident claim which was based on fraudulent chiropractic bills produced at the firm. Young never received the treatments reflected on the bills sent to the insurance companies.
The scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims. The insurance companies paid at least $1.2 million in false claims during 2007-2009.
U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, has set sentencing for Sept. 16, 2013, at which time Young faces up to 20 years in prison and a possible $250,000 fine. As part of his plea agreement, Young also agreed to forfeit the $112,000 he received and to pay restitution of $1.2 million to the insurance companies victimized by the scheme. Young was allowed to remain free on bond pending his sentencing.
Three remaining defendants charged in relation to this case are scheduled for trial on Sept. 24, 2013. They are presumed innocent unless convicted through due process of law.
The criminal charges are the result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. Assistant United States Attorney Al Balboni is prosecuting the case.
Former Postal Carrier Heads to Federal Prison for Stealing Government FundsRead the Press Release
HOUSTON - Mytasha Henry, a former U.S. Postal Service letter carrier from the Houston area has been ordered to prison following her conviction on charges of stealing government funds with regards to the Office of Workers’ Compensation Program (OWCP), United States Attorney Kenneth Magidson announced today. Henry pleaded guilty Friday, Nov. 16, 2012.
Today, U.S. District Judge Melinda Harmon, who accepted the guilty plea, handed Henry a sentence of 24 months and was further ordered to pay was further ordered to pay $171,039.50 in restitution. Henry will also be required to serve a term of three years of supervised release following completion of the prison term.
Henry, 32, was indicted by a federal grand jury in Houston May 8, 2012, on five counts of mail fraud, one count of false statements regarding federal workers’ compensation benefits and one count of theft of government money. She later pleaded guilty to all counts.
The OWCP allows federal employees who sustain on-the-job injuries to receive medical payments and compensation benefits, including reimbursement for medically-related travel. From July 2007 to July 2008, Henry worked as a letter carrier at the Royall Station in Houston. Citing an injury that occurred while delivering mail, she filed a Federal Employee’s Claim for Continuation of Pay/Compensation in 2007.
From Sept. 21, 2007, through May 14, 2012, Henry filed medical travel refund requests with the U.S. Department of Labor (DOL) and OWCP claiming mileage reimbursement and parking and toll fee reimbursements for physician and rehabilitation appointments which she did not attend nor incur associated costs. Henry defrauded the DOL and OWCP of more than $173,000, which she received as a result of her fraudulent claims.
Henry is in custody where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by DOL-Office of Inspector General and the U.S. Postal Service-Office of Inspector General. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
Spring Man Who Coerced 9-Year-Old to Take Nude Photo with Handheld Gaming Device Lands Significant SentenceRead the Press Release
HOUSTON – Spring resident Steve Correa-Franco, 33, has been ordered to prison for nearly 20 years following his convictions of enticement of a child and possession of child pornography, United States Attorney Kenneth Magidson announced today. He pleaded guilty to the charges Thursday, Dec. 6, 2012.
Today, U.S. District Judge Sim Lake, took into consideration the seriousness of the crime and the need for deterrence and handed Correa-Franco respective sentences of 235 and 120 months for the enticement and possession convictions. The sentences will run concurrently. Additional information was also presented today, including a victim impact statement from the parents of the girl. In handing down the sentence, Judge Lake noted that the victim will carry the memory of what Correa-Franco did for a long time. Correa-Franco was further ordered to serve 25 years of supervised release following completion of his prison term. He will also be ordered to register as a sex offender.
The charges against Correa-Franco arose in April 2012, when the Rochester, Minn., Police Department responded to a complaint regarding the possible online solicitation of a nine-year-old child. The responding officer met with the child’s parents, at which time the father told police he had noticed the family computer open to the website www.kidzworld.com and saw that his daughter had been communicating with someone. The father further investigated his daughter’s online activity and accessed her Yahoo! email account. In the account, he found extensive chat logs between his daughter and an unknown person with a Yahoo! Username of “Steve Correa,” later identified as Correa-Franco. The majority of the chat activity occurred on April 6, 2012.
During the April 6 chats, the girl told Correa-Franco she was nine-years old. He said he was 16 years old and repeatedly discussed having sex with the young girl. He also sent the daughter several photos of himself which contained images of his face.
Correa-Franco asked the girl to take a nude photograph of herself, which she did using her Nintendo DS handheld game system. She took the photograph with the gaming system, uploaded it to her computer and then emailed it to the address Correa-Franco had provided.
Law enforcement officers were able to trace the email account to Correa-Franco’s residence in Spring. On May 18, 2012, a federal search warrant was executed, at which time agents seized Correa’s laptop computer. Agents were able to confirm the images emailed to the nine-year-old were, in fact, images of Correa-Franco.
A forensic analysis of the laptop computer resulted in the discovery of 210 digital videos of child pornography, including the lewd and lascivious exhibition of the genitals of minor children and actual sexual intercourse involving a nude minor female and adult male. The nude image of the nine-year-old victim taken by her at Correa-Franco’s urging was also discovered.
Correa-Franco will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the FBI and the Rochester, Minn., Police Department. Assistant U.S. Attorney Robert Stabe is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Marijuana Trafficking via Intracoastal Waterway Sends Kingsville Man to PrisonRead the Press Release
CORPUS CHRISTI, Texas - Michael "Mickey" Pena, 46, of Kingsville, has been ordered to prison following his conviction of conspiring to possess with the intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. A federal jury convicted Pena on Feb. 4, 2013, after less than one day of trial and only 30 minutes of deliberation.
Today, Senior U.S. District Judge Janis Graham Jack, who presided over the trial, handed Pena a sentence of 97 months. Pena asked the court’s forgiveness and stated he had fallen on hard economic times. In handing down the sentence, Judge Jack told Pena that “you have choices when you go down this road.” She further noted that even though he was a minor participant in the conspiracy, she would not impose a more lenient sentence because Pena perjured himself at trial and did not accept responsibility until after the jury’s verdict. Pena will be required to serve a term of four years of supervised release following completion of the prison term.
During trial, the government proved Pena participated in a drug trafficking organization that transported large amounts of marijuana concealed in the hulls of altered shallow-bottom fishing boats. The drugs were transported via the intra-coastal waterway from Port Mansfield to Corpus Christi in an effort to circumvent Border Patrol checkpoints in Falfurrias and Sarita. Testimony revealed that in early 2012, organization members deconstructed a 21-foot Dargel Scout fishing boat, loaded the hull of the vessel with more than 1,100 pounds of marijuana and rebuilt the deck of the boat over the course of 20 days. The boat was then launched in Port Mansfield. Co-defendant Rogelio Mendoza then drove it north in the intracoastal waterway. Marine interdiction agents with Customs and Border Protection intercepted the vessel just south of Corpus Christi.
Subsequent investigation revealed that Pena, who arrived at marker 37 with an empty boat trailer shortly after the boat was intercepted, had registered the vessel in his name two weeks earlier. Certified state documents showed that the previous owner of both the boat and the empty trailer were members of the organization. Agents also testified that they had conducted surveillance of organization members scouting boat ramps near marker 37 about six weeks before the seizure and then immediately drove to Pena’s Kingsville residence.
Mendoza, 38, and five other members of the conspiracy have previously pleaded guilty before U.S. district judges in Corpus Christi and have been or are awaiting sentencing. Those include Alberto Lopez aka Alberto Lopez-Reyna, 40, Lombardo Zarate, 50, Glen Dial, 57, Luz Ramirez, 26, and Hector Perez-Gonzalez, 40.The case was investigated by Homeland Security Investigations with the assistance of the Kingsville Narcotics Task Force. The case was prosecuted by Assistant United States Attorney Jeffrey D. Preston.
Huntsville Man Sentenced for Social Security FraudRead the Press Release
HOUSTON - Christopher Tyrone Cooper, 39, of Huntsville, has been ordered to federal prison following his conviction for one count of Social Security fraud, United States Attorney Kenneth Magidson announced today. Cooper pleaded guilty Thursday, Nov. 29, 2012.
Today, U.S. District Judge U.S. District Judge Sim Lake, who accepted the guilty plea, handed Cooper a total sentence of 27 months and must pay restitution. He will also be required to serve a term of three years of supervised release following completion of the prison term.
According to court documents, Cooper used the identity and Social Security number of an individual with a similar name to obtain more than $50,000 in credit at various FDIC-insured and non-insured institutions, medical facilities and other businesses, including financing from Bank of America to purchase a vehicle in March 2010.
According to documents in support of the guilty plea, Cooper opened 18 lines of credit using someone else’s Social Security number. Cooper defaulted on every loan and failed to make a single payment on any accounts he allegedly opened under fraudulent pretenses.
The victim in the case indicated he had been the victim of identity theft. He had been attempting to fix his credit for more than a year, but was unsuccessful as a result of Cooper continually using his Social Security number to obtain credit.
Cooper will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The matter was investigated by the United States Secret Service and the Huntsville Police Department. Assistant United States Attorney James R. Buchanan is prosecuting the case.
Extradited Mexican with Ties to Zetas Sentenced in Large-Scale Cocaine Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Benito Aguilar-Ozuna, aka “Pichollo,” a Mexican citizen who was extradited to the U.S. late last year, has been sentenced to prison for nearly 20 years for conspiracy to traffic cocaine, United States Attorney Kenneth Magidson announced today. Aguilar-Ozuna pleaded guilty Jan. 25, 2013.
Just moments ago, Senior U.S. District Judge Janis Graham Jack handed Aguilar-Ozuna a sentence of 235 months. As a Mexican citizen, he is expected to face deportation proceedings following his release from prison.
Benito Aguilar-Ozuna was charged with conspiracy to possess with intent to distribute cocaine in an indictment returned Nov. 25, 2008, which was superseded in April 2009 and again in January 2010. Aguilar-Ozuna was charged along with three others, including Carlos Alberto Oliva-Castillo aka “La Rana,” a Mexican citizen arrested in October 2011 in Mexico. According to records, Oliva-Castillo was known as the number three figure in the Zetas drug cartel at the time of his arrest and allegedly controlled Zeta operations in the key northern states of Tamaulipas, Coahuila and Nuevo Leon.
The investigation in this case began in 2006 when law enforcement authorities discovered a narcotics importer/distributor based in Robstown for whom Oliva-Castillo was the source of supply. Aguilar-Ozuna was Oliva-Castillo’s most trusted associate in this large-scale cocaine trafficking organization based out of Diaz Ordaz, Mexico. The organization was responsible for the importation of cocaine from Mexico and the distribution of cocaine to the organization’s cells located in Texas, Florida, California, Oregon, Georgia and Illinois. Agents also discovered that Oliva-Castillo and Aguilar-Ozuna oversaw the transportation of narcotics proceeds in the hundreds of millions from the United States to Mexico. During the course of the investigation, law enforcement seized approximately 174 kilograms of cocaine from members of this organization. The case against Oliva-Castillo remains pending. He is presumed innocent unless convicted through due process of law.
The investigation leading to the criminal charges was conducted through the Organized Crime Drug Enforcement Task Force in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, Corpus Christi Police Department, United States Border Patrol and the United States Marshals Service. The Department of Justice’s Office of International Affairs provided substantial assistance in Aguilar-Ozuna’s extradition.
This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Two Convicted of Counterfeiting Thousands of Luxury GoodsRead the Press Release
HOUSTON – Two men from China, found with more than 14,000 fake luxury items, have been convicted of counterfeiting, United States Attorney Kenneth Magidson announced today. Yintang Cao, 48, and Hong Zhang, 46, entered a guilty plea to the charge just moments ago before U.S. District Judge Lee Rosenthal.
The charges arose after Cao and Zhang were discovered with more than 14,000 counterfeit items bearing the names of Coach, Dolce & Gabbana, Louis Vuitton, Prada and Versace, manufactures of luxury fashion goods.
Cao and Zhang were charged with separate, but related, criminal informations on March 15, 2013. Today, they admitted they knowingly used counterfeit marks on and in connection with such goods, identical to and substantially indistinguishable from genuine marks, the use of which was likely to cause confusion, mistake and to deceive.
Judge Rosenthal has set sentencing for Aug. 9, 2013, at which time both men face up to 10 years in federal prison as well as a $2 million fine. They were permitted to remain on bond pending their sentencing hearing.The felony Information and subsequent convictions came after an intensive investigation conducted by Homeland Security Investigations.
Pharr Man Admits Drug Crimes and Cartel Ties via Facebook, Heads to Federal PrisonRead the Press Release
McALLEN, Texas – Erick Ochoa-Rodriguez, 19, of Pharr, has been ordered to prison for almost 10 years following his convictions for conspiring to possess and actually possessing marijuana with the intent to distribute the controlled substance to another, United States Attorney Kenneth Magidson announced today. A federal jury in McAllen convicted Ochoa-Rodriguez on Thursday, Feb. 7, 2013, after nearly three days of trial.
Today, U.S. District Judge Micaela Alvarez, who presided over the trial, handed Ochoa-Rodriguez a total of 115 months in federal prison which will be followed by a four-year-term of supervised release. At the hearing today, the government presented additional evidence showing Ochoa-Rodriguez to be a cartel operative involved in drug and firearms trafficking, bulk cash smuggling and cartel violence. In many of the Facebook posts introduced at the sentencing hearing, he bragged about trafficking cocaine, selling firearms, recruiting drug dealers and even kidnapping other rival drug dealers before taking them to Mexico where they would be tortured and killed.
In handing down the sentence, Judge Alvarez noted the evidence introduced at trial and during the hearing today indicated that Ochoa-Rodriguez was “in the [drug trafficking] business” and had “embraced this life as a drug trafficker.” Judge Alvarez went on to say that any other sentence would only serve to “encourage this lifestyle” and his continuing “disregard for the law.” Judge Alvarez further mentioned that while the defendant’s age would usually serve to lessen his sentence, he has repeatedly relied upon his age to manipulate law enforcement and the courts.
Ochoa-Rodriguez was charged in an indictment returned on Nov. 13, 2012. During trial, the government presented photos, maps and witness testimony illustrating his attempt to receive 175 kilograms of marijuana from unknown individuals carrying the drugs from the border.
On Oct. 29, 2012, Border Patrol agents encountered Ochoa-Rodriguez as he drove his vehicle to a planned rendezvous near a levee within two miles of the border with seven individuals who had carried marijuana bundles from the Rio Grande River. He immediately fled, first in his vehicle and then on foot into a densely forested area. Agents ultimately located him as he was lying in the fetal position within dense overgrowth through the use of a canine unit, trackers and aircraft.
The government also proved this was not the defendant’s first encounter with law enforcement. Additional evidence demonstrated that Ochoa-Rodriguez received 125 kilograms of marijuana from undercover federal agents on June 11, 2012, before successfully fleeing law enforcement on that occasion. Further investigation revealed his growing ties with Mexican Drug Cartels and his involvement in cocaine and firearms trafficking, money laundering and other cartel-related crimes. The government introduced photographs depicting Ochoa-Rodriguez with firearms and large sums of Untied States currency.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is being investigated by the Drug Enforcement Administration, Border Patrol and Homeland Security Investigations. Assistant United States Attorney Grady J. Leupold is prosecuting the case.
Mexican Boat Captain Convicted of Obstructing BoardingRead the Press Release
BROWNSVILLE, Texas – Jose Alejandro Carrillo, 24, of Matamoros, Mexico, has entered a plea of guilty to obstructing boarding, United States Attorney Kenneth Magidson announced today along with Rear Admiral Roy Nash, Commander, Eighth Coast Guard District.
Carrillo was the captain of a Mexican fishing boat, typically referred to as a “launcha,” that fled from a Coast Guard vessel attempting to detain them for an inspection on March 16, 2013. Carrillo had been fishing illegally in U.S. waters and did not want to lose his catch or the launch. A chase on rough open seas ensued, during which Carrillo had another crewmember, Ismael Lopez-Ortiz, assist him in controlling the launcha. During the chase, the launcha twice encountered the Coast Guard vessel. Carrillo finally stopped and allowed the launcha to be boarded and inspected after Carrillo’s crew asked him to stop the flight.
“Vessel operators who don't stop and attempt to flee from the Coast Guard put themselves and others at great risk,” said Nash. “We'll continue to work with our partner agencies to ensure those who violate this law are held accountable for their actions.”
Castillo will remain in custody pending his sentencing hearing, set for July 29, 2013, before United States District Judge Andrew S. Hanen. At that time, he faces up to five years in federal prison and a possible $250,000 fine.
Lopez-Ortiz, 23, also of Matamoros, was convicted of the misdemeanor charge of interfering with a federal agent.
The case, investigated by the Coast Guard Investigative Service, is being prosecuted by Assistant United States Attorney Joseph Leonard.
Galveston Resident Sent to Prison for Possessing Child PornographyRead the Press Release
GALVESTON, Texas – Aurelio J. Ariaz, 27, has been ordered to prison for more than eight years following his conviction of possession of child pornography, United States Attorney Kenneth Magidson announced today. Ariaz entered a plea of guilty to the charge on Nov. 14, 2012.
Today, U.S. District Judge Gregg Costa handed Ariaz a total federal prison term of 97 months. The sentence will be immediately followed by a term of 15 years on supervised release during which he must comply with a number of special conditions designed to protect children and prohibit the use of the Internet. He will also have to register as a sex offender and must pay $2,000 in restitution.
The investigation began when in 2011 when officers with the U.S. Secret Service and Pearland Police Department both downloaded videos and images containing child pornography from a computer later found to be located at the residence of Ariaz in Galveston.
Agents executed a federal search warrant on Oct. 14, 2011, at which time Ariaz indicated he knew why they were at the residence. Ariaz admitted to using a peer-to-peer file sharing program to download child pornography for approximately two years, that he possessed nearly 500 images and videos and that they would be in his file sharing program. Ariaz also said most of images would be of boys 12-13 years old but that he may have some as young as 7-8 years old. A Dell computer and an HTC MyTouch cell phone were seized at that time.
A forensic exam was conducted which resulted in the discovery of approximately 852 images and 519 videos of child pornography. Forensics agents found at least 10 images of child pornography had been downloaded using the file sharing program as late as Oct. 1, 2011. These images depicted prepubescent and pubescent males in a lascivious display of their genitals.
The charges against Ariaz were the result of an investigation conducted Homeland Security Investigations, U.S. Secret Service and Pearland Police Department in conjunction with the Houston Metro Internet Crimes Against Children Task Force. Ariaz 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 U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Final Defendant Convicted in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
HOUSTON – Houston businessman Tony David Maldonado, 33, of Houston, has pleaded guilty in relation to a scheme to defraud residential mortgage lenders of more than $22 million in loans, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen L. Morris and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz. Three others have already been convicted in the scheme, including attorney and former mortgage loan officer Buffy Marie Lawrence, Houston businessman Walter Ryan Macapaz and attorney and former title company escrow officer Lisa Carol Ross.
All pleaded guilty to conspiracy to commit wire fraud. Ross, 51, of Missouri City, was convicted in August 2012, while Lawrence, 41, and Macapaz, 35, both of Houston, pleaded guilty last Friday, April 19.
All were indicted in 2011 for a scheme to defraud residential mortgage lenders. The conspirators used fraudulent documents to help borrowers qualify for mortgage loans to purchase condominium units in the Commerce Towers building located on Main Street in downtown Houston as well as residential homes in the Houston area. The documents had false and misleading information about the borrowers’ income, assets, liabilities, employment status, bank deposits, rental payments, intent to use properties as a primary residence and source of funds used to close the real estate transactions.
Lawrence and Macapaz admitted they knowingly arranged for borrowers to submit the false documents to mortgage lenders in order to obtain loans, while Maldonado has now admitted he knowingly created some of the false documentation.
U.S. District Judge Gray Miller, who accepted all the pleas, has sentencing for Maldonado, Lawrence and Macapaz are set for Sept. 13, 2013. Lawrence, Macapaz and Maldonado were permitted to remain on bond pending their hearings. Ross is currently in custody on unrelated state charges where she will remain pending sentencing in this case by Judge Miller on May 17, 2013. They each face a maximum penalty of 20 years in prison and a $250,000 fine.
The investigation leading to the charges was conducted by the FBI, IRS-CI, Federal Deposit Insurance Corporation – Office of Inspector General and Houston Police Department. Assistant United States Attorney John Lewis is prosecuting the case.
Federal Judge Sentences Two Men in Cocaine ConspiracyRead the Press Release
McALLEN, Texas - Poteet resident Jonathan Pena and Victor Reyes-Campos, of Mexico City, Mexico, have been sentenced to federal prison for conspiracy to possess with the intent to distribute multi-kilogram amounts of cocaine, United States Attorney Kenneth Magidson announced today.
Jonathan Pena, 28, and Reyes-Campos, 34, of Mexico City, Mexico, entered guilty pleas on April 2, 2012, and Sept. 17, 2012, respectively.
Today, U.S. District Judge Randy Crane handed Pena a 121-month sentence, while Reyes was ordered to serve 210 months in the U.S. Bureau of Prisons.From December 2008 to January of 2010, Pena and Reyes were members of a drug trafficking and money laundering conspiracy which was responsible for transporting thousands of kilograms of cocaine from the Rio Grande Valley area to Georgia. During the investigation, agents were able to seize hundreds of kilograms of cocaine and millions of dollars in drug proceeds.
The investigation leading to the charges was conducted by the Drug Enforcement Administration. Assistant United States Attorney James Sturgis prosecuted the case.
Mexican National Charged in Deaths of Smuggled AliensRead the Press Release
CORPUS CHRISTI, Texas – Idelfonso Garcia-Benitez, 20, of Michoacan, Mexico, has been charged with the smuggling of a group of 14 Illegal aliens that left seven dead and one in critical condition, United States Attorney Kenneth Magidson announced today along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI).
The indictment, returned just moments ago, charges Garcia-Benitez with one count of conspiring to transport aliens, 14 counts of transporting an alien and one count of illegal re-entry after deportation.
According to documents filed of record in the case, on March 20, 2013, at approximately 11:00 p.m., a Kingsville Police Department officer observed a pick-up truck violate state traffic law by disregarding a stop sign. The officer attempted to conduct a traffic stop on this vehicle, but the vehicle fled, leading to a brief pursuit.
The driver crashed into a vehicle barrier on General Cavazos Avenue in Kleberg County that had been deployed by the Kingsville Naval Air Station. A total of 15 illegal aliens were discovered at the scene. Of those, Garcia-Benitez was identified as the driver. Seven were killed and one remains in critical condition.
“The tragic loss of life in this case shows the very real risks that people face when they put themselves in the hands of a smuggler,” said Moskowitz. “Those responsible for the illegal movement of people into and through our country place personal profit ahead of public safety and border protection. They are driven by greed with little regard for the health and well-being of their human cargo and that can be a deadly combination.”
Garcia-Benitez was arrested at the scene of the accident. He has been in custody since that time, where he will remain pending further criminal proceedings. He is expected to appear for an arraignment hearing before U.S. Magistrate Judge Owsley early next week.
If convicted, Garcia-Benitez faces up to 20 years in prison and a possible $250,000 fine.
The case is being investigated by HSI and prosecuted by Assistant United States Attorney Jeffrey S. Miller.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Indicted for Failing to Stop for Coast GuardRead the Press Release
BROWNSVILLE, Texas - A Brownsville federal grand jury has indicted two Mexican fishing boat crewmen for failing to heave to and obstructing boarding, United States Attorney Kenneth Magidson announced today along with Rear Admiral Roy Nash, Commander, Eighth Coast Guard District.
The indictment alleges Jose Alejandro Carrillo and Ismael Lopez-Ortiz failed to stop for the Coast Guard as directed. The indictment was returned April 9, 2013, and both are set to make their initial appearance tomorrow at 8:45 a.m. before U.S. Magistrate Judge Ronald G. Morgan.
“Failing to 'heave to' for an at-sea Coast Guard boarding is a serious offense,” said Nash. “Vessel operators who do not stop and attempt to flee from the Coast Guard put themselves, law enforcement officers and others at great risk. My thanks to our partner agencies for helping ensure that those who violate this law are held responsible for their actions.”
Carrillo, 24, and Lopez-Ortiz, 23, both of Matamoros, Mexico, were arrested by the Coast Guard on March 16, 2013. At that time, they allegedly fled from a Coast Guard vessel that was attempting to detain them for an inspection. Carrillo was the captain of the Mexican fishing boat, while Lopez-Ortiz assisted Carrillo in controlling the boat during the fleeing from the Coast Guard, the indictment alleges.
Both men have been in custody since their arrest.
A conviction for failing to Heave to or obstructing boarding each carries a maximum penalty of five years in federal prison and a possible fine of up to $250,000. Lopez-Ortiz was also indicted on a misdemeanor charge of interfering with a federal agent for which he faces up to a year in prison.
The case was investigated by the Coast Guard Investigative Service. Assistant United States Attorney Joseph Leonard is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Possession of Child Porn Lands Alice Man in Federal PrisonRead the Press Release
HOUSTON – Anthony Rene Perez, 26, of Alice, has been handed a nearly seven-year federal term of imprisonment following his conviction of possession of child pornography, United States Attorney Kenneth Magidson announced today. Indicted in November 2012, Perez pleaded guilty just a short time later – on Jan. 7, 2013.
Today, Senior U.S. District Judge Hayden Head sentenced Perez to a total of 70 months in federal prison to be followed by 10 years of supervised release.
Perez came to the attention of law enforcement following outcries of sexual abuse by two minor children who had been temporarily in his care. The outcries occurred in May 2012. The children described numerous acts of sexual abuse committed against them by Perez while staying at his home during Spring Break 2011. One of the children stated that Perez had photographed the child while showering naked and then later showed the pornographic images of the same child on Perez’ computer.
The investigation led to a search of his former home in Alice in June 2012, at which time several electronic storage devices were discovered and found to contain either child pornography or evidence of its prior existence on the devices. More than 100 images and videos of child pornography were identified, but investigators found no evidence of the alleged sexual abuse described by the children on any of the electronic media.
The FBI, Corpus Christi Police Department’s Internet Crimes Against Children Task Force (ICAC), Alice Police Department, Jim Wells County Sheriff’s Office, and the Texas Rangers investigated the case.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Falfurrias Marijuana Distributor Lands in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Jose Maria Carbajal Jr., of Corpus Christi, Texas, has been sentenced to nine years in federal prison for his involvement in a marijuana conspiracy, U.S. Attorney Kenneth Magidson announced today.
On May 16, 2011, Carbajal pleaded guilty to conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and to making a false statement on a loan application to a federally insured bank. Today, Senior United States District Judge John Rainey sentenced him to 108 months on each count of conviction to be served concurrently.
Carbajal, 42, led 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. During Carbajal’s plea, and according to court documents, Carbajal’s organization used four-wheel-drive vehicles which 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.
In December 2010, according to court documents, Carbajal discussed a Dec. 18, 2010, marijuana seizure and his assistance to the Zeta drug cartel with respect to uncovering the identity of those who were cooperating with the government. As part of this assistance, Carbajal claimed to have shown two Zeta operatives the home addresses of two Brooks County law enforcement officials. According to the recorded conversation, the Zeta operatives planned to kidnap the law enforcement officials to coerce them into revealing the names of people cooperating with the government in their drug investigations.
In December 2011, five Brooks County men who assisted Carbajal also pleaded guilty to conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana in a separate case before United States District Judge Nelva Gonzalez Ramos. They are set for sentencing later this year.
The case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations 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 and Drug Enforcement Task Force.
Corpus Christi Man Gets Max Sentence for Producing Child PornRead the Press Release
CORPUS CHRISTI, Texas – Timothy Wayne Bailey, 38, of Corpus Christi, has been handed a 30-year prison term following his conviction of sexual exploitation of a child, commonly known as production of child pornography, United States Attorney Kenneth Magidson announced today.
Bailey pleaded guilty to the charge on Jan. 22, 2013, and was sentenced to the maximum prison term allowed by law late yesterday by Senior U.S. District Judge John D. Rainey.
Bailey came to the attention of law enforcement through an undercover investigation, at which time he was identified as person who had been distributing images of child pornography online. A search warrant executed at Bailey’s home resulted in the discovery of several electronic storage devices which were found to contain images of child pornography. A closer inspection of those images resulted in the discovery of Bailey’s prior sexual abuse of a family member. The victim was interviewed and described more than four years of continuous sexual assault suffered at the hands of Bailey.
Bailey was arrested on Dec. 5, 2012. He has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and the Corpus Christi Police Department’s Internet Crimes Against Children Task Force (ICAC) investigated.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Mexican National Convicted in Alien Smuggling Scheme to Steal Fees from Aliens and Their FamiliesRead the Press Release
McALLEN, Texas – Pedro Rayon-Perez, 26, has been convicted of harboring undocumented aliens, United States Attorney Kenneth Magidson announced today. The Mexican National entered a guilty plea just moments ago as he was set to begin trial.
Rayon-Perez had been charged in an indictment returned Aug. 28, 2012, along with Roxanna Leal, 25, of McAllen, and Mexican Nationals Luis Aguilar-Hernandez, 41, and Osiel Castillo, 45, who had previously entered guilty pleas in the case.
The investigation revealed Rayon-Perez coordinated a smuggling ring that involved five undocumented aliens who crossed into the United States on Nov. 12, 2011. Rayon-Perez, Leal and Aguilar-Hernandez had agreed to demand payment of the aliens’ smuggling fees from their families while they held the aliens at stash houses in McAllen and Pharr. The aliens had previously agreed to pay the remainder of their fees once they arrived in Houston. However, the defendants planned to coerce early payment of these fees from their families and release them in public places throughout the Rio Grande Valley, not in Houston. They had previously conducted similar scams against other smuggled aliens.
The investigation began when Rayon-Perez convinced the family of a pregnant alien and her husband to wire $4,800, after which he double-crossed Aguilar-Hernandez by failing to divide the proceeds. When Aguilar-Hernandez demanded additional payment from the aliens, the family sought law enforcement assistance. The San Juan Police Department, assisted by the United States Marshals Service, conducted a tactical operation that freed the aliens on Nov. 17, 2011, from the stash house where Aguilar-Hernandez and Leal were harboring the aliens.
U.S. District Judge Randy Crane, who accepted all the pleas on the case, has set sentencing for June 20, 2013, for Rayon-Perez and Aguilar-Hernandez, while the other two will be sentenced on June 13, 2013, at 2:00 p.m. At sentencing, all four face up to 10 years imprisonment. With the exception of Leal, who was permitted to remain on bond, all will remain in custody pending their respective hearings.
The case was investigated by Homeland Security Investigations with assistance from the San Juan Police Department. Assistant United States Attorneys Grady J. Leupold and Leo J. Leo III are prosecuting the case.
Armed Bank Robbery Sends Final Two to PrisonRead the Press Release
HOUSTON – The final two defendants convicted in the armed robbery and attempted robbery of two local banks have been ordered to federal prison, United States Attorney Kenneth Magidson announced today. Andrea Steptore, 30, Odis Darrell Wheeler, 21, both of Houston, had previously pleaded guilty to aiding and abetting aggravated bank robbery. Steptore was further convicted of brandishing a firearm during a crime of violence.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty pleas, sentenced Steptore to a sentence of 67 months for the underlying bank robbery charge, but also received a mandatory seven years for the firearms charge which must be served consecutively for a total sentence of 151 months. Wheeler was ordered to serve a 46-month-term of imprisonment. Both will also serve a term of three years on supervised release following completion of their sentences.
On Sept. 9, 2010, Steptore and Barry Ogilvie, 37, of Houston, were armed with firearms and robbed the Prosperity Bank located on the 2800 block of F.M. 1960 East in Houston. During the robbery, Ogilvie shot two rounds of ammunition into a wall. No one was injured, but behind the wall was a drive-thru teller stand. Zachary Ellis, 48, of Houston, had selected the bank, scouted it prior to the robbery and shared in the proceeds.
Less than two weeks later, Ogilvie and Steptore attempted to rob the Vista Bank on the 14500 block of Northwest Freeway in Houston. They were both armed with semi-automatic pistols and wore masks. When they approached the bank, an off-duty police officer, who was working security at the bank, saw them and began firing at them. Steptore was able to flee in the getaway vehicle driven by a third individual, but Ogilvie was arrested. Odis Darrell Wheeler, 21, of Houston, stole a car which was used in the robbery and waited around the corner in a switch vehicle. Ellis had again selected the bank, told his co-conspirators he had scouted it prior to the robbery and planned to share in the proceeds.
Ogilvie and Ellis also pleaded guilty and were previously sentenced to 198 and 97 months, respectively. Steptore, Ogilvie and Ellis were further ordered to pay restitution to Prosperity Bank.
The case was investigated by FBI Houston Bank Robbery Task Force. Assistant United States Attorney Jennie Basile is prosecuting the case.
Three Men Handed Massive Sentences in Attempted Cocaine RobberyRead the Press Release
HOUSTON – Three Colombian nationals have been ordered to prison for lengthy terms following multiple convictions including drug conspiracy, firearms charges, identity theft and false claims of citizenship, United States Attorney Kenneth Magidson announced today. The jury returned its verdicts against Carlos Manuel Boria, Francisco Javier Rodriguez, and Edwin Rivera-Otero, on Monday, Oct. 1, 2012, following a five-day trial.
Today, Boria was handed nearly a 41-year-term of federal imprisonment, while Rodriguez and Rivera-Otero will serve nearly 18 and more than 34 years in federal prison, respectively.
All were convicted of aiding and abetting the possession with the intent to distribute cocaine, aiding and abetting the use of a firearm during the commission of a drug trafficking crime, conspiracy to possess with the intent to distribute cocaine and conspiracy to use a firearm. Boria and Rivera-Otero were also convicted of possession of a firearm by a convicted felon. In the midst of trial, Boria and Rivera-Otero also entered guilty pleas to aggravated identity theft and false claims to United States citizenship.
Today, U.S. District Judge Melinda Harmon handed down the sentences. Boria, aka Luis German Rodriguez or Victor, was ordered to serve a total of 405 months in federal prison for all but the aggravated identity theft and the aiding and abetting use of a fireams charges. Those charges resulted in respective terms of 24 and 60 months in federal prison, which must be served consecutively for a total sentence of 489 months. Edwin Rivera-Otero, aka Luis Angel Maldonado Barroso, received a 327-month-term in addition to the mandatory 24 months for the identity theft and 60 months for the firearms charge for a total sentence of 411 months, while Francisco Javier Rodriguez, aka Siver Jesus Cundumi-Bonilla, will serve a total of 211 months in prison – 151 months for all but the aiding the use of a firearm charge which added an additional 60 months.
As illegal aliens, all are expected to face deportation proceedings following release from prison.
In handing down the sentences, Judge Harmon noted that Boria was the organizer who brought others into the conspiracy and that he had been in Houston illegally since 1998. She added that Rivera-Otero occupied a managerial role, was found with a false identification and was arrested less than nine months after release from prison on previous drug conspiracy charges in the Western District of Texas.
At trial, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) testified that they interdicted a group of seven individuals who were preparing to rob a cocaine stash house of multiple kilograms of cocaine. The group was dressed in clothing identifying them as police and planned to use firearms to subdue any occupants of the stash house. Testimony further revealed agents recovered five firearms, four of which were reported as stolen, as well as multiple zip-ties and additional police clothing.
Testimony revealed insight into the planning stages of the robbery. The robbery crew met at an apartment before the planned robbery and displayed their police clothing, commenting about who looked the most official. Assignments for the home invasion were doled out and the crew was prepared to forcibly rob the stash house for cocaine. It was then, according to agents, that law enforcement intervened and arrested the crew.
Upon pleading guilty to the other charges, Boria and Rivera-Otero admitted that at the time of their arrest, they were in possession of fraudulently obtained identification cards and Social Security numbers.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the ATF, United States Postal Inspection Service, Homeland Security Investigations, Drug Enforcement Administration and the Houston Police Department. Assistant United States Attorneys Mark E. Donnelly and Richard J. Magness prosecuted the case.
Last Two Convicted in Houston Armored Car RobberiesRead the Press Release
HOUSTON – Walter Keitric Freeman, of Houston, and Allen Moore Jr., of Dallas, have entered pleas of guilty in relation to the robbery and attempted robbery of two armored cars operating in and around Houston, United States Attorney Kenneth Magidson announced today.
Freeman, 23, and Moore, 46, each pleaded guilty today to one count of discharging of a firearm during the commission of a crime of violence. Freeman also pleaded to one count of conspiracy to interfere with commerce by robbery, while Moore pleaded to a count of interference with commerce by robbery. Three others also charged in the case - Hendrick Dwayne Lynn, 30, Chad Eric Haywood, 24, and Corinthians Lachell Phillips, 28, all of Houston – had previously also entered guilty pleas for their roles in the crimes. Lynn and Haywood were both convicted of two counts of interference with commerce by robbery, while Lynn and Phillips also admitted to the conspiracy charge. Haywood also pleaded guilty to a count of discharging a firearm during a crime of violence.
Loomis Armored US Inc., who operated the trucks during the alleged robbery and robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Lynn, Haywood and Moore were charged with their involvement in the Aug. 7, 2009, attempted robbery of a Loomis armored truck at the Bank of America at 3704 Old Spanish Trail in Houston. Lynn drove to the location, at which time Haywood and Moore, who were armed with Glock pistols, jumped out and shot at the guard. The guard has since recovered. The guard had been filling an ATM machine, but it was already locked and no money was obtained.
The second incident occurred on Nov. 21, 2009, at which time another guard was shot. On that date, Lynn drove Freeman and Haywood to Senor Check Cashing Store #2 located at 5950 S. Gessner Rd. in Houston. Freeman fired his pistol and shot in the direction of the guard. The guard was hit, but survived. On that same date, Phillips drove a second vehicle to the Gessner location and, following the robbery, switched vehicles with Haywood, Freeman and Lynn.
The conspiracy charge and the convictions for interference with commerce by robbery both carry as possible punishment up to 20 years in prison as well as a possible $250,000 fine. Haywood, Moore and Freeman will also face at least an additional 10 years in federal prison for discharging a firearm during the commission of the robberies which must be served consecutively to the other terms imposed.
U.S. District Judge Gray H. Miller, who accepted the guilty pleas, has set sentencing for Freeman and Moore for July 10, whiel the remaining defendants are set for July 12, 2013. With the exception of Phillips, all will remain in custody pending that hearing.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Four Men Sentenced in Massive Smuggling CaseRead the Press Release
HOUSTON – Four Mexican nationals have been sentenced to federal prison for their roles in a large human smuggling case that resulted in the discovery of more than 80 illegal aliens in a Houston residence, United States Attorney Kenneth Magidson announced today. Luis Trejo-Onofre, 30, Jose Santos-Solorzano, 24, Jose Victor Perez-Olivas, 42, and Gumecindo Jaime-Martinez, 37, all pleaded guilty Oct. 31, 2012, to conspiracy to harbor and transport illegal aliens.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty pleas, handed each man a 37-month-term of federal imprisonment. As illegal aliens, they are expected to face deportation proceedings following release from prison.
The case began on Sept. 18, 2012, when a Nicaraguan national flagged down a Houston police officer to report that her 17-year-old daughter was being held by an alien smuggling organization extorting additional smuggling fees as a condition of her release. The woman, who had traveled from San Antonio to pick up her daughter from the smuggling organization, was directed to wire $1,700 to Jalisco, Mexico, via Western Union. The smugglers instructed her to deposit the money if she wanted to see her daughter again.
After several calls, the woman was told to meet at a local drug store where she could have her daughter for $1500. An undercover agent accompanied the woman to the meeting and observed the girl in the suspects’ vehicle. Soon after, agents and officers blocked the vehicle and activated emergency lights and sirens. Trejo-Onofre and Santos-Solorzano were in the two front seats, but refused to open the doors and rammed one of the vehicles surrounding them. Agents with Homeland Security Investigations (HSI) broke one of the windows, rescued the girl and took the suspects into custody.
The minor female advised that she was held along with several other illegal aliens, including children, who were being held by armed smugglers and often mistreated. The residence was soon located on the 3400 block of Boxelder in Houston. Perez-Olivas was observed and followed as he left to purchase food at a local store and return to the residence. Agents and officers then began to secure the residence and identify those inside.
Most of the male subjects were only wearing underwear. One of the agents recognized Perez-Olivas among the group whom several of the aliens pointed out as a smuggler as well as Jaime-Martinez.
Several aliens were struck and some were locked in a closet. The smugglers carried weapons which were found and seized by agents at the residence. The smugglers also ordered some of the aliens to remove their clothing in order to make it more difficult for the aliens to attempt an escape.
A total of 82 aliens were being held in the house from six different countries. Eight of them were juveniles.
Trejo-Onofre, Santos-Solorzano, Perez-Olivas and Jaime-Martinez 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 HSI, the Texas Department of Public Safety and the Houston Police Department. Assistant United States Attorney Douglas Davis prosecuted the case.
Corpus Man Gets Maximum Sentence for Unlawful Manufacturing and Trafficking of FirearmsRead the Press Release
CORPUS CHRISTI, Texas – Michael Yarbrough, 22, of Corpus Christi, has landed in federal prison for 10 years for the unlawful manufacture and trafficking of AK-47 type firearms, United States Attorney Kenneth Magidson announced today.
Yarbrough was indicted along with Ashley Yarbrough aka Ashley Phillips, 25, and Stephen Atkinson, 29, in July 25, 2012, and arrested shortly thereafter. Michael and Ashley Yarbrough entered their guilty pleas before U.S. District Judge Nelva Gonzales Ramos a few days prior to trial on Jan. 8, 2013, while Atkinson had previously entered a plea of guilty in September 2012.
Today, Judge Ramos handed Michael Yarborough a term of 120 months in federal prison, the statutory maximum allowed by law. The sentence will be followed by a three-year-term of supervised release. Evidence presented at the sentencing hearing included Michael Yarbrough’s purchase of more than 900 parts kits and firearm receivers over a seven-month period, totaling more than $200,000. Also, evidence was presented that Yarbrough was selling the firearms to someone on the Mexico-U.S. border for further transport into Mexico. Several of the AK-47s manufactured by Michael Yarbrough have been seized in Mexico, including one seizure where three men were killed. The government’s evidence included the fact that this was the largest gun seizure in the history of the Corpus Christi Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Ashley Yarbrough, who had pleaded guilty to a lesser charge of making a false statement to federal agents was also sentenced today to three years probation. Atkinson is set for sentencing on May 1, 2013.
Michael Yarbrough and Atkinson were convicted of one count of unlawful manufacturing of firearms between Jan. 1, 2011, and July 2012. Michael Yarbrough also pleaded guilty to one count of transferring firearms knowing that a felony was to be committed. Ashley Yarbrough entered a plea of guilty to one count of making a materially false statement to federal agents regarding the gun activity going on at her residence.
This investigation began on Aug. 15, 2011, with the discovery of an AK-47 manufacturing business at a residence during the execution of an arrest warrant by United States Marshals in Corpus Christi. At that time, deputies encountered several individuals employed by Michael Yarbrough at a Corpus Christi residence. After agents obtained a search warrant, several fully assembled AK-47 firearms were seized along with multiple handguns, gun parts and firearms in various stages of completion. Agents also discovered duffle bags full of fully assembled AK-47 firearms, ammunition magazines and bandoliers. None of the seized firearms had serial numbers and none of the individuals present has a Federal Firearms License.
Agents have also uncovered a great deal of information regarding Michael Yarbrough and the people he employed to build AK-47 firearms for him. Agents discovered Michael Yarbrough sold fully assembled AK-47 firearms with no serial numbers in McAllen, at least 11 of which have been traced in Mexico by the unique tool markings on the firearms and other unique identifiers.
Michael Yarbrough will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Organized Crime Drug Enforcement Task Force investigation leading to the criminal charges was conducted in Corpus Christi lead by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Corpus Christi Police Department, the Texas Department of Public Safety, the Nueces County Sheriff’s Office, the Nueces County Probation Department and the United States Marshals Service. This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Husband and Wife Guilty of Falsifying Client Tax ReturnsRead the Press Release
HOUSTON – Marlin Jermaine Beckett and Gia Cooper Beckett have been convicted of tax fraud, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI).
The Becketts are husband and wife tax return preparers. Both were charged in separate, but related cases just last month. According to the factual basis in support of their respective pleas, they each admitted they claimed false business mileage deductions for local clients that fraudulently increased tax refunds by approximately $360,000 for tax years 2006 through 2009.
Just a short time ago, Marlin Beckett entered a guilty plea before U.S. District Judge Nancy F. Atlas, while Gia Beckett pleaded guilty last week. Both are set for sentencing on Sept. 24, 2013, at which time, each faces up to three years in prison and $250,000 fine. The plea agreement also requires that both defendants make full restitution for all of the fraudulent refunds.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Guilty Pleas Entered in Family-Run Tax Fraud SchemeRead the Press Release
BROWNSVILLE, Texas – Judy Lynn McCune, Loretta Ann McCune and Rania Ann Sanchez have pleaded guilty for conspiring to defraud the federal government in a scheme to prepare federal tax returns and cash refund checks in the name of deceased individuals, United States Attorney Kenneth Magidson announced today along with Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz.
Loretta Ann McCune and Sanchez entered their pleas just moments ago before U.S. District Judge Andrew S. Hanen, while Judy Lynn McCune pleaded guilty on April 8, 2013.
Judy Lynn McCune admitted she recruited members of her family, including her mother, Loretta Ann McCune, and her sister, Sanchez, into the scheme. The conspiracy involved obtaining Social Security numbers and dates of birth for deceased individuals through the Internet and then filing both paper and electronic federal income tax returns using the identifiers of these deceased individuals. The refunds were directly deposited in the personal bank account or mailed to the personal addresses of the accused. The total scheme consisted of approximately 340 false claims totaling $763,124 in filed false claims.
The three women face up to 10 years in federal prison as well as a possible $250,000 fine at their sentencing, which has been set for July 15, 2013, at 8:30 a.m. before Judge Hanen. They were permitted to remain on bond pending that hearing.
Robert and Edward Gutierrez, Judy Lynn McCune’s sons, are also charged in the scheme and are currently set for trial in June 2013. They are presumed innocent unless convicted through due process of law.
The case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Karen Betancourt.
Ethan Allen Insurance Scam Sends Another to Federal PrisonRead the Press Release
HOUSTON – Robert Steve Mills, 58, of Bonita Springs, Fla., has been ordered to federal prison following his conviction of conspiracy to launder money, United States Attorney Kenneth Magidson announced today. Mills pleaded guilty July 26, 2012, to the charge in relation to the Ethan Allen Insurance Scam.
Today, U.S. District Judge Sim Lake, who accepted the guilty plea, handed Mills a sentence of 120 months in federal prison. He was further ordered to pay a $2,455,531 in restitution and will also be required to serve three years of supervised release following completion of the prison term.
Mills had admitted to conspiring to launder the proceeds of a fraud scheme that sold fake liability insurance policies through “benefit associations” operated from Texas called International Property Owners Association Ltd. and Global Property Owners Association Inc. and through a company domiciled in Pago Pago, American Samoa, called American Transport Insurance Corporation. The fake insurance was purchased by apartment complexes, condominium associations, bars, restaurants, trucks, taxi cabs, charter aircraft services and other businesses in the United States and Caribbean. One company that purchased the insurance was Shoreline Cruises Inc. which operated a 40-foot tour boat called the Ethan Allen on Lake George, N.Y. The tour boat operator discovered its insurance policy was fictitious after the Ethan Allen sank on Oct. 2, 2005, in a tragic accident that claimed the lives of 20 elderly tourists.
Mills has been in custody since Jan. 10, 2011, when a U.S. magistrate judge found he presented a serious risk of flight, having fled the United States in 2009 because of the government’s investigation.
Three others have also been convicted in this scheme. Christopher Purser pleaded guilty to conspiracy to commit wire fraud, while Edmund Benton and Malchus Irvin Boncamper pleaded guilty to conspiracy to launder money. Purser previously received a sentence of 188 months, while Boncamper and Benton are serving 97 and 120 months in prison, respectively.
The convictions were the result of an intensive investigation conducted by Internal Revenue Service – Criminal Investigation with assistance from Homeland Security Investigations and the Texas, New York and California Departments of Insurance. During this four-year investigation, the U.S. government also received extensive and valuable assistance from the governments of St. Kitts and Nevis and also St. Vincent and the Grenadines. Investigators also received valuable assistance from the governments of The Bahamas, Nicaragua, The Philippines and Australia.
Assistant U.S. Attorneys John R. Lewis and Belinda Beek are prosecuting the case.Bryan Man Convicted in TSU Bomb Threat CaseRead the Press Release
HOUSTON – Dereon Tayronne Kelley, 22, of Bryan, has been found guilty on all counts for communicating a bomb threat to an academic institution, United States Attorney Kenneth Magidson announced today. The verdict was returned less than an hour ago after two days of trial and approximately one hour of deliberation.
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.
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.
U.S. District Judge Lynn Hughes, who presided over the trial, has set sentencing for May 2013, at which time Kelley faces up to 10 years in federal prison and a possible $250,000 fine.
The case is being prosecuted by Assistant United States Attorney S. Mark McIntyre and Craig Feazel.
Houston Man Gets 27 Years for Multiple Child Pornography ConvictionsRead the Press Release
HOUSTON – Guy Christopher Brogdon, 34, of Houston, has been sentenced to federal prison following two convictions of production of child pornography and another count of possession of child pornography, United States Attorney Kenneth Magidson announced today. The sentence was handed down on Friday, April 5, 2013, by U.S. District Judge Melinda Harmon.
On Dec. 20, 2012, Brogdon pleaded guilty. Today, Judge Harmon handed him a 27-year-term for the production counts and 10 years for the possession of child pornography, to be served concurrently. Upon release from prison, he will be on supervised release for 25 years and required to register as a sex offender.
The investigation revealed Brogdon took child pornography photographs of two very young girls for whom he was caring. Brogdon produced more than 200 images, though not all the child pornography involved the girls. Three of the victims’ relatives appeared and spoke at the sentencing, describing the effects Brogdon’s criminal acts have had. Brogdon was further ordered to pay restitution.
The Sugar Land Police Department and Houston FBI investigated.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Woodlands Man Convicted of Using Fake CIA CredentialsRead the Press Release
HOUSTON - Paul Alan White, aka Jonathan Alan Davenport, 57, of The Woodlands, has entered a plea of guilty to two counts alleging he impersonated a public servant, United States Attorney Kenneth Magidson announced today. The plea was entered late yesterday before U.S. District Judge Ewing Werlein Jr.
According to the factual basis in support of the plea, White posed as a CIA agent to others at different times during 2011 and 2012 in order to obtain personal information from individuals and to have authorities give him privileges as well as official record documents.
During March 2011, White had convinced a co-worker that he worked with Special Ops within the CIA and that they had to fill out an application form for a security clearance with the CIA. White apparently obtained the form from the Internet. The co-worker completed the form, which included personal information, such as names of family members and friends, education, employment history and personal identification data such as a Social Security number, a Texas Driver’s license number and a U.S. passport number. As directed by White, the co-worker also ordered their own credit report and gave White a copy of their passport.
The next month, White also attempted to recruit the co-worker’s friend from the co-worker’s Facebook site, using an alias. White reported to be conducting a reference check and also tried to recruit them for a position with the CIA. At the request and demand of White, pretending to act as an agent under the authority of the CIA, the friend sent the security clearance form via Fed-Ex with their personal information on it along with a copies of their birth certificate, Social Security card, driver’s license and passport.
Also that month, White introduced himself to Texas Department of Public Safety troopers as an agent working for the CIA. White showed a badge and a credential thought to be from the CIA, and stated he had retired from CIA and was rehired to run “backgrounds” on people. White, while pretending to be an officer and employee of the United States, asked the trooper to run a criminal history check on his co-worker. White represented the request as an “official request” from a CIA officer. The trooper did so and provided the result.
Later, the CIA was contacted to conduct a check for any and all employment either directly or indirectly of White, aka Davenport. The CIA confirmed he did not work for the agency in any capacity. A search warrant was executed at White’s home revealed several false and fraudulent purported official U.S. government identifications and badges allegedly belonging to the CIA.
Judge Werlein has set sentencing for June 28, 2013, at which time he faces up to three years in federal prison and a possible $250,000 fine on each count. White will remain in custody pending that hearing.
The case was investigated by the FBI and Houston Police Department. Assistant U.S. Attorney (AUSA) Joe Porto is prosecuting the case. AUSA Ken Dies handled the hearing yesterday.
Guilty Pleas Entered in Counterfeit DVD/CD RingRead the Press Release
William Joseph Henneberger, 32, Ruth Gloria Henneberger, 36, Daniel Justino Diaz, 34, Vanessa Pecina, 30, Leticia Perez Aguilar, 39, Joe Silvas, 43, and Joe Cruz Hernandez, 31, have all admitted to reproducing and distributing 10 or more copyrighted works during a 180-day period. The total amount of combined losses as calculated by the Recording Industry Association of America (RIAA) and the Motion Picture Association of America (MPAA) are $690,297.67.
The convictions come as a result of a year-long investigation into the manufacture and distribution of counterfeit DVDs and music CDs in the Corpus Christi area. With the exception of Silvas, a local DJ who owned Bomb Records, the remaining six defendants were all vendors at a Corpus Christi flea market. All defendants were identified as being involved in the manufacture and distribution of counterfeit DVDs and music CDs. As a result, agents obtained federal search warrants in August 2012 for three residences and Bomb Records, all located in Corpus Christi. During the execution of the warrants, agents seized more than 58,000 pirated DVDs and CDs along with production materials including computers and DVD duplicators.
All seven convicted today face up to five years imprisonment and a fine up to $250,000 at their sentencing hearing, set for July 9, 2013.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by Homeland Security Investigations, Corpus Christi Police Department Organized Crime Unit, Kingsville Specialized Crimes Task Force, Customs and Border Protection, RIAA and MPAAding Industry Association of America and the Motion Picture Association of America. This case is being prosecuted by Assistant United States Attorney Hugo R. Martinez.
Federal Judge Hands Down Conviction in Bankruptcy Fraud Bench TrialRead the Press Release
HOUSTON – Darren David Chaker, 41, of Beverly Hills, Calif., and Las Vegas, Nev., has been found guilty of bankruptcy fraud, United States Attorney Kenneth Magidson announced today.
U.S. District Judge Nancy Atlas found Chaker guilty less than an hour ago of one count of bankruptcy fraud following a five-day bench trial.
The evidence at trial showed that Chaker filed bankruptcy under Chapter 13, in which a debtor is required to propose a plan of reorganization to pay the debtor’s creditors over time. The debtor is required to pay at least as much as the creditors would receive if the debtor’s assets were liquidated on the date of the filing of the bankruptcy petition. The process is designed to achieve an orderly transfer of a debtor’s assets to creditors from available assets truthfully and accurately disclosed and to provide a “fresh start” to honest debtors by allowing them to obtain a discharge or release of debt incurred prior to filing bankruptcy.
According to the evidence, Chaker filed for bankruptcy under Chapter 13 on March 6, 2007. Specifically, on or about March 26, 2007, during a bankruptcy hearing before the Honorable Jeffrey Bohm, while under oath, Chaker falsely and fraudulently represented to the court that the property was never leased out prior to January 2007, when he had in fact previously contracted with a realtor who secured at least two rental contracts with Chaker personally. Chaker failed to disclose income and the existence of past and present residential leases of a residential property facing foreclosure in Houston to his creditor, Saxon Mortgage in the hearing and to the court.
In order for the bankruptcy system to work for all parties, it is imperative for the debtor to be truthful and forthright in all aspects of the bankruptcy process. The bankruptcy system is based on an honor system - the debtor agrees to provide all of the necessary information requested by the trustee and to assist the trustee in collecting all assets of debtors and comply with the court’s orders to obtain the relief desired under the chapter the case was filed.
Chaker is scheduled to be sentenced by Judge Atlas on June 20, 2013, at 1:30 p.m., at which time he faces a maximum sentence of five years imprisonment as well as a $250,000 fine.
This case was investigated by the FBI with assistance from the United States Trustee’s Office and is being prosecuted by Assistant United States Attorneys Carolyn Ferko and Sharad Khandelwal.
Man Charged with Sexual Assault of A Minor on Cruise ShipRead the Press Release
GALVESTON, Texas – Todd Eric Nordahl, 49, of Tucson, Ariz., has been arrested on charges that he had sexual contact with a minor while in the special maritime and territorial jurisdiction of the United States, United States Attorney Kenneth Magidson announced today.
Nordahl was arrested Sunday, March 31, 2013, after the cruise ship returned to port. He is set for a probable cause hearing before U.S. Magistrate Judge John R. Froeschner Thursday at 2:00 p.m.
According to the criminal complaint, on or about March 27, 2013, Nordahl knowingly engaged in sexual contact with a boy he knew to be a minor.
The case arose after a Royal Caribbean security officer contacted the FBI, reporting allegations made by a 15-year-old boy on board the Mariner of the Seas while in international waters.
Nordahl allegedly provided an alcoholic beverage to the minor victim and purportedly made sexual advances toward him. After a brief period of “cuddling,” Nordahl performed oral sex on the minor boy, according to the criminal complaint.
The FBI investigated with the cooperation of Royal Caribbean Cruise Lines. Assistant United States Attorney Sherri. L. Zack is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Pho Danh Restaurant Owner Pleads Guilty to Filing False Tax ReturnRead the Press Release
HOUSTON – Danh Ngoc Nguyen, co-owner of Pho Danh Restaurant in Houston, has entered a plea of guilty to filing of a false federal 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). The plea was entered late yesterday.
Nguyen co-owned and operated a Pho Danh Restaurant at 11209 Bellaire Boulevard in Houston during 2003 through 2006. Nguyen admitted in the plea agreement to filing false federal income tax returns for the restaurant and for himself for each of those years that understated both the income of the restaurant and his personal income from the restaurant by approximately $240,356. As part of his plea, Nguyen has agreed to make full restitution to the Internal Revenue Service (IRS) estimated to be at least $526,157 and to remain subject to additional IRS assessments of taxes, interest and penalties due as result of these offenses.
U.S. District Judge Lynn N. Hughes set a sentencing date of April 1, 2014, at which time Nguyen faces up to three years imprisonment and a criminal fine of up to $250,000.
IRS-CI investigated and Assistant United States Attorney Jimmy Sledge Jr. is prosecuting the case.
7 Enter Guilty Pleas in Operation Prison Cell Racketeering CaseRead the Press Release
CORPUS CHRISTI, Texas – Seven former Texas Department of Criminal Justice (TDCJ) correction officers have pleaded guilty in the large-scale racketeering case involving the McConnell Unit in Beeville, United States Attorney Kenneth Magidson announced today.
The hearing lasted all day and concluded less than an hour ago. Former McConnell Unit employees Stephanie Deming, 23, of Beeville, Christy Nesloney, 27, of Cuero, Kimberly Koenig, 32, of Victoria, Yvonne Sandoval, 36, of Sinton, Jaime Garza, 38, of Santa Elena, each entered pleas of guilty to one count of racketeering. Former correction officer Justin Leonard, 23, of Conroe, entered his guilty plea to possession with intent to distribute cocaine. The former officers admitted to acts of bribery and drug trafficking inside and outside the prison system. Not charged in the racketeering count, former correction officer Jamar Green, 29, of Refugio, pleaded to possession with intent to distribute ecstasy. These seven defendants are set for sentencing June 24, 2013.
A total of 30 defendants were taken into custody in late February in relation to this case, including 17 former TDCJ officers. Two other defendants remain fugitives. The cases against the other 25 defendants are still pending and they are presumed innocent unless and until convicted through due process of law. They are set for trial July 8, 2013. The indictment remains sealed as to those charged but not as yet in custody.
The arrests of those charged were a joint effort between TDCJ-Office of Inspector General and federal authorities to attempt to break the “culture of corruption” that permeated the McConnell Unit Prison during a period between 2005 to the present. State and federal authorities worked together in a determined effort to disrupt and dismantle the violent criminal gangs who were profiting through the corruption of guards at the prison.
According to the indictment, 14 former TDCJ correction officers were part of a criminal enterprise that engaged in bribery and narcotics trafficking. The indictment details specific acts, wherein the correction officers assisted prisoners incarcerated in the TDCJ McConnell Unit Prison in Beeville by smuggling cellular telephones and drugs into the prison system. The drugs and phones were allegedly sold inside the prison to other inmates. The phones were used by inmates to assist in their coordination of criminal activities outside the prison, according to the allegations.
The investigation was initiated in 2009 when several Aryan Circle Gang Members were apprehended attempting to transport stolen vehicles from Corpus Christi to Brownsville. The vehicles were destined to be smuggled across the border and sold to Mexico Cartel members. The operation was coordinated by inmates incarcerated at the McConnell Unit through the use of illegal cell phones.
The resulting investigation led to a December 2010 federal indictment charging 14 alleged members and associates of the Raza Unida Street and Prison Gang with committing violent acts to support racketeering (VICAR). These violent acts included home invasions, shootings and conspiracy to commit murder. During the course of the investigation, agents and officers seized approximately 13 pounds of crystal methamphetamine with an estimated street value of more than $300,000. Additionally, seven assault rifles, 14 pistols, five shotguns, five bullet proof vests and approximately 1,000 rounds of ammunition were seized from the gang. All were subsequently convicted, two of whom were sentenced to life imprisonment.
The overall case is the result of a four-year investigation conducted by the U.S. Attorney’s Office, Homeland Security Investigations, TDCJ-OIG, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Corpus Christi Police Department Gang and Organized Crime Units, U.S. Postal Inspection Service and the Bee County District Attorney’s office.
The case is being prosecuted by Assistant U.S. Attorneys Mark Patterson and Michael Hess.
Two Alice Men Arrested for Aiming Laser Pointer at HelicopterRead the Press Release
CORPUS CHRISTI, Texas - Joshua Nathaniel Vela and Jon David Lopez, both 21 and from Alice, have been arrested following the return of a two separate indictments alleging felony charges of aiming a laser pointer at an aircraft, United States Attorney Kenneth Magidson announced today.
The indictments were returned on March 27, 2013, and both defendants surrendered to the FBI today. Lopez was brought before U.S. Magistrate Judge Brian Owsley who ordered he be detained pending a detention hearing set for April 4, 2013, while Vela appeared before U.S. Magistrate Judge B. Janice Ellington and was released on a $20,000 personal recognizance bond. Vela and Lopez are both set for arraignment on April 4, 2013, in Corpus Christi.
According to the indictment, on Dec. 27, 2012, each knowingly aimed the beam of a laser pointer at the Halo Flight helicopter “Halo Three” while the aircraft was in the special aircraft jurisdiction of the United States.
In response to a growing number of incidents of pilots being distracted or even temporarily blinded by laser beams, Congress passed the FAA Modernization and Reform Act of 2012, which specifically prohibited aiming a laser pointer at an aircraft.
If convicted, Vela and Lopez each face up to five years in federal prison and a possible $250,000 fine.
The cases were investigated by the FBI with the assistance of Robstown Police Department. The cases are being prosecuted by Assistant United States Attorney Robert D. Thorpe Jr.
Houston Man Indicted for Sex Trafficking of MinorsRead the Press Release
HOUSTON – Tevon Harris aka “Da Kidd” and “King Kidd,” 21, of Houston, has been ordered detained pending trial on charges related to the trafficking of minors for commercial sex, United States Attorney Kenneth Magidson announced today.
Scott made his initial appearance today before U.S. Magistrate Judge Francis Stacy. The indictment was returned March 20, 2013, and he was subsequently arrested March 26 by members of the Houston FBI Innocence Lost Task Force. Harris is charged with two counts of trafficking of a children under 18 for commercial sex while knowing they were underage and using force, fraud or coercion to cause them to engage in a commercial sex act. The crimes allegedly occurred in January and July of 2012.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using statements from victims as well as on line advertisements for the victims’ services and hotel records from several hotels.
At the detention hearing today, information was presented that in order to gain the trust of victims, whom he allegedly met on social networking sites, Harris would tell them he was going to help them become models. He would allegedly pick them up, take them to motel rooms and force them to have sex with him. The allegations further indicate he would also deprive them of their cell phones, thereby cutting off their communication with the outside world. In court, it was also presented that he would use violence to keep the minors cooperating with him. In one instance, he allegedly deprived a victim of food more than four days period because he did not believe she was servicing his clients well enough, according to allegations. He allegedly also supplied her with marijuana and alcohol. It is also alleged that the victims were photographed and their images were posted in online ads for prostitution. All monies they earned were kept by Harris, according to the information presented in court. One of the victims was allegedly beaten with a towel rack torn from a motel room wall when Harris found her using the phone to call her mother for help.
Harris was ordered detained pending trial, currently set before United States District Judge Sim Lake on June 4, 2013.
Harris faces up to life imprisonment and a maximum fine of $250,000. Upon completion of any prison term imposed, Harris also faces a maximum of lifetime term of supervised release and he will be required to register as a sex offender.
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack of the Southern District of Texas.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Doctor Pleads Guilty in $19+ Million Health Care Fraud SchemeRead the Press Release
HOUSTON – Donald Gibson II, 56, of Richmond, has been convicted of conspiracy to commit health care fraud relating to medically unnecessary diagnostic testing and physical therapy, United States Attorney Kenneth Magidson announced today.
Gibson entered a plea of guilty just minutes ago, admitting he conspired to commit health care fraud along with co-defendant, Sunday Joseph Edem, 53, also of Richmond.
Gibson ordered, prescribed and authorized medically unnecessary diagnostic tests and other procedures which included allergy tests, pulmonary function tests, vestibular tests, urodynamic tests and physical therapy, among others. These services were then billed to Medicare and Medicaid for payment under Gibson’s billing number.
From January 2007 through January 2012, Gibson caused more than $19.4 million in medical claims to the Medicare and Texas Medicaid Programs. As a result, Medicare deposited approximately $8.5 million into a bank account owned and controlled by Gibson.
Edem operated medical clinics under the names of other individuals to conceal his financial interest in the businesses. Edem and Gibson conspired with one another to cause the submission of false claims to the Medicare and Medicaid programs and share in the proceeds. Gibson and Edem paid patient recruiters for referring Medicare/Medicaid beneficiaries and also paid Medicare beneficiaries for showing up at the medical clinics.
Gibson is set for sentencing on July 1, 2013, at which time he faces up to 10 years in federal prison and a possible $250,000 fine.
Edem also pleaded guilty to the same charge on Feb. 25, 2013. He is scheduled to be sentenced on May 28, 2013.This case is the result of a joint investigation involving multiple federal and state agencies including agents and investigators of the U.S. Department of Health and Human Services – Office of Inspector General, Railroad Retirement Board, Secret Service, Drug Enforcement Administration, FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Andrew Leuchtmann are prosecuting this case.
Vice-President Indicted for Bank EmbezzlementRead the Press Release
HOUSTON – A Houston man has appeared for arraignment in a 12-count indictment alleging bank embezzlement, United States Attorney Kenneth Magidson announced today.
A federal grand jury returned the sealed indictment against Shawn Nelson, 39, on Feb. 20, 2013. He was arrested Friday, March 22, 2013, made his initial appearance the following Monday and was arraigned today by U.S. Magistrate Judge Frances Stacy. He was permitted release pending further criminal proceedings.
According to the indictment, Nelson was a vice-president of lending at Members Choice Credit Union. From 2001 through 2009, Nelson allegedly opened signature loan accounts in his friends’ and family members’ names without their authorization and subsequently began withdrawing money from those accounts. By the time the fraud was discovered, Nelson had withdrawn more than $340,000, according to allegations in the indictment.
If convicted, he faces up to 30 years in prison as well as a possible $1 million fine for each count. The United States is also seeking forfeiture of approximately $340,000.
The investigation was conducted by the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Sharad S. Khandelwal.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Illegal Alien Convicted of Assault of A Federal AgentRead the Press Release
LAREDO, Texas – Jose Alberto Izquierdo-Gonzalez, 26, an undocumented Mexican alien living in Laredo, has pleaded guilty to using a motor vehicle to assault a Border Patrol agent and to smuggling aliens, United States Attorney Kenneth Magidson announced today.
According to court records and testimony presented this morning before U.S. Magistrate Judge J. Scott Hacker, Izquierdo was seen loading persons onto his Ford F-250 truck on Jan. 8, 2013, near the Rancho Viejo Subdivision in Laredo. Agents observed the truck speed away from the riverbanks after the agents’ vehicles approached. After a short pursuit through a residential area which included the truck traveling on residential sidewalks and knocking down a stop sign, Izquierdo eventually lost control and stopped facing the agents’ vehicles.
With persons still in the bed of the pickup truck, Izquierdo rammed the Border Patrol vehicles, injuring one of the agents. He then sped away until he lost control again and crashed into a nearby ditch. Miraculously, the persons in the truck bed managed to remain in the truck, but were treated for injuries. Izquierdo was apprehended almost immediately by the agents after abandoning his truck and the passengers. Two passengers were identified as aliens illegally in the United States who said they had paid smugglers to get a ride from Izquierdo.
At today’s hearing, Izquierdo denied knowing there were persons in the bed of his truck, claiming he had just picked up his girlfriend and one other person and was giving them a ride.
Izquierdo will remain in custody pending his sentencing to be set at a later date. At that time, he faces up to 20 years for using a dangerous weapon, a Ford F-250 in this case, to assault a federal officer. For smuggling an alien illegally in the United States, he also faces a maximum 10-year term of federal imprisonment. Both crimes also carry up to a possible $250,000 fine.
The matter was investigated by the FBI and Homeland Security Investigations with the assistance of Border Patrol, Laredo Police Department and the Webb County Sheriff’s Department. Assistant United States Attorney Homero Ramirez prosecuted the case.