Southern District of Texas
Press releases recorded for this federal judicial district.
Houston Woman Convicted in Debt Relief ScamRead the Press Release
HOUSTON – Savannah Rae Williams, 25, of Houston, has been convicted of wire fraud in relation to a debt relief scheme operating throughout the area, United States Attorney Kenneth Magidson announced today. Set for trial next week, Williams entered a plea this morning.
Her co-defendant, Nathaniel Chilo aka Nathaniel O’Neil, 24, also of Houston, previously pleaded guilty for his part in the scheme. Chilo operated debt relief businesses in the Houston area under several different names including, but not limited to, Universal Restoration and C & N Recovery. Both Chilo and Williams have admitted they fraudulently represented that settlements has been arranged for an individual in Georgia, but then used that money for their own benefit.
On or about Sept. 16, 2011, a letter was sent to an individual in Georgia that falsely representing a settlement had been reached in the amount of $32,541.56 with one of the person’s creditors. As a result, the individual’s wife then wired monies to cover the settlement, but neither Chilo nor Williams ever paid the creditor.
A second email was sent the next month which indicated a settlement on another account in the amount of $35,409.18. That settlement was also fraudulent, but thinking it was a legitimate, the victim again wired the monies.
Williams and Chilo never arranged the settlements and never paid the creditors, but used the monies for their own benefit. They have both admitted they fraudulently received $67,950.74.
Both Williams and Chilo face up to 20 years in prison and a possible $250,000 fine at their respective sentencing hearings on Aug. 2 and June 27, 2013. Chilo is currently in custody pending that hearing, while Williams was permitted to remain free on bond.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.
Baytown Man Sent to Federal Prison for Massive Ponzi SchemeRead the Press Release
HOUSTON – Richard M. Plato, 65, of Baytown, has been ordered to federal prison for nearly 20 years following his convictions on several counts in relation to a mail and securities fraud conspiracy, United States Attorney Kenneth Magidson announced today. A federal jury convicted Plato on Sept. 24, 2012, after approximately four hours of deliberation and 10 days of trial.
Plato was subsequently convicted on one count of and five counts of mail fraud. Today, U.S. District Judge David Hittner, who presided over the trial, handed Plato the 235-month sentence. At the hearing today, the government detailed some of Plato’s previous offenses that have occurred over the past 24 years, and stated he stole money from investors in this case and spent it on “wine, women and song.”
In handing down the sentence, Judge Hittner noted that Plato had already committed three massive, multi-million dollar frauds before the one with which he was sentenced today. He read from some of the victims’ statements detailing the consequences Plato’s actions have had on them. One noted that senior citizens like him had used their savings to try to provide some comfort, but now have to modify their standard of living, while Plato continued to live his opulent lifestyle. Another stated that he had hoped to provide for his grandson’s education, but now that money is gone. He added that while this may have been short-term for Plato, the impact on his family and other victims carries life-long consequences.
Judge Hittner ordered Plato to pay restitution in the amount of $3,051,000.74. He will also be on supervised release for three years following completion of his prison term.
Plato owned and controlled Momentum Production Corporation in Baytown.
The Texas State Securities Board (TSSB) began investigating Plato in the fall of 2008 following several complaints by investors with Momentum. Investors from several states reported purchasing securities from Momentum, only to have Momentum default on the notes. The TSSB referred the matter to the United States Postal Inspection Service (USPIS) in 2010.
Evidence at trial indicated Plato had been convicted of fraud on three other occasions, once each in Texas, Florida and Louisiana. At the time the securities were sold, Plato was on supervised release and owed almost $30 million in restitution.Following his release from federal prison in 2002, Plato began acquiring various oil and gas interests in South Texas. Sometime thereafter, Plato formed Momentum and began directly and indirectly soliciting vulnerable persons throughout the United States to purchase promissory notes. Several of those investors testified at trial and described how they were assured of the investment’s safety, promised a high rate of return and told that the notes were secured by the oil and gas interests in South Texas. Although the notes were advertised as securities, they were never registered with any federal or state agency. Between June 2005 and December 2006, Plato sold more than $6 million worth of notes.
During the sale of these funds, Plato made various material misrepresentations and omissions, failing to disclose his criminal convictions and outstanding restitution obligations. In fact, Plato told investors the oil and gas collateral was owned “free and clear” of any claims, liens or other encumbrances and that, in the event of default in a particular fund, Momentum would substitute collateral from other funds to ensure payment. This was never done.Agents testified that Plato made periodic payments on the notes to keep his investors satisfied, using the money of other investors and the operating income from the various oil and gas interests. In 2006, however, those interests evidently stopped generating their projected income. At the same time, Plato and his associates were spending millions of dollars that should have been paid to investors. Momentum soon began defaulting on the notes.
The money trail shows that, in total, Plato received approximately $6.2 million from investors. Of this amount, approximately $2 million was diverted to Plato’s benefit.Plato 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 U.S. Postal Inspection Service with the invaluable assistance of the Texas State Securities Board. Assistant United States Attorney (AUSA) Sharad Khandelwal and Former AUSA F. Andino Reynal prosecuted the case.
Illegal Resident Gets Enhanced Sentence for Raping Undocumented Honduran AlienRead the Press Release
LAREDO, Texas – Juan De Dios Rodriguez, a 34-year-old Mexican National has been handed a 60-month-term of federal imprisonment for transporting an illegal alien, United States Attorney Kenneth Magidson announced today.
Rodriguez had been illegally living in the Laredo area after losing his border crossing card in 2003. While here, he became involved in transporting undocumented aliens for financial gain. Specifically, Rodriguez encountered an undocumented female from Honduras on March 15, 2012, who had never been to the United States and had limited education. At 11:30 p.m. on the same day of encounter, Rodriguez picked up the undocumented alien whom he was supposed to take to a tractor trailer for further transportation north.
However, he instead took her to a secluded area, where he sexually assaulted her for hours in a vehicle. Afterwards, he took her to a motel where he assaulted her again. In addition to the assault, he took $800 from the undocumented alien as a form of payment for smuggling fees.
Before pronouncing sentencing, the court noted that Rodriguez had previously demonstrated violent tendencies toward other women, who were never at fault. At the hearing, he again chose to not acknowledge his wrongdoing stating that the encounter was consensual. However, he had repeatedly threatened her to comply. Out of fear for her life, the undocumented alien did as she was told despite her contention that this was the worst pain she had ever experienced.
Upon recommendation of the government, the court upwardly departed from the U.S. Sentencing Guidelines by imposing the 60-month sentence based on the egregious conduct involved in the case in addition to prior incidents.
The case was investigated by Homeland Security Investigations and Laredo Police Department.
Assistant United States Attorney Suntrease Williams is prosecuting the case.
Suspected Pseudocop Pleads GuiltyRead the Press Release
BROWNSVILLE, Texas – Jose Luis Rodriguez-Treto, a 28-year-old Mexican citizen, has entered a plea of guilty to being an illegal alien in possession of a firearm, United States Attorney Kenneth Magidson announced today.
On Jan. 22, 2013, two Homeland Security Investigations (HSI) agents were in their unmarked government vehicle and moved to exit the highway. Rodriguez-Treto was driving his black Ford Escape and activated flashing white lights similar to those used in law enforcement vehicles from behind the agents. Based on the flashing lights and the type of vehicle, the agents believed they were being pulled over by an unmarked police vehicle.
However, rather than pulling them over, Rodriguez-Treto passed them with the vehicle still displaying flashing white lights in front and flashing red lights in the rear. As he passed, the agents noticed a car seat in the back seat and believed him not to be a law enforcement officer. In fact, they thought they were observing a pseudocop vehicle on its way to, or coming from, a crime.
Pseudocops are individuals who portray themselves as law enforcement for the purposes of committing crimes, primarily narcotics-related thefts of drugs or money.
The agents stopped Rodriguez-Treto, who was travelling with his wife and infant child. At that time, agents discovered a loaded pistol magazine in his pocket, a pistol hidden in the glove box, a pistol hidden in the diaper bag, a rifle under the back seat, police scanners, a badge stating “special police,” and other law enforcement paraphernalia. Rodriguez-Treto is a Mexican citizen with no legal status in the United States and admitted to owning the weapons.
Senior U.S. District Judge Hilda G. Tagle has set sentencing for June 26, 2013, at which time he faces up to 10 years imprisonment and a $250,000 fine. Rodriguez-Treto will remain in custody pending that hearing.
This case was investigated by HSI and is being prosecuted by Assistant United States Attorneys Joseph Leonard and Ana Cano.
Laredoan Sentenced to 10 Years for Marijuana ConspiracyRead the Press Release
LAREDO, Texas – Jesus Alberto Rodriguez, of Laredo, has been ordered to prison for possessing with intent to distribute 426 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. He pleaded guilty in October 2012.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced Rodriguez, 36,to 121 months in federal prison to be followed by a five-year-term of supervised release.
In the summer of 2010, Rodriguez discussed with a confidential source about moving a large quantity of marijuana. The discussions concerned Rodriguez obtaining transportation for marijuana he said was coming from the Zapata area to Laredo, the risk due to law enforcement observation in the area and the confidential source acquiring a driver and a means of transportation to get the marijuana to Dallas. As a result of these discussions, Rodriguez arranged to deliver the marijuana, which was going to be approximately 700 to 800 pounds, to the parking lot of a local toy store on San Bernardo Street in Laredo in two separate trucks on July 6, 2010.
Accordingly, a Drug Enforcement Administration (DEA) undercover agent waited in the parking lot, posing as a driver working for the source. Shortly thereafter, Rodriguez said the delivery was going to be in two parts: one truck was going to contain 21 bundles and the other was going to have 10 for a total of 31 bundles of marijuana. The agent then witnessed a white Ford F-250 pull into the parking lot next to the agent. The driver of the Ford F-250 was later identified as a co-defendant, Juan De Dios Cardenas.
De Dios Cardenas told the agent that after he delivered the load, to return to the parking lot where he was going to receive another truck load of marijuana. The agent then got inside the truck and drove to a nearby warehouse, at which time several DEA agents unloaded a total of 21 bundles of marijuana.
The undercover agent then returned to the same parking lot with the empty Ford F-250. When he did, he came upon a black Chevrolet Tahoe driven by another co-defendant, Juan Carlos Gonzalez-Vargas. De Dios Cardenas then got into the Ford F-250 passenger seat with the undercover agent and directed him to a movie theater a short distance away, where the second load vehicle was located. There, De Dios Cardenas pointed out a parked red Ford Explorer in the parking lot which contained the second part of the load of marijuana delivery that Rodriguez had arranged.
DEA Agents weighed and tested the bundles and determined the total weight to be 432.6 kilograms.
At the time of his guilty plea, Rodriguez admitted he had made telephone calls arranging for the delivery of the marijuana.
During the hearing today, Judge Marmolejo Garcia determined Rodriguez was a manager or supervisor of this July 2010 load and was held accountable in relevant conduct for three other loads of marijuana totaling more than 5,500 kilograms from March through June 2008.Rodriguez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. De Dios Cardenas and Gonzalez-Vargas have each also entered pleas and were sentenced to 60 and 63 months, respectively.
The case was investigated by the DEA and prosecuted by Assistant United States Attorney Roberto F. Ramirez.
Smugglers Head to Federal Prison for Raping and Threatening Undocumented AliensRead the Press Release
McALLEN, Texas ‐ Miguel Aceves, 40, of El Salvador, and Valentine Pena-Roman, 41, of Mexico, have been sentenced to significant federal prison time for smuggling undocumented aliens, United States Attorney Kenneth Magidson announced today.
Aceves and Pena harbored undocumented aliens in Alamo from Oct. 1 to Oct. 4, 2012. While at the stash house, multiple undocumented aliens were threatened by Aceves and Pena that they would be hurt or killed if they did not pay more money. During this time, Aceves sexually assaulted one undocumented alien. Further investigation revealed that in September 2012, he had also sexually assaulted another female undocumented alien in San Juan, Texas.
Today, U.S. District Judge Randy Crane sentenced Aceves and Pena to 96 and 70 months confinement, respectively. Upon imposing the sentence, the court noted that Aceves was calculated in the ways in which the females were separated from the other undocumented aliens. Judge Crane enhanced Aceves’ sentence based on the repeated sexual assaults of the victims.
The investigation leading to the charges against Aceves and Pena was conducted by Homeland Security Investigations, Border Patrol, Alamo Police Department and the Hidalgo County Sheriff’s Office.
Assistant United States Attorneys Kristen Rees and Kimberly Ann Leo prosecuted the case.
Smuggler Gets Enhanced Sentence Due to Rape of Undocumented AlienRead the Press Release
McALLEN, Texas ‐ Juan David Alviso-Gonzalez, 18, of Mexico, has been sentenced to jail time for smuggling undocumented aliens, United States Attorney Kenneth Magidson announced today.
From Oct. 21 to Oct. 22, 2012, Alviso-Gonzalez harbored undocumented aliens in Mission, and he and others attempted to extort more smuggling fees from the undocumented aliens. During this time, Alviso sexually assaulted one undocumented alien and attempted to sexually assault another. On Oct. 22, the undocumented aliens called 911 for help, after which time law enforcement arrived and soon arrested Alviso-Gonzalez.
Today, U.S. District Judge Randy Crane sentenced Alviso to 60 months imprisonment to be followed by three years of supervised release. Upon imposing the sentence, the court noted that the defendant preyed upon the vulnerability of the victim being that she was here in the United States illegally. The sentence against Alviso-Gonzalez was enhanced because he raped the victim multiple times.
The investigation leading to the charges against Alviso was conducted by Homeland Security Investigations, Border Patrol and the Hidalgo County Sheriff’s Office.
Assistant United States Attorneys Kristen Rees and Kimberly Ann Leo prosecuted the case.
One Guilty in Multimillion Dollar Cocaine ConspiracyRead the Press Release
LAREDO, Texas – Jose Gomez-Ramirez, 30, has entered a plea of guilty to conspiracy to possess with the intent to distribute five kilograms or more of cocaine, United States Attorney Kenneth Magidson announced today.
A sealed indictment was returned by a grand jury on Nov. 6, 2012. The indictment alleged a drug trafficking organization transported more than 200 kilograms of cocaine from 2010 to 2011, much of which was intercepted by authorities en route to Dallas. Agents also intercepted nearly $1.5 in cash proceeds related to drug trafficking by this organization. Gomez-Ramirez was arrested after crossing into the United States from Mexico.
Today, U.S. District Judge Diana Saldaña accepted the plea of Gomez-Ramirez, of Nuevo Laredo, Mexico, to this conspiracy. In the guilty plea, he admitted he helped with the transportation of drugs from Mexico to Dallas and the surrounding areas. Specifically, Gomez-Ramirez admitted to coordinating the transportation of a 123.4 kilogram seizure of cocaine on Feb. 11, 2011.
Gomez-Ramirez faces a mandatory minimum sentence of 10 years and a maximum of life in prison as well as a $10 million fine. The United States is also seeking a money judgment in the amount of $5,303,660 based on the amount of cocaine and money transported by the organization during the span of the conspiracy.
The case is the result of a four-year Organized Crime Drug Enforcement Task Force investigation dubbed Operation Roadblock led by the Drug Enforcement Administration with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service. Assistant United States Attorney James Hepburn is the Assistant United States Attorney handling the case.
Last of Los Zetas Money Launderers Ordered to PrisonRead the Press Release
LAREDO, Texas – Laredoans Laurencio Montes, 43, and Jose Luis Gonzales, 28, have been sent to federal prison for their roles in an Organized Crime Drug Enforcement Task Force (OCDETF) investigation relating to the laundering of millions of drug proceeds by Los Zetas, United States Attorney Kenneth Magidson announced today. Montes, aka “Yeyo,” and Gonzalez each entered a plea of guilty to one count of conspiracy to launder drug proceeds on Oct. 30, 2012.
Today, U.S. District Court Judge Marina Garcia Marmolejo sentenced Montes, considered to be an organizer, to 120 months in federal prison. A final order of forfeiture was further ordered in the amount of $6 million against him. Gonzales, determined to be a minimal participant in the conspiracy, received a 60-month term of imprisonment to be followed by three years of supervised release. The court entered a final order of forfeiture against Gonzales in the amount of $2,999,319.
OCDETF Operation El Chacal was initiated in 2010 and culminated in several indictments being returned in November 2011 in Laredo and San Antonio as well as Chicago, Ill. Agents had identified a Los Zetas cell leader of a significant money laundering organization based in Nuevo Laredo, Tamaulipas, Mexico who laundered drug proceeds for the Zeta drug trafficking organization. The investigation revealed the organization shipped multiple loads of cocaine from Mexico to major distribution centers in the United States such as Chicago, Philadelphia, Pa., and Dallas.
The organization fronted the cocaine loads to distributors and, after the sale and distribution of the drugs, awaited the collection of drug proceeds and resulting payments. A co-conspirator based in Chicago distributed the cocaine and collected the proceeds, while co-conspirators in Dallas and Chicago collected, stored and prepared the drug proceeds for transportation to Laredo and Eagle Pass and then to into Mexico.
During the course of the investigation, a total of approximately $21 million was seized from various tractor trailer drivers, other couriers and stash homes in the Texas and Illinois which was destined to be transported into Mexico for delivery to the Zeta drug trafficking organization.
Montes was identified as a co-conspirator who recruited truck drivers to transport bulk cash drug proceeds for the Organization and coordinated the cash deliveries from the Chicago area to Laredo totaling approximately $6 million. Gonzales was identified as a facilitator who assisted his brother-in-law and co-defendant Nelson Casarez at a Laredo truck yard where bulk cash was delivered by truck drivers. Gonzales assisted Casarez in receiving the money in Laredo and safekeeping it until other co-conspirators were sent to pick it up and transport it to Nuevo Laredo, Mexico.
These sentencings mark the sixth and seventh defendants to be convicted and sentenced in Laredo relating to this indictment.
Other co-defendants who have entered pleas of guilty to the money laundering conspiracy and have been sentenced include Casarez, 35, Josue Alejandro Salinas, 22, Miguel Santos, 42, all of Laredo; David Villarreal, 40, a Mexican National; and Jose Vasquez, 44, a Honduran National.
Judge Marmolejo sentenced Vasquez, Villarreal and Salinas to respective terms of 87, 97 and 84 months in September 2012. The next month, Casarez received a sentence of 108 months and was assessed a $5,000 fine, while Santos was ordered to serve a 72-month term of imprisonment. Final orders of forfeiture were also entered against all men ranging from nearly $1.5 million to $4 million.
The case was investigated by agents of the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation and prosecuted by Assistant United States Attorney Mary Lou Castillo.
Jury Convicts Remaining Defendants for Area Armed Bank RobberiesRead the Press Release
HOUSTON – The two remaining defendants standing trial for their involvement in the armed robbery of several Houston-area banks have been convicted on all counts as charged, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen Morris. Early this afternoon, the federal jury convicted Larry Smith, 37, and Raymond Tierra Johnson, 32, each of one count of conspiracy as well as seven and two counts of bank robbery, respectively, after five days of trial and less than two hours of deliberations. Both were also convicted of using a firearm during and in furtherance of a bank robbery.
“Let these guilty verdicts send a strong message,” said Morris. “The old fashioned crime of bank robbery is one that doesn’t pay. The FBI will continue to work alongside our local law enforcement partners in the FBI Bank Robbery Task Force to ensure violent criminals are brought to justice.”
A total of 14 defendants were charged with their respective involvements in a series of armed bank robberies of Houston area banks including the robbery of the Pearland Chase branch bank on Dec. 31, 2010. Jeremy Benton, 22, was charged by information and later pleaded guilty, while Smith, Johnson and 11 others were charged in a superceding indictment returned July 6, 2011. Glenn Bonner, 41, pleaded guilty on the first day of trial last week. Co-defendants Gregory Wayne Ferguson, 20, Arlington Davis Wilkes aka AD, 22, Carl Ray Turner Jr. aka CT, 26, Edward Johnson, 28.,John Berley Scott aka Fresh, 31, Derrick Lashon Paley aka Crybaby, 34, Michael Maurice Wilson Jr. aka Blue/Mikey Poo, 26, Roderick Marshall Beagle, 40, Michael Dushon Duncan aka Mikey, 21, and Kelvin Dewayne Thomas aka Little Kevin, 22, each had previously entered guilty pleas.
Smith was convicted today of committing bank robbery of the Wells Fargo branches on 10978 Grant Road and 13150 Louetta on Aug. 23, 2010, and Nov. 2, 2010, respectively, Wells Fargo locations at 14001 Memorial and 12859 Kimberly Lane in Houston, both on Oct. 7, 2010, the Comerica Bank on Sept. 13, 2010, and the Citibank at 14104 NW Freeway. The jury found he used a firearm in the offenses on Sept. 14 and Nov. 2, 2010. Both defendants were convicted of robbing the Chase Bank at 24230 Northwest Freeway in Cypress and for using a firearm in the offense. Johnson was convicted of bank robbery for the Dec. 31, 2010, robbery of the Chase Bank at 1915 North Main in Pearland and for using a firearms in the commission of that crime.
The conspiracy involved “casing” banks for robberies and the selection of banks that did not have security guards or bullet resistant bandit barriers Evidence at trial indicated the conspirators used lookouts during robberies and used stolen or “hot” cars as get-a-way vehicles to commit the offenses. The conspirators recruited others to assist them to rob the banks in exchange for a share of the proceeds taken.
Evidence and testimony revealed most bank robberies were effected through the use of demand notes that Smith had written and through the brandishing and firing of firearms during the course of the robbery to ensure compliance with their demands.
Testimony revealed some of the violence witnessed by those in the banks and the threats made to gain compliance. One witness described the event as a life changing experience.
For the conviction of conspiracy to commit bank robbery, both face a maximum punishment of five years imprisonment and/or a $250,000 fine. Each conviction of bank robbery also carries a maximum punishment of 20 years incarceration (or 25 years if firearms displayed). Discharging a firearm during and in furtherance of a bank robbery carries a mandatory punishment of 10 years on each conviction which must be served consecutive to any sentences imposed for the underlying bank robbery convictions.
The charges against these defendants are the result of a federal investigation conducted by the FBI with the substantial assistance and cooperation of the Houston Police Department, Harris County Sheriff’s Office, Harris County Precinct 4 Constable’s Office, Harris County District Attorney’s Office, Crimestoppers, Friendswood Police Department, Pearland Police Department and the Brazoria County District Attorney’s Office. The United States Attorney wishes to recognizes each of these investigative agencies as well as the security departments of Wells Fargo and JP Morgan Chase for their outstanding efforts.
Assistant U.S. Attorneys Suzanne Elmilady and Kebharu Smith are prosecuting the case.
Husband and Wife Sentenced for Various Tax CrimesRead the Press Release
HOUSTON - Married couple James R. Dixon and Sharon C. Dixon have each been ordered to prison for committing separate tax crimes in two separately-filed, but related cases, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation. Both entered guilty pleas on their respective cases in October 2012.
Today, U.S. District Judge Vanessa Gilmore sentenced James Dixon to a term of 33 months in federal prison to be followed by three years of supervised release. He further ordered him to pay $1,397,511.30 in restitution.
U.S. District Judge Kenneth M. Hoyt sentenced Sharon Dixon on Feb, 27, 2013, to a term of 11 months in prison and ordered her to pay restitution in the amount of $183,801.39. Sharon Dixon pleaded guilty to two counts of willfully failing to file her U.S. Individual Income Tax Returns for 2007 and 2008.
James Dixon was convicted of one count of tax evasion, admitting that in an attempt to evade his and his spouse's full income tax liability for 2006, he willfully failed to report additional income of approximately $255,966.36 on his joint 2006 U.S. Individual Income Tax Return. Dixon admitted the additional income tax owed for his joint 2006 income tax year is approximately $59,379.05. For sentencing purposes, he stipulated the total relevant conduct, tax loss in the case, exceeds $890,000.
According to the plea agreement, the $890,000 includes the individual income taxes Dixon and his wife owe on their 2005 through 2008 income tax years plus more than $700,000 of unpaid employment taxes of a company for which James Dixon had the duty to pay over to the IRS. Dixon further agreed to pay restitution to the IRS of more than $1.3 million.
Previously released on bond, James Dixon was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Sharon Dixon 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 matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Armed Bank Robbery Lands Another in Federal PrisonRead the Press Release
HOUSTON – A second person charged in the armed robbery of two local banks has been ordered to prison for more than 16 years, United States Attorney Kenneth Magidson announced today. Barry Ogilvie, 37, of Houston, pleaded guilty March 28, 2011, to two counts of aiding and abetting aggravated bank robbery and one count of discharging a firearm during a crime of violence.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Ogilvie two 78-month sentences for the bank robbery charges to run concurrent. He was further ordered to serve 10 years for the firearm conviction which must be served consecutively for a total sentence of 198 months. Ogilvie will be required to serve a term of three years of supervised release following completion of the prison term.
On Sept. 9, 2010, Ogilvie and Andrea Steptore, 30, of Houston, both armed with firearms, 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.
Wheeler, Steptore and Ellis have all also pleaded guilty to aiding and abetting aggravated bank robbery. Ellis was sentenced last month to 97 months in federal prison. Wheeler and Steptore are set for sentencing April 15, 2013. At that time, they face up to 25 years in prison and a possible $250,000 fine. Steptore, who also pleaded guilty to brandishing a firearm during a crime of violence, also faces a minimum seven-year-term of imprisonment which must be served consecutively to the other sentences imposed.
The case was investigated by FBI Houston Bank Robbery Task Force. Assistant United States Attorney Jennie Basile is prosecuting the case.
Local Doctor Gets Max for Possession of Child PornographyRead the Press Release
HOUSTON - Bernard Albina, 73, of Houston, has been handed the statutory maximum federal sentence of 10 years following his conviction for possessing child pornography, United States Attorney Kenneth Magidson announced today. Albina entered a guilty plea Tuesday, Nov. 27, 2012.
Today, U.S. District Judge Lee Rosenthal took into consideration the plea agreement between the parties and handed Albina a total of 120 months in federal prison and further ordered him to pay a $75,000 fine. At the hearing, two mothers of Albina’s victims spoke and described the harm Albina caused. Judge Rosenthal then ordered Albina to serve the rest of his life on supervised release following completion of his prison term, noting she believed he still has, as the mother of one of the victims stated, the demons which caused this behavior and suffers from a disconnect when it comes to his criminal behavior. Albina will also be ordered to register as a sex offender.
Arrested on the federal charges on Jan. 23, 2012, Albina was ordered into custody after the court heard evidence regarding the investigation and charges. At that time, the judge found Albina to be a danger to the community and that due to his considerable assets and possible links to Lebanon, he was a flight risk.
Albina previously admitted that from at least January 2003 he inappropriately associated with several young boys. During this time, he admitted he photographed two of those boys and the pictures displayed their genitals in a lascivious exhibition.
In July 2009, search warrants were executed at several locations associated with Albina which resulted in the discovery of numerous items including CDs, DVDs, video tapes and printed images found to include child pornography. Today, Albina admitted to possessing a total of 10 videos and 326 images containing child pornography.
Albina will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The charges against Albina are the result of an investigation conducted by the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorney Sherri L. Zack.
Florida Truck Driver Convicted in Alien Transportation ConspiracyRead the Press Release
LAREDO, Texas – Jesus Lopez Cabrera, of Haileah, Fla., has been convicted by a federal jury verdict after a three-day trial of conspiracy to transport and the transportation of undocumented persons, United States Attorney Kenneth Magidson announced today. The verdict was announced earlier today in U.S. District Judge Diana Saldaña’s court after less than two hours of deliberation.
During the trial, the jury heard testimony that Jesus Lopez Cabrera worked for Tiger Express Services Inc. This was a small trucking company with five to six drivers that moved sodas, crates, tomatoes, tiles and crates as well as human beings like cargo. Drivers were caught with undocumented persons in the back of their vehicles on July 27, 2012; Oct. 11, 2012; Oct. 27, 2012; and Nov. 9, 2012, at various checkpoints in South Texas. The tractors and trailers used in these events were cross-referenced to other drivers in the company.
In particular, Cabrera, was caught at the I-35 Border Patrol Checkpoint north of Laredo with 14 undocumented persons in the back of his tractor trailer. These persons were packed like cargo in a small space between wooden crates with little room to move. This tractor trailer had a Tiger Express Services Inc. logo on it and was registered to Cabrera.
Evidence also proved Cabrera purchased a trailer in McAllen on Oct. 3, 2012.This trailer was used to haul 13undocumented persons on Nov. 9, 2012. These persons were packed in small spaces amongst tomatoes. Two of these persons had also received a ride in the back of a Tiger Express trailer driven on Oct. 27, 2012.
During the trial, the jury heard from the people transported by Cabrera and others. They described the same pattern of operation for this organization. They were crossed into the United States, housed for a couple of days and then taken to the brush along an isolated road near McAllen and were told to wait for a trailer. When a trailer arrived, they ran into the back. They never saw the drivers.
Cabrera is expected to be sentenced in the late Spring of 2013, at which time he will face up to 10 years imprisonment and a maximum fine of $250,000. Garcia has been in custody since March 18, 2012.
The matter was investigated by Homeland Security Investigations in conjunction with the U.S. Border Patrol. Assistant United States Attorneys Elizabeth R. Rabe and James Bruce Hepburn prosecuted the case.
DME Owner Arrested in 21-Count Health Care Fraud IndictmentRead the Press Release
HOUSTON – Andrea Michelle Tellison, 46, has been arrested following the return of a 21-count indictment charging her with health care fraud and aggravated identity theft, United States Attorney Kenneth Magidson announced today.
The indictment was returned under seal Wednesday, March 20, 2013, and unsealed today upon her arrest. She made her initial appearance this morning before U.S. Magistrate Judge Mary Milloy, at which time she was released on bond.
Tellison, of Houston, is one of the owners of Texas Durable Medical Company, located in Houston, according to the indictment. She is alleged to have submitted false and fraudulent claims to Medicare and Medicaid for durable medical equipment (DME), including enteral nutrition feeding kits that were not provided to Medicare beneficiaries, not ordered by physicians, and not medically necessary. Enteral nutrition is provided by feeding tubes and accessories rather than consumed orally.
According to the indictment, Tellison also falsely signed certain Medicare forms stating there was documentation in patient medical records detailing the need for enteral nutrition when there was not. The indictment also alleges Tellison delivered formula to Medicare beneficiaries that expressly stated “not for tube feeding.” Additionally, Tellison allegedly failed to purchase sufficient inventory to deliver all the enteral nutrition and supplies she billed to Medicare and Medicaid. The indictment indicates that between March 29, 2008, and Nov. 30, 2009, Tellison submitted approximately $1,480,511.31 worth of claims for enteral nutrition and supplies and received approximately $786,222.11 as payment for those claims.
If convicted, she faces up to 10 years in prison and a possible $250,000 fine for each conviction of health care fraud. Aggravated identity theft further carries a mandatory two-year prison term that must be served consecutively to any sentence for the underlying offense and up to a $250,000 fine, upon conviction.
The investigation into Tellison was the result of a joint investigation conducted by agents from the FBI, Railroad Retirement Board - Office of the Inspector General, Department of Health and Human Service – Office of Inspector General and the Texas Attorney General Office – Medicare Fraud Control Unit. Assistant United States Attorney Julie Redlinger is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Another Convicted, Another Charged in Hostage Taking/Harboring CaseRead the Press Release
HOUSTON – Mexican national Marco Garcia-Perez, 38, has been convicted of conspiracy to transport illegal aliens, United States Attorney Kenneth Magidson announced today. Garcia-Perez was among seven charged in an ongoing conspiracy to harbor and hold smuggled aliens for ransom payments.
A third superseding indictment adding an eighth individual, Mexican National Emmanuel Rivera-Abarca, 19, was returned Feb. 28, 2013. He is expected to appear before a U.S. magistrate judge in the near future.
Charges in the case stem from an investigation that began in mid-August 2012, after family members and friends of two aliens who had been smuggled into the country contacted law enforcement to report receiving extortion calls demanding money for the aliens’ release. Family members wired money which was picked up at various locations in Harris County.
Agents later executed a search warrant at a residence on Amblewood Drive in Houston and encountered 26 illegal aliens, at least two of whom were juveniles, allegedly being held hostage inside the residence. According to the victim aliens, upon arrival in Houston they were forced to undress and informed they had been “sold” and would not be released until family members made payments to the men holding them hostage. While held hostage at the residence, the indictment indicated victims reported they were held in their underwear, in locked rooms with boarded up windows and in deplorable conditions. The victims also indicated they were guarded by men constantly armed with a handgun. Victims reported they were not allowed to leave the residence until payment was sent for their release. Some victims said they were threatened with harm or death if payment was not received.
That day, agents also encountered and arrested Mexican nationals Virgilio De La Torre-Santana, 27, Adauto Aguilar-Lara, 34, and Job Solis-Benito, 23. Subsequently, three more defendants were charged in the case - Samuel Castro-Flores, 41, from Mexico, Joshua Andrew Carbajal, 25, from Alice, and Garcia-Perez. The indictment remains under seal as to those charged but not as yet in custody.
De La Torre and Aguilar have entered guilty pleas in connection with their role in the ongoing conspiracy.
Garcia-Perez is set for sentencing on Sept. 20, 2013, at which time he faces up to 10 years imprisonment and a possible $250,000 fine. Sentencing for both De La Torre-Santana and Aguilar-Lara are also set for sentencing on Sept. 20, 2013. At that time, De La Torre faces up to life in prison, while Aguilar-Lara faces up to 10 years imprisonment. Both also face a possible $250,000 fine. Charges remain pending against all the remaining defendants. A final pretrial conference and jury selection is scheduled for June 10, 2013. They are presumed innocent unless convicted through due process of law.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations in Houston, Washington D.C., and Virginia and police departments in Prince William County and Houston. Assistant United States Attorney Casey N. MacDonald is prosecuting the case.
Former HSCO Deputy Lands in Federal Prison for Scheme to Steal NarcoticsRead the Press Release
HOUSTON - Richard Bryan Nutt, 45, a former Harris County Sheriff’s Office (HSCO) deputy, has been sentenced to federal prison for conspiring with others to use his position as a law enforcement officer to steal drug loads from dealers and split the proceeds with others, United States Attorney Kenneth Magidson announced today. Nutt pleaded guilty Feb. 7, 2011.
Today, United States District Judge Vanessa Gilmore sentenced him to 46 months in prison to be followed by a one-year-term of supervised release. At sentencing, Judge Gilmore took into consideration that it was his first offense and that Nutt has more than 20 years in law enforcement and military service. At the hearing, Nutt apologized to the court and to his family.
In late 2010, the Houston Police Department (HPD) obtained information that members of law enforcement were robbing shipments of narcotics in Houston and subsequently initiated a sting operation. On Dec. 15, 2010, then Deputy Nutt met with his co-conspirators, at which time they learned a vehicle containing narcotics or narcotics proceeds would be driving through Houston. They agreed to stop the vehicle, a Chrysler Aspen SUV, with the assistance of Deputy Nutt. He was to conduct a traffic stop of the SUV, which was reportedly to be driven by a drug dealer from Mexico, and pretend to arrest the driver then release him while the co-defendants took the vehicle containing the drugs. The conspirators would then split the money from the sale of the drugs.
Later that day, Nutt, in full uniform and driving a silver pickup equipped with red and blue emergency lights, spotted and followed the Chrysler Aspen SUV as it drove into a parking lot of a Houston area shopping center. Once parked, the SUV driver, actually an undercover HPD officer, abandoned the SUV. A package thought to contain cocaine was then transferred from the SUV to a blue Nissan Altima. Nutt entered the vehicle as it drove off the lot and it was soon stopped by HPD officers. The package, which actually contained fake cocaine, was found and removed from under the passenger seat where Nutt sat. Nutt and his co-defendants were arrested by law enforcement officers and subsequently charged federally.
Others involved in the scheme have all pleaded guilty and also been sentenced to prison.
Nutt, previously released on bond, was allowed to continue on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Internal Affairs and Narcotics Divisions of the Houston Police Department with the assistance of the FBI. The case was prosecuted by Assistant United States Attorney James McAlister.
Several Plead Guilty in Federal Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – The last three area men arrested in January for various drug trafficking and money laundering conspiracies have entered guilty pleas, United States Attorney Kenneth Magidson announced today. Manuel Pena aka “Super,” 47, Ignacio Pena aka “Nacho,” 44, and Jose Fidel Guajardo aka “Garfield,” 40, all of Corpus Christi, appeared before Senior United States District Judge Janis Graham Jack this morning and pleaded guilty.
Others named in the indictment, including Raul Leal Martinez aka “Indio” or “Wahoo,” 36, Rocky Bazaldua aka “Rock,” 31, David Pete Dominguez aka “Buda,” 30, and Julieann Gutierrez, 24, all also of Corpus Christi, have already pleaded guilty to their roles in the conspiracies.
The indictment charged all of the defendants with conspiring from June 1, 2008, to Jan. 8, 2013, to possess with intent to distribute more than 50 grams of methamphetamine. The investigation revealed that Manuel Pena, a member of the Texas Syndicate prison gang, orchestrated various drug deals in the Corpus Christi area. Evidence proved that in May 2011 Manuel Pena made deals to provide cocaine and methamphetamine to Bazaldua and Dominguez. He admitted he acquired cocaine and agreed to sell methamphetamine to Guajardo. Pena also received methamphetamine from Martinez. In April 2011, Gutierrez transported nearly 500 grams of pure methamphetamine to San Antonio for Manuel Pena, with whom she was living. Ignacio Pena, Manuel Pena’s brother, helped receive and deliver various amounts of cocaine and methamphetamine to various drug dealers in Corpus Christi.
Martinez and Guajardo also pleaded guilty to conspiring to launder the proceeds of their drug sales through various financial transactions. As part of their plea agreements, Manuel Pena, Martinez and Guajardo also agreed to forfeit their interests in various properties around Corpus Christi.
All defendants are set for sentencing in May 2013. With the exception of Martinez and Gutierrez, who were permitted to remain on bond, the remaining defendants will remain in custody pending the sentencing hearing. All face a minimum of 10 years and up to life in federal prison and a possible $10 million fine. Martinez and Guajardo also face up to 20 years imprisonment for the money laundering conviction.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, Texas Department of Public Safety, the Nueces and Kleberg County Sheriff’s Offices, and the Corpus Christi, Aransas Pass and Portland Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Hess.
McAllen Urologist and Wife Charged in Heath Care Fraud Scheme and Conspiracy to Violate Iranian SanctionsRead the Press Release
HOUSTON – A federal grand jury has returned a four-count, superseding indictment against urologist Hossein Lahiji M.D. and his wife, attorney Najmeh Vahid Lahiji, both of McAllen and San Antonio, United States Attorney Kenneth Magidson announced today. The second superseding Indictment, returned late yesterday, charges the couple with conspiracy to commit health care fraud, health care fraud and for conspiring to violate Iranian sanctions.
The Lahijis are set to appear in Houston tomorrow morning at 9:45 before U.S. District Judge Mary Milloy.
This indictment alleges the Lahijis conspired to violate Iranian Sanctions by transferring approximately $1.1 million to Iran. The Lahijis allegedly utilized an unlicensed money remitting business called the Espadana Exchange to avoid the United States banking regulations and to allegedly make it appear they were not violating the United States embargo with Iran. The indictment alleges the defendants sent some of the monies representing profits of their alleged illegal health care fraud scheme to Iran for the purpose of making an investment on behalf of Hossein Lahiji and Najmeh Vahid Lahiji in real estate rental property in Iran, all in violation of the Iranian sanctions.
“The Internal Revenue Service (IRS) will tenaciously pursue individuals who violate international emergency economic powers statutes,” said IRS-Criminal Investigation (CI) Special Agent in Charge Lucy Cruz. “IRS-CI's unique skill set is to unravel the often concealed complex networks used to disguise international financial crimes.”
The health care fraud scheme alleged in this indictment accuses Hossein and Najmeh Lahiji of conspiring to defraud multiple health care benefit programs by submitting false and fraudulent claims in connection with the use of unlicensed and unqualified medical personal and for billing for medical services not rendered. The scheme allegedly ran from January 2003 through Feb. 24, 2012, and involved Medicare, Medicaid, Aetna, Blue Cross Blue Shield, Humana and United Healthcare. The indictment further alleges the Lahijis submitted claims to these health care benefit programs for urology services allegedly performed by Hossein Lahiji M.D. when, in fact, he was traveling outside Texas and outside the United States. The individuals, who were only licensed as medical assistants, were the ones actually performing these “urology services” without any supervision from any physician or other qualified, licensed personal in violation of protocols established by Medicare, Medicaid, private health insurance and the state of Texas.
The scheme also allegedly involved specific days in which Hossein Lahiji claimed to treat between 65 to 117 patients per day during the office hours of 7:00 a.m. to 6:00 p.m. The indictment further alleges false and fraudulent representations including that Hossein Lahiji had conducted a “consultation” for another physician. In reality, he allegedly performed routine medical services for a patient of his own, a practice known as “upcoding. Lahiji allegedly indicated that the patient’s medical situation had necessitated a comprehensive physical examination and the taking of a comprehensive medical history. However, The patient’s situation had not required such an examination or history-taking, and Hossein Lahiji had not performed such services, according to the indictment.
The Indictment also contains two substantive counts of health care fraud occurring on July 1, 2009 and July 28, 2009.
Hossein Lahiji M.D. is a physician investor in the physician-owned hospital, Doctor’s Hospital at Renassiance, in Edinburg.
The Lahijis each face a sentence of up to 10 years in prison and a maximum $250,000 fine if convicted of the health care offenses as well as a maximum of 20 years in prison and a possible $1 million fine upon conviction of conspiracy to violate Iranian sanctions.
The Lahijis are currently scheduled for a jury trial in Southern District of Texas on March 25, 2013. They are also scheduled for trial in the District of Oregon on June 4, 2013, on unrelated federal charges.
The investigation leading to the charges in this case was conducted by the FBI, the Texas Attorney General’s Medicaid Fraud Control Unit and IRS-CI. Assistant United States Attorneys Carolyn Ferko and Jim McAlister are prosecuting the case.
An Indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Man Convicted of Tax EvasionRead the Press Release
HOUSTON – Eric P. Garcia has entered a plea of guilty to one count of tax evasion, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation.
Garcia admitted in the written plea agreement he willfully filed an income tax return for 2007 claiming he owed only $22,223 in income taxes. However, he knew the correct amount of income taxes he owed for the year was approximately $275,694. Garcia further acknowledged he owed additional income taxes for years 2005 through 2009 totaling $765,041. Garcia admitted he willfully claimed inflated expenses on his income tax returns in order to evade his income tax liabilities.
U.S. District Judge Nancy F. Atlas, who accepted the guilty plea, has set sentencing for May 30, 2013, at which time he faces up to five years of imprisonment and a possible $250,000 fine.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.25 Years for Conroe Woman Convicted on Multiple Child Pornography ChargesRead the Press Release
HOUSTON – Debra Jean Eyerly, 54, formerly Debra Martin-Pryce, has been ordered to prison for 25 years following her convictions for production, transportation and possession of child pornography, United States Attorney Kenneth Magidson announced today. Eyerly pleaded guilty Oct. 25, 2012, to conspiracy to produce, production, transportation and possession of child pornography.
U.S. District Judge Keith P. Ellison, who accepted the guilty pleas, sentenced Eyerly this morning to 300 months on the conspiracy and each of the three convictions of production, as well as 120 months on the transportation and possession charges. All sentences will be served concurrently for a total sentence of 300 months. Following her release from prison, she will serve the rest of her life on supervised release.
The investigation began as a result of several downloads of child pornography over the Internet by FBI officers in Tulsa, Buffalo and Detroit which were traced to a computer used by Matthew Eyerly, whom agents later located in an apartment in Conroe. Also present were Debra Martin-Pryce and a minor child. Debra Martin-Pryce eventually married Matthew Eyerly.
When asked about the minor child in the apartment, Matthew Eyerly stated there would be pictures of the child on the computer. He admitted to digital and oral contact with the genitals of the child and having taken pictures of these acts, which took place at an earlier visit in July 2006 in Conroe. At that time, Debra Eyerly had left him alone with the child in a motel room.
Agents also interviewed Debra Eyerly, who stated she had recently moved to Texas from Pennsylvania to be with Matthew Eyerly. She had admitted to taking photos of the child and sending them to Matthew Eyerly at his request. She had taken the photos at her Pennsylvania residence and sent them to Eyerly over the Internet. She also admitted to leaving the minor child alone with Matthew Eyerly in a hotel room at his request at the earlier Conroe visit.
Both consented to searches of their computers. A forensic exam subsequently revealed images of the child on both computers as well as a camera belonging to Debra Eyerly. Additional images of child pornography downloaded from the Internet and not involving the minor child were also found on both computers.
Matthew Eyerly, 36, was also sentenced to 30 years in federal prison at a hearing last month. He had previously pleaded guilty to conspiracy to produce child pornography and possession of child pornography.
Debra Eyerly has been in custody since her Oct. 28, 2011, arrest where she will remain pending transfer 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 and investigated by the FBI, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Laredo Residents Arrested for Distributing Cocaine and Marijuana in A School ZoneRead the Press Release
LAREDO, Texas – Romeo Serna Sr., 50, and Romeo Serna Jr., 26, both residents of Laredo, have been arrested for attempted distribution of cocaine base and for possession with intent to distribute marijuana in a school zone, United States Attorney Kenneth Magidson announced today along with Javier F. Peña, special agent in charge of the Drug Enforcement Administration (DEA).
The Sernas were arrested on March 7, 2013. The criminal complaint was filed this morning, at which time the Sernas made their initial appearances before United States Magistrate Judge Diana Song Quiroga. Both were remanded to custody pending a detention hearing, set for Friday, March 15, 2013, at 10:00 a.m.
“Selling drugs in or near a school is not only unlawful but could be potentially dangerous to our children as well as our communities,” said Peña. “DEA and its colleagues will continue to work hard to keep our children and communities safe.”
The criminal complaint alleges that on March 7, 2013, DEA agents set up surveillance on the Serna residence on South Bartlett Avenue in Laredo. At approximately noon, the undercover agent arrived at the location to purchase nine ounces of cocaine base (crack cocaine), at which time Serna Sr. allegedly showed the undercover agent the drugs he was planning to sell.
Shortly thereafter, DEA agents arrested the Sernas and executed a search warrant at the residence. During the search, the complaint indicates agents also discovered marijuana located on the kitchen counter, kitchen attic and in the living room. The Serna residence is located within 1,000 feet of a public middle school.
The case is being investigated by DEA with assistance from the Laredo Independent School District Police Department. Assistant U.S. Attorney Sonah Lee is prosecuting the case.
A criminal complaint is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Tax Attorney Convicted of Causing Tax Loss of More Than $2 MillionRead the Press Release
HOUSTON – Tax attorney and Certified Public Accountant (CPA) William R. Zweifel has entered a plea to two counts of willfully aiding and assisting in the preparation and presentation of U.S. Individual Income Tax Returns that were false or fraudulent, United States Attorney Kenneth Magidson announced today along with Special Agent in Charge Lucy Cruz of Internal Revenue Service – Criminal Investigation (IRS-CI)
According to the plea agreement filed in the record of the case, Zweifel acknowledged he was a tax attorney and CPA and that he prepared false income tax returns for some taxpayers that claimed large tax refunds to which the taxpayers were not entitled. The method he used to create a false income tax refund was to offset a taxpayer’s income with an alleged loss from either a partnership in which the taxpayer had no partnership interest or from an S corporation which reported no loss for the taxpayer to claim. Zweifel stipulated in the plea agreement that the tax losses to the United States from the false claims on the two income tax returns listed in the criminal information were approximately $61,000 and approximately $42,000, respectively. Zweifel further admitted that for purposes of determining relevant conduct under the U.S. Sentencing Guidelines, the tax loss to the United States in this case is approximately $2.2 million.
“One of the IRS’s main objectives is to ensure that all tax practitioners, tax preparers and others who practice in the tax law profession adhere to professional standards and follow the law,” said Cruz. “CI’s efforts to deter refund fraud are critical to overall tax compliance. Our special agents play a valuable role in protecting revenue by identifying, investigating and recommending prosecution of abusive return preparers.”
Zweifel also has agreed to pay restitution to the United States of $250,000 and to never again aid or assist in the preparing or presenting of tax returns for any taxpayer other than himself and any entity he owns. He further agreed not to oppose any civil injunction action brought by the United States seeking to enjoin him from preparing income tax returns for anyone but himself and any entity he owns.
The court has set sentencing for May 23, 2013. The maximum penalty Zweifel faces on each count of willfully preparing a false income tax return is imprisonment of three years and a fine of $250,000. He was permitted to remain on bond pending that hearing.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Missouri City Man Pays Price for Illegally Possessing Bald EagleRead the Press Release
CORPUS CHRISTI, Texas - Sam Mathew, 53, of Missouri City, has been ordered to pay the maximum fine allowed by law for illegally possessing a bald eagle, United States Attorney Kenneth Magidson announced today.
Mathew was indicted in May 2012 for one count of violating The Migratory Bird Treaty Act (MBTA). He was later convicted by a Victoria federal jury in on Dec. 18, 2012, following two days of trial and approximately an hour of deliberations.
Today, U.S. Magistrate Judge Brian L. Owsley, who presided over the trial, ordered Mathew to pay a $15,000 fine, the maximum allowed by law, and to serve three years of probation, during which time he must complete 150 hours of community service and anger management classes.
During trial, the government presented evidence and testimony that indicated Mathew intended to catch a juvenile bald eagle for the purpose of training it in falconry. Evidence indicated there was an active bald eagle nest located on Mathew’s property and he had already researched how to capture it.
Mathew testified in his defense and claimed the bird was out of its nest and on a tree limb and had instructed two ranch hands to remove it. However, testimony indicated the bird was actually still in its nest when they were about to capture it. The eagle apparently got scared and fell out of the tree at that time and Mathew and one of the ranch hands caught it. The MBTA does allow the possession of nongame birds, but only if they are injured, sick or orphaned and if they are immediately transported to be rehabilitated.
U.S. Fish and Wildlife Service (FWS) officials learned of the eagle and that the nest housing it had apparently been disturbed and went to the residence. Upon arrival, they noticed there were fresh tire tracks around the tree and several broken branches as well as a set of tree climbing gear with ropes.
Mathew claimed he thought the bird was injured and was rescuing it to take it to a rehabilitator. The jury disagreed and found him guilty as charged.
The MBTA provides protection for migratory birds. The MBTA prohibits to pursue, hunt, take, capture or kill, attempt to take, capture or kill, possess, offer for sale, sell, offer to purchase, purchase, deliver for shipment, ship, cause to be shipped, deliver for transportation, transport, cause to be transported, carry, or cause to be carried by any means whatever, receive for shipment, transportation or carriage, or export, at any time, or in any manner, any migratory bird, included in the terms of this Convention . . . for the protection of migratory birds . . . or any par, nest, or egg of any such bird. The bald eagle is a non-game migratory bird as defined in Title 50, Code of Federal Regulations, Part 10.13.
The case was investigated by agents from the U.S. Fish and Wildlife Service and Texas Parks and Wildlife Department. The case was prosecuted by Assistant United States Attorneys Hugo R. Martinez and Patti Hubert Booth.
Laredo Police Officer Enters Guilty Plea to Deprivation of Civil RightsRead the Press Release
LAREDO, Texas – Frank Carter, 43, a former officer Laredo Police Department (LPD), has entered a guilty plea today in federal court to violating the civil rights of an arrestee, United States Attorney Kenneth Magidson announced today along with Assistant Attorney General for the Civil Rights Division Thomas E. Perez.
“Mr. Carter has admitted that he used unjustified and unlawful force against a handcuffed arrestee,” said Perez. “The Justice Department will continue to prosecute law enforcement officers who violate the constitutional rights of individuals in their custody.”
Carter entered the guilty plea before U.S. District Judge Diana Saldana today. Carter admitted that on May 26, 2012, while using his authority as a LPD officer, he struck a male victim who was handcuffed and detained in the backseat of Carter’s patrol car. Carter admitted he struck the victim several times.
According to information presented in court, rear facing dash camera audio and video recordings revealed Carter had yelled obscenities at the victim while he punched the victim in the head and body. Carter also repeatedly slammed the victim’s face into the back of the seat. The victim remained handcuffed during the entire incident and never resisted or attempted to harm Carter.
Judge Saldana has ordered a presentence report to be due April 11, 2013, at which time she will set sentencing date and decide whether to accept the guilty plea Carter entered today. If she accepts the plea, Carter will face a maximum of 10 years in prison. He was permitted to remain on bond pending that hearing.This case was investigated by the FBI and Texas Rangers. Assistant United States Attorney Ruben R. Perez and Civil Rights Division Trial Attorneys Ryan Murguia and Christopher Lomax are prosecuting the case.
More Charged in Panama Unit CaseRead the Press Release
McALLEN, Texas – A federal grand jury has handed down a superseding indictment in the case involving the former task force dubbed the “Panama Unit,” United States Attorney Kenneth Magidson announced today.
The superceding indictment, returned just moments ago, charges several additional members of the former task force as well as three other individuals, for various drug and theft charges.
In January 2013, a federal grand jury charged Jonathan Christian Trevino, 28, Alexis Rigoberto Espinoza, 29, Fabian Rodriguez, 28, and Gerardo Mendoza-Duran, 30, with conspiring to possess with the intent to distribute more than five kilograms of cocaine.
Today, former Hidalgo County Sheriff’s Deputies Salvador Joel Arguello, 34, Claudio Alberto Mata, 34, and Eric Michael Alcantar, 29, were charged with conspiring to possess with the intent to distribute more than five kilograms of cocaine, more than 1000 kilograms of marijuana and more than 500 grams of methamphetamine. The trio was also charged in several substantive counts of possession with the intent to distribute more than multi-kilogram quantities of cocaine.
The superceding indictment also includes one count of theft of government property against Trevino, Rodriguez and Arguello.
Fernando Guerra Sr., 57, Fernando Guerra Jr., 24, and Alvaro Gilberto DeHoyos, 25, were also charged in the indictment today with conspiracy to possess with intent to distribute, and possession with intent to distribute more than five kilograms of cocaine.
All the defendants face a minimum of 10 years and a maximum of life in prison, along with a potential fine up to $10 million.
The case is being investigated by the FBI, Immigration and Customs Enforcement – Office of Professional Responsibility, Drug Enforcement Administration, Homeland Security Investigations, the Texas Rangers and Department of Justice – Office of the Inspector General. Assistant United States Attorneys Anibal Alanis and James Sturgis are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
Mexican National Sentenced in Child Solicitation CaseRead the Press Release
LAREDO, Texas– Juan Antonio Castillo-Mendoza, 46, a resident of Nuevo Laredo, Tamaulipas, Mexico, has been sentenced to 48 months for traveling into the United States with intent to engage in illicit sexual conduct, United States Attorney Kenneth Magidson announced today along with Vincent Iglio, acting special agent in charge of Homeland Security Investigations (HSI). Castillo-Mendoza pleaded guilty to the charge on Oct. 25, 2012.
“Protecting America's children from sexual predators is one of the most important public safety roles we have at HSI,” said Iglio. “Today’s sentencing demonstrates that HSI and our law enforcement partners will use every tool at our disposal to stop these predators in their tracks, and protect their innocent victims.”
Between July and August 2012, Castillo-Mendoza initiated contact and engaged in numerous online chats with an undercover investigator who was posing as a 14-year-old girl. During their first chat, Castillo-Mendoza was informed several times that the girl he had initiated contact with was 14 years old. The online conversations soon turned personal and Castillo-Mendoza told the undercover investigator he wanted her to become his girlfriend, asked her to keep their relationship a secret and tried to entice her to travel to Nuevo Laredo so that they could meet. He also steered the online chats towards sex and repeatedly asked the undercover investigator about sex.
After a month of online chatting, Castillo-Mendoza made plans to visit the girl and have sex with her while her mother was away at work. Castillo-Mendoza arrived at the Laredo apartment given to him by the undercover investigator and he was subsequently arrested.
The case was investigated by HSI and the Webb County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Sonah Lee.
Five Plead Guilty to Federal Firearms ChargesRead the Press Release
LAREDO, Texas – Five people have entered guilty pleas for making false statements in connection with firearms purchases from local gun stores, United States Attorney Kenneth Magidson announced today.
According to testimony presented at today’s hearing, Gloria Esther Almanza, 39, Calixto Javier Cardenas, 23, Carlos Picazio, 30, and Alejandro Rivera-Ruiz, 48, all residents of Laredo, each purchased semi-automatic assault rifles for other persons who would smuggle them into Mexico. They all pleaded guilty to making false statements on Bureau of Alcohol, Tobacco, Firearms and Explosives Forms 4473, commonly known as straw purchasing. Mexican national Oswaldo Rafael Borrego-Ramos, aka “Baldo,” 31, of Nuevo Laredo, Tamaulipas, Mexico, admitted recruiting the defendants directly or through others. He pleaded guilty to conspiracy to make false statements in acquiring firearms.
The indictment alleges that the conspiracy spanned a little over one year, beginning in October 2010. Over the course of 15 months the defendants acquired at least 23 pistols and semi-automatic assault rifles. The federal investigation involved historical purchases made by these defendants and others from various stores in Laredo.
U.S. District Judge Marina Garcia-Marmolejo, who accepted the guilty pleas today, has set sentencing for June 5, 2013, at which time they face a maximum prison sentence of five years and a possible $250,000 fine. Borrego-Ramos and Rivera-Ruiz are presently serving federal prison sentences of 78 months and 52 months, respectively, for smuggling ammunition and firearm magazines into Mexico. They and Picazio will remain in federal custody pending sentencing in this case, while Almanza and Cardenas were permitted to remain on bond.
Picazio was also named in another indictment along with Robert Jacaman Sr. and Veronica Jacaman in an ammunition smuggling charge involving 9,500 rounds. Picazio is innocent of that charge until proven guilty as are the Jacamans.
The investigation was conducted by the ATF with the cooperation of United States Border Patrol and Homeland Security Investigations. Assistant United States Attorney Homero Ramirez is prosecuting the case.
Dallas Man Convicted and Fined for Killing Whooping CraneRead the Press Release
CORPUS CHRISTI, Texas – Worthey D. Wiles, 42, of Dallas, has entered a plea of guilty and was sentenced for killing a whooping crane, United States Attorney Kenneth Magidson announced today along with Nick Chavez, special agent in charge of U.S. Fish and Wildlife Service (FWS).
On Jan. 12, 2013, Wiles was a guest hunter at the St. Charles Bay Hunting Club in Rockport which is located inside the designated critical habitat for whooping cranes. While hunting in the marsh adjacent to San Jose Island, Wiles shot and killed a juvenile whooping crane. After contacting Texas Parks and Wildlife (TPW), Wiles told state game wardens he thought the whooping crane was a sandhill crane. Wardens then contacted FWS who located the bird and verified it was a whooping crane.
“The whooping crane is one of the most beautiful and highly valued species of America’s wildlife heritage,” said Chavez. “FWS is committed to protecting this extraordinary bird so that future generations of Americans are able to marvel at its grace and beauty.”
Whooping cranes are one of the rarest birds in the world with a total population of approximately 437 cranes in the wild and 599 overall. The juvenile whooper killed by Wiles is believed to have been one of only 34 juveniles that migrated 2,500 miles from Canada during the fall to Port Aransas. The whooping crane population that winters in Texas is the only self-sustaining wild population of whooping cranes in the world. This case is only the fifth known shooting death of a whooping crane since 1968.
Today, Wiles appeared before United States Magistrate Judge B. Janice Ellington and entered a plea of guilty to one count of violating the Migratory Bird Treaty Act, which provides protection for Migratory Birds. As a result, he was ordered to pay a $5,000 fine and make a $10,000 community service payment to the non-profit organization Friends of Aransas and Matagorda Island National Wildlife Refuges. He will also serve a one-year-term of probation for his conviction.
The case was investigated by FWS and TPW. Assistant U.S. Attorney Hugo R. Martinez prosecuted the case.
Victoria Man Sent to Prison on Firearms ConvictionRead the Press Release
VICTORIA, Texas – Corey Hammon Green, 29, of Victoria, has been sentenced to federal prison for being a convicted felon in possession of a firearm, United States Attorney Kenneth Magidson announced today. Green was convicted at trial on Oct. 24, 2012.
Senior U.S. District Judge John D. Rainey, who presided over the trial, sentenced Green yesterday afternoon. Green was handed a sentence of 120 months, the maximum sentenced allowed under that charge. Green will further be required to serve a three-year-term of supervised release following completion of his prison term.
Evidence at trial proved that at the time of his arrest, Green was facilitating a prostitution ring. In late 2011, Green had taken one of his victims to a local Victoria hotel to what he thought was for prostitution services. However, the young woman, who testified at trial, had previously contacted law enforcement.
Green waited outside for the escort in his vehicle. After music time had passed without seeing the female, Green walked into the hotel where he was arrested by the Victoria Police Department. At that time, officers searched his vehicle and discovered a firearm in a compartment in the rear of his vehicle.
During the course of the trial, additional testimony revealed that Green had possessed and even brandished a firearm on multiple drug deals and that he had assaulted one of his female victims with the firearm.
Green has been in custody since the time of his arrest where he will remain pending sentencing.
The indictment and conviction of Green was the result of an investigated by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Victoria Police Department. The case was prosecuted by Assistant United States Attorney Patricia Hubert Booth.
Crime Stoppers Tip Helps Catch Bank RobberRead the Press Release
McALLEN, Texas – A Palmview resident accused of robbing the International Bank of Commerce in McAllen has now been convicted, United States Attorney Kenneth Magidson announced today. Erick Lee Chiu, 21, entered a plea of guilty just a short time ago.
In November 2012, Chiu walked into the bank wearing a wig and trying to conceal his identity, and handed the teller a note demanding money. The note threatened that he had a gun, but that no one would be hurt as long as they did not call the police. Bank tellers handed Chiu the money and fled the bank before law enforcement arrived.
Through a McAllen Crime Stoppers Tip the following day, police were able to identify Chiu as the bank robber. He was subsequently arrested and the money was recovered.
Chiu is set for sentencing before Chief United States District Judge Ricardo H. Hinojosa on June 11, 2013. At that time, he faces as much as 20 years in prison, a maximum $250,000 fine.
He has been in custody since Nov. 17, 2012, and will remain in custody pending sentencing.
The FBI investigated the case along with the McAllen Police Department. Assistant U.S. Attorney Kristen J. Rees is prosecuting the case.
Corpus Christi Radiologist Group and Children’s Genetic Services Clinic Settle False Claims Act AllegationsRead the Press Release
HOUSTON – Children’s Physician Services of South Texas (CPSST) and Radiology Associates have agreed to pay to settle claims they violated the False Claims Act and the Texas Medicaid Fraud Prevention Act between 2002 and 2007, United States Attorney Kenneth Magidson announced today. CPSST, a part of the Driscoll Health System, has agreed to pay $1.5 million, while Radiology Associates, an independent physician group serving the Driscoll Health System, will pay $800,000 to settle claims they billed and received payment twice for the professional reading and interpretation of genetic ultrasounds.
“Improper double billing by health care providers defrauds the government funded health care programs, adds to the government’s deficit and, most importantly, reduces the funds available to meet the patients’ medical needs,” said Magidson. “In addition to yielding a substantial recovery for taxpayers, this settlement should serve notice to health care providers that taxpayers will not tolerate, much less accept, paying twice for services rendered to them.”
The settlement announced today involved allegations that CPSST billed and received payment for Radiology Associates’ professional services and, without disclosing the payments, directed Radiology Associates to bill and receive payment for the same professional services.
There are two components for each ultrasound, a technical component and a professional component. The technical component refers to the actual taking of the ultrasound by a technician and the professional component refers to the reading and interpretation of the ultrasound images by a physician, usually a radiologist. CPSST made arrangements to have Radiology Associates read and interpret the ultrasounds taken at CPSST. From Jan. 1, 2002, to June 1, 2007, Radiology Associates read and interpreted several thousand ultrasounds for CPSST. The understanding between the two providers was that CPSST would bill and receive payment solely for the technical component and Radiology Associates would bill and receive payment solely for the professional component. In reality, CPSST billed and received payment for both the technical and professional components without informing or disclosing this fact to Radiology Associates. Upon discovery of this fact, Radiology Associates informed CPSST about the double billing for the professional component, but CPSST denied billing for the professional component except for a few accidental and isolated occasions. Instead, CPSST instructed and directed Radiology Associates to continue to bill for the professional component and reaffirmed that CPSST would only bill for the technical component. Despite additional evidence of double billing, Radiology Associates ignored the evidence, accepted CPSST’s misrepresentations without question and continued to bill and receive payment for the professional component.
Government funded health care programs such as Medicare, Medicaid, TRICARE and the Federal Employees Health Benefits program agree to pay enrolled health care providers once for the technical and professional components of each ultrasound performed on a patient covered by theses health care programs. Health care providers enrolled and servicing patients covered by these government funded health care programs are prohibited from billing and receiving payment twice for the ultrasound’s technical or professional component.
The settlement resolves allegations made against Radiology Associates, Children’s Physician Services of South Texas, Center for Genetic Services, and Raymond C. Lewandowski Jr. M.D. in a qui tam or whistleblower lawsuit filed in 2008 by a former revenue manager and coding compliance officer with Radiology Associates. Under the False Claims Act, private citizens can bring suit on behalf of the government and share in any amounts that are obtained through that legal action. In this case, the share will be between 15 - 25% of the proceeds of the overall settlement.
The investigation was conducted by the United States Department of Health and Human Services - Office of Inspector General and the State of Texas Attorney General’s Office - Medicaid Fraud Control Unit (MFCU) and Civil Medicaid Fraud Division. Assistant United States Attorney Jose Vela Jr., Assistant Attorney General of Texas Christen Nedwick and MFCU Investigative Auditor Clint Lawhon led the investigation.
Foreign National Convicted in Multi-Million, Multi-State Criminal OperationRead the Press Release
HOUSTON – Sameh Khaled Danhach, also known by many other aliases, has been convicted of all six counts as related to the interstate transportation of stolen goods and obstruction of justice, United States Attorney Kenneth Magidson announced today. The jury returned its verdicts after just an hour of deliberation following a five-day trial.
Danhach, who resides in Houston, is a legal permanent resident of the United States from Lebanon. The evidence demonstrated he was a high-ranking fence involved in a multi-million dollar, multi-state criminal enterprise where he received stolen over-the-counter (OTC) medicine, baby formula, health and beauty supplies and shampoo for later re-packaging and shipping. This criminal enterprise, among other things, engaged in using “boosters,” primarily undocumented Central Americans, to steal over-the-counter medication and baby formula. A “booster” is a criminal who steals goods and merchandise not for personal use but for re-sale to a “fence” for a fraction of its retail value. A “fence” is a person who receives stolen goods and merchandise from “boosters” and others. The “fence” then re-sells the stolen goods and merchandise to third parties for a profit.
The scope of this criminal enterprise ranged from April 2008 to February 2012.
Danhach owned and operated Houston-located SKD Trading Inc. and Lifetime Wholesale Inc., both shell companies operated under several other names used to facilitate their illegal activity. He hired undocumented aliens from Central and South America to travel throughout the United States to steal the OTC, beauty products and baby formula from major retail chain stores such as Target, Wal-Mart, CVS and Walgreens. He facilitated this interstate travel by renting cars for the boosters and by paying the boosters in cash for the stolen merchandise.
To avoid detection by law enforcement, the undocumented aliens would ship the stolen merchandise to Danhach using fraudulent FedEx accounts in his shell company names. As a result of the fraudulent accounts, FedEx suffered a loss of $540,000. A representative from FedEx testified at trial about the sophistication of Danhach’s scheme stating that Danhach and others set up approximately 29 accounts using various names, company names and addresses without paying for any of the shipments.
Once the stolen merchandise arrived at Danhach’s Houston warehouse, he had his “employees,” remove any retail store identifying labels and security features. Danhach would then have the stolen products repackaged and then re-sold to wholesalers across the nation.
A search warrant was executed on March 1, 2012, at Danhach’s Houston warehouse, at which time agents seized criminal ledgers maintained by Danhach. The ledgers specifically showed the stolen merchandise coming into the warehouse, the retail labels on the stolen merchandise being removed and the stolen merchandise being repackaged and shipped back out of the warehouse. At the time of the search, Danhach instructed his co-conspirator to hide a video recording from the warehouse’s security cameras in the warehouse’s ceiling.
Several cooperating witnesses testified on behalf of the United States, including one of his “boosters, ” who admitted that between August 2011 and February 2012, he traveled around the Houston area and the state in cars rented by Danhach, stealing OTC medication and beauty supplies from Wal-Marts. In a six-month-period, the witness admitted he was responsible for stealing more than $230,000 worth of merchandise from Wal-Mart.
United States District Court Judge Sim Lake, who presided over the trial has set sentencing for April 25, 2013. Danhach faces up to five years for the one count of conspiracy to transport stolen merchandise in interstate commerce as well as up to 10 years in
as to each of the three convictions for transporting stolen merchandise. Danhach further faces a maximum sentence of 20 years for each of the two obstruction of justice counts. All charges also include a possible $250,000 fine. Danhach could also face the loss of his legal permanent residence status and deportation from the United States.He will remain in custody pending his sentencing hearing.
This matter was investigated by the FBI, Houston Police Department-Major Offenders Division and the Harris County Sheriff’s Office, with the cooperation of CVS, Walgreens, Wal-Mart, Mead Johnson and Abbott Nutrition. The case was prosecuted by Assistant United States Attorneys Kebharu Smith, Joe Magliolo and Albert Ratliff.
Several Charged in Counterfeit DVD/CD InvestigationRead the Press Release
CORPUS CHRISTI, Texas - Seven Corpus Christi residents have been indicted as a result of the efforts of a multi-agency investigation into intellectual property rights violations, United States Attorney Kenneth Magidson announced today along with Brian Moskowitz, special agent in charge of Homeland Security Investigations (HSI).
Those arrested today include William Joseph Henneberger, 32, Ruth Gloria Henneberger, 36, Daniel Justino Diaz, 33, Vanessa Pecina, 30, Leticia Perez Aguilar, 39, and Joe Silvas, 43. They are expected to an initial appearance before U.S. Magistrate Judge Brian L. Owsley tomorrow afternoon.
One remaining defendant, Joe Cruz Hernandez, 31, is also charged but not yet in custody. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact HSI at 1-800-973-2867.
“The theft of intellectual property is not a victimless crime and copyright infringement offenses should be of concern to every American with the cost ultimately borne by the consumer,” said Moskowitz. “The collaboration between law enforcement and industry seen in this operation should leave no doubt that we are committed to protecting the rights of those who play by the rules.”
The indictment alleges the defendants infringed copyrights by reproducing and distributing 10 or more copyrighted works during a 180-day period.
The indictments stem from a year-long investigation into the manufacture and distribution of counterfeit DVDs and music CDs in the Corpus Christi area. Vendors at a Corpus Christi flea market and a local business were identified as being involved in the manufacture and distribution of counterfeit DVDs and music CDs, according to the indictment. As a result, agents obtained federal search warrants in August 2012 for three residences and local business known as Bomb Records, all located in Corpus Christi. The indictment alleges that 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.
The defendants face up to five years imprisonment and a fine up to $250,000, if convicted.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by HSI, Corpus Christi Police Department Organized Crime Unit, Kingsville Specialized Crimes Task Force, Customs and Border Protection, the Recording Industry Association of America and the Motion Picture Association of America. This case is being prosecuted by Assistant United States Attorney Hugo R. Martinez.
Missouri Man Charged with Counterfeit Viagra and Cialis TraffickingRead the Press Release
HOUSTON - Timothy Ross Estabrook, 52, has been charged with trafficking in counterfeit Viagra® and Cialis®, introducing and delivering misbranded drugs into interstate commerce, smuggling and conspiracy, United States Attorney Kenneth Magidson announced today.
The indictment, returned under seal Feb. 13, 2013, in Houston, was unsealed yesterday after he made an initial appearance in Kansas City, Mo. He has been released on bond and is scheduled to appear in Houston to answer the charges on March 14, 2013. Estabrook was arrested at his home in Lake Waukomis, Mo., on Monday Feb. 25, 2013.
Estabrook allegedly smuggled counterfeit Viagra® and counterfeit Cialis® into the United States from China. The indictment alleges he shipped them from Missouri to Texas in partnership with a co-conspirator in China. Estabrook also allegedly conspired to purchase Tadalafil and Sildenafil, the active ingredients in Viagra® and Cialis®, from a co-conspirator in China.
If convicted, he faces up to 10 years in prison and a maximum $2 million fine for trafficking in counterfeit goods and up to 20 years and a $250,000 fine for smuggling. If convicted of conspiracy charge, he further faces a sentence of up to five years in federal prison and a $250,000 fine and up to three years and a $10,000 fine for introducing misbranded drugs into interstate commerce.
The investigation into Estabrook was conducted by Homeland Security Investigations and the Food and Drug Administration. Assistant United States Attorney Julie Redlinger is prosecuting the case.
Laredo Resident Sentenced in Alien Smuggling CaseRead the Press Release
LAREDO, Texas – Jorge Castenada, 38, of Laredo, has been sentenced to total of 63 months following his conviction of alien smuggling, United States Attorney Kenneth Magidson announced today. Jorge Castenada pleaded guilty Oct. 22, 2012.
Following a four-hour sentencing hearing today, visiting U.S. District Judge Keith P. Ellison handed Castenada a sentence of 51 months for the alien smuggling offense and another 12 months for violating terms of supervised release, to be served consecutively, for a total of 63 months.
In May 2012, Castenada agreed to transport an undocuented Guatemalan female alien from McAllen to Houston via Laredo for $1500. Castenada, who already has an extensive criminal history, then took the lone female alien to a deserted house where he sexually assaulted her and threatened her to keep quiet. Later in the day, he was stopped by Border Patrol for an immigration inspection and was arrested for alien smuggling when it was revealed he was transporting an alien in violation of federal law.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Sonah Lee.
Falfurrias Man Sent to Prison for Alien Smuggling Scheme That Resulted in DeathRead the Press Release
CORPUS CHRISTI, Texas – Lewey Martinez, 32, of Falfurrias, has been ordered to prison for his role in an alien smuggling and harboring scheme that resulted in the September 2011 death of a 24-year-old Mexican national, United States Attorney Kenneth Magidson announced today. Martinez pleaded guilty Nov. 14, 2012.
At a sentencing hearing yesterday afternoon, Senior U.S. District Judge Janis Graham Jack, who accepted the guilty plea, handed Martinez a 115-month sentence. Martinez will also be required to serve a term of three years of supervised release following completion of the prison term.
At his plea hearing last year, the government detailed that for five years, Martinez coordinated the transportation of aliens around the U.S. Border Patrol Checkpoint in Falfurrias. On the evening of Sept. 15, 2011, Martinez arranged for approximately 20 illegal aliens to hike around the checkpoint with the assistance of guides. After walking around the checkpoint, the aliens were driven to a stash house on Martinez’s property.
Shortly after the group’s arrival, two brush guides drove to the stash house with an additional alien who had died, or nearly died, from exposure and dehydration. When it became apparent the victim was deceased, Martinez and two others loaded the victim's body into a pickup truck and drove it to a public intersection. Martinez then called the emergency operator from a payphone and directed police to the body. Following his arrest, Martinez admitted his role in the smuggling operation and his involvement in the disposal of Gonzalez's body.
Martinez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations. Assistant United States Attorney Jeffrey D. Preston prosecuted the case.
Firearm Possession Lands Mexican Citizen in Federal PrisonRead the Press Release
BROWNSVILLE, Texas – Luis Ivan Nino-Duenes, 28, of Control, Tamaulipas, Mexico, has been sentenced to prison following his convicted of being an alien in possession of a firearm, United States Attorney Kenneth Magidson announced today. Nino-Duenes pleaded guilty on June 19, 2012, immediately prior to jury selection in his trial.
Yesterday, U.S. District Court Judge Hilda G. Tagle, who accepted the guilty plea, handed him a 60-month prison term and three years of supervised release after he completes his term of incarceration. At the hearing yesterday, additional evidence was presented including that Nino-Durenes was a member of the Gulf Cartel for three years prior to his arrest and an enforcer for Plaza Boss Jose Luis Zuniga-Hernandez. Evidence was also presented that while in jail on this case, Nino-Duenes joined the prison gang known at the “Partido Revolutionario Mijicano” (PRM). The court found that he obstructed justice by joining the PRM and attempting to intimidate a witness.
At sentencing, Nino-Duenes argued that he did not join the PRM or obstruct justice. He argued that the federal sentencing guidelines called for a sentence of 21 months given he pleaded guilty and accepted responsibility for his crime.
In handing down the sentence, Judge Tagle indicated the court would issue a non-guideline sentence, noting the defendant’s flight from a gunfight in Mexico was an example of spill over violence. The court stated that “crime begins over there (Mexico) and ends over here (U.S).”
At the time of his guilty plea, Nino-Duenes admitted he had entered the United States illegally and that at the time of his arrest he was in possession of a customized gold, diamond and ruby encrusted Colt 38 Super handgun.
Nino-Duenes has been in custody since his arrest on Oct. 26, 2011, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorney Angel Castro.
29 Taken into Custody in Massive Racketeering Indictment, Including 17 Former TDCJ OfficersRead the Press Release
CORPUS CHRISTI, Texas- A sealed indictment charging numerous defendants with racketeering violations has been unsealed following their recent arrests throughout the Southern District of Texas and elsewhere. The arrests include 17 former Texas Department of Criminal Justice (TDCJ) correction officers and 12 others in relation to the case.
The indictment was announced today by United States Attorney Kenneth Magidson along with along with Special Agent in Charge of Homeland Security Investigations (HSI) Brian M. Moskowitz, Inspector General Bruce Toney with TDCJ - Office of the Inspector General (TDCJ-OIG), Special Agent in Charge of Internal Revenue Service – Criminal Investigation (IRS-CI) Lucy Cruz, Special Agent in Charge Melvin King Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Corpus Christi Police Department (CCPD) Chief Floyd D. Simpson and Postal Inspector in Charge Robert B. Wemyss of U.S. Postal Inspection Service.
Following an operation involving federal, state and local law enforcement personnel, a total of 22 have been arrested on criminal charges in the indictment. Seven defendants named in the indictment were already in custody. As a result, a total of 29 people are now in custody in connection with the four-year investigation. Thirteen former correction officers were arrested on racketeering charges and four others on separate drug charges. The indictment remains sealed as to those charged but not as yet in custody.
The arrest of the former correction officers was a joint effort between TDCJ-OIG 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 returned under seal by a federal grand jury last week, 13 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.
Today’s announcement caps a four-year investigation conducted by the U.S. Attorney’s Office, HSI, TDCJ-OIG, IRS-CI, ATF, CCPD Gang and Organized Crime Units, USPIS and the Bee County District Attorney’s office. 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 case is being prosecuted by Assistant United States Attorneys Mark Patterson and Michael Hess.
Two Sentenced for Attempted Smuggling of Assault Rifle MagazinesRead the Press Release
LAREDO, Texas – Julio Cesar Flores-Martinez, 47, and Francisco Padilla-Perez, 41, both Mexican nationals living in Nuevo Laredo, Mexico, have been ordered to prison for their roles in attempting to smuggle 652 assault rifle magazines into Mexico, United States Attorney Kenneth Magidson announced today.
Visiting United States District Judge Keith P. Ellison ordered Flores-Martinez and Padilla-Perez to serve sentences of 46 and 50 months in federal prison, respectively. As illegal aliens, both are expected to face deportation proceedings following release from prison. In sentencing the pair, Judge Ellison commented that “both of these defendants have caused me great unease.”
In April 2012, Special agents with Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted an undercover operation in which they posed as assault rifle magazine dealers, willing to sell the items for illegal export into Mexico. Padilla-Perez contacted the agents and placed his order for 650 high-capacity AK-47 assault rifle magazines which he said he wanted to smuggle into Mexico for which he agreed to pay $19,500 in cash. On April 19, 2012, he met with the undercover agents at a parking lot in Laredo. He showed them the money and told the agents he had already secured a Mexican truck driver who was going to smuggle the magazines into Mexico in a semi-tractor. Flores-Martinez, the Mexican truck driver, had arrived at the same parking lot at Padilla-Perez’s request and was waiting for the hand-off.
Padilla-Perez inspected the contents of nine suitcases brought by the agents, which were packed with the 652 magazines. He and the agents then walked over to Flores-Martinez who received the suitcases and hid them in the cab of his semi-tractor. Padilla-Perez handed the undercover agents a white plastic bag containing $19,500 cash. Flores-Martinez ultimately drove to one of the international bridges in Laredo where the items were discovered, and he was subsequently arrested.
At sentencing today, Flores-Martinez maintained Padilla-Perez promised to pay him $1,500 for smuggling the merchandise into Mexico.
Both men have remained in federal custody since the day of their arrest where they will remain pending transfer to a U.S Bureau of Prisons facility to be determined in the near future.
The matter was investigated by HSI and ATF in conjunction with the Laredo Police Department, Border Patrol, Customs and Border Protection and the Department of State. Several police officers and Border Patrol agents have been cross-designated as ATF task force officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Homero Ramirez prosecuted the case.
South Texas Couple Sentenced in Bankruptcy Fraud CaseRead the Press Release
HOUSTON – Michael Giventer, 53, formerly of Brownsville, has been ordered to prison for five years following his conviction of conspiracy to commit bankruptcy fraud, United States Attorney Kenneth Magidson announced today. He pleaded guilty to the charge in Spring 2012, along with his wife, Florida resident Julia Shavabskaya, 40.
Today, U.S. District Judge Vanessa D. Gilmore handed Giventer a term of imprisonment of 60 months which will be followed by three years of supervised release. Shavabskaya was sentenced earlier this year to a term of six months in federal prison followed by six months of home confinement. She will also serve three years of supervised release. Both were further ordered to restitution in the amount of $9,106,606.15.
From on or about Aug. 27, 2002, and continuing to July 2010, Giventer caused the incorporation of two business entities as holding companies to receive income from clinics providing various forms of health care services to individuals who were covered by Workers’ Compensation insurance. Those businesses were Ambucare Inc. and Open Diagnostic Imaging Inc. located in the Brownsville area. Ownership of both companies was placed solely in the name of Shavabskaya. Through these two companies, Giventer received income from a number of these clinics, such as Valley Center for Pain and Stress Management, Functional Pain Center, Palladium for Surgery and Valley Comprehensive Pain Management.
On Nov. 4, 2005, Giventer filed for bankruptcy under chapter 7 in the Southern District of Texas. During the proceedings, Giventer was required to file, under penalty of perjury, various schedules consisting of assets, debts, liabilities and a statement of financial affairs in which he was required to disclose his income, debts, property and transfers of property, among other things. In some of the documents, Giventer indicated he did not own an interest in Ambucare, Open Diagnostic Imaging and other properties and assets when in truth and in fact, he controlled, managed and received income from these entities and made all decisions about how their income would be distributed. Shavabskaya falsely testified she owned the companies and that Giventer did not own or operate them. Additionally, both Giventer and Shavabskaya knew and falsely denied under oath any ownership interest in these entities in order to deceive, frustrate and prevent creditors and the bankruptcy trustee from identifying and collecting assets as part of the bankruptcy estate to be distributed for the benefit of creditors.
This case was jointly investigated by the FBI and the Department of Health and Human Services. The case is being prosecuted by Assistant United States Attorney Quincy L. Ollison.
Rio Bravo Man Who Provided Assault Rifles to Mexican Gangs Sentenced to PrisonRead the Press Release
LAREDO, Texas – Silverio Venegas Jr., 37, of Rio Bravo, has been sentenced to serve a total of 51 months in prison, United States Attorney Kenneth Magidson announced today.
An investigation into suspicious purchases at local gun stores by the Bureau of Alcohol, Tobacco, Forearms and Explosives (ATF) led to the discovery that Venegas purchased an AK-47 rifle, an AR-15 rifle and an AR-15 pistol from a local gun store in Laredo between Dec. 17-30, 2011. Agents confirmed that Venegas had also listed a prior address as his current residence, also a federal violation, and eventually encountered Venegas. In an interview with ATF agents, Venegas admitted he was hired by someone from Mexico who paid Venegas to buy the three firearms. Venegas was driven to the store each time and purchased as specific model, make and caliber of firearm.
The three firearms were later discovered at crime scenes in Mexico. The AR-15 pistol, which is the pistol version of the AR-15 assault rifle, was found less than a month after its purchase in Nuevo Laredo, Mexico, after a shootout between a Mexican Army patrol and gunmen. According to Mexican reports obtained by ATF, several gunmen traveling in six vehicles opened fire on the soldiers who return their fire. Five Mexican soldiers were wounded. One soldier and four gunmen died of their injuries in the exchange. The two rifles Venegas purchased were found a crime scene in Saltillo, Mexico.
Venegas later pleaded guilty to three charges of making false statements on federal firearms forms 4473 falsely stating the firearms were for him when they were actually for unknown persons in Mexico. Today, United States District Judge Keith P. Ellison handed Venegas three 51-month-terms on each of the three counts, to be served concurrently, related to the purchase of two assault rifles and one assault pistol. He was further ordered to serve a three-year-term of supervised release after completion of the prison sentences.
The matter was investigated by the ATF in conjunction with the Laredo Police Department and the United States Border Patrol. Several police officers and Border Patrol agents have been cross-designated as ATF Task Force Officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Homero Ramirez prosecuted the case.
Local Businessman Convicted in $19+ Million Health Care Fraud SchemeRead the Press Release
HOUSTON - Joseph Edem, 53, 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.
Edem was originally indicted with former doctor Donald Gibson II, 56, of Sugarland. That indictment alleged 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, according to the indictment.
From January 2007 through January 2012, Gibson allegedly 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 admitted today that he conspired to cause the submission of false claims to the Medicare and Medicaid programs and share in the proceeds. Edem admitted he paid patient recruiters for referring Medicare/Medicaid beneficiaries and also paid Medicare beneficiaries for showing up at the medical clinics.
U.S. District Court Judge Lynne N. Hughes, who accepted the guilty plea today, has set sentencing for May 28, 2013, at which time Edem faces up to 10 years in federal prison, as well as a possible $250,000 fine.
The case against Gibson is pending. He is presumed innocent unless and until convicted through due process of law.
This case is the result of a joint investigation involving multiple federal and state agencies including agents and investigators of the Railroad Retirement Board, Secret Service, Drug Enforcement Administration, FBI, the Texas Attorney General’s Medicaid Fraud Control Unit and U.S. Department of Health and Human Services – Office of Inspector General. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Andrew Leuchtmann are prosecuting this case.
Houston Man Sentenced for Grocery Store Bank RobberyRead the Press Release
HOUSTON – A Houston man indicted for a string of bank robberies in Houston during the summer of 2012 has been ordered to federal prison, United States Attorney Kenneth Magidson announced today. Kyle Lee Puglisi, 27, was charged with multiple counts of bank robbery after allegedly robbing five banks located in various grocery stores throughout the Houston area between July and September of this year. He pleaded guilty Monday, Dec. 10, 2012.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Puglisi a 63-month sentence. At the hearing, additional testimony regarding personal pressures facing Puglisi at the time of the robberies was presented in a plea for leniency from the court. However, the court, citing the fact his crimes involved five separate banks not just the one to which he pleaded guilty, rejected this plea, and handed down the maximum sentence. He was further ordered to pay restitution and to serve a three-year-term of supervised release following completion of the prison term.
Puglisi admitted that on July 2, 2012, he robbed the First Convenience Bank located inside a Kroger grocery store in north Houston. Late that morning, Puglisi entered the grocery store and began shopping. He placed several grocery items from the shelves into a grocery cart, then pushed the grocery cart toward the bank. He approached the teller, produced a revolver from the waistband of his pants and stated, “DON'T MAKE IT OBVIOUS.” The teller, fearing for his life, pulled some cash and gave it to Puglisi. Puglisi then fled the grocery store in an unknown direction, leaving the groceries and cart near the teller counter. Investigators were able to identify Puglisi as the person responsible for the robbery from evidence collected at the scene.
Puglisi was apprehended by authorities on Sept. 19, 2012, shortly after committing another robbery of the First Community Credit Union in an HEB grocery store in Spring. A small amount of U.S. currency and a pellet gun were also seized at the time of Puglisi’s arrest.
Puglisi will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI. Assistant U.S. Attorney Richard D. Hanes is prosecuting the case.
Federal Judge Sentences Last of 5 Convicted of Smuggling More Than 1 Ton of MarijuanaRead the Press Release
McALLEN, Texas – A federal judge in McAllen has sentenced the last of five men who previously pleaded guilty to smuggling approximately 2,672 pounds of marijuana, United States Attorney Kenneth Magidson announced today.
Arnoldo Gonzalez-Chavez, 37, Juan Ornelas-Ahumeda, 31, and Jonathan Ricardo Alvarez-Martinez, 20, all of Mission; and Antonio Mendoza-Aguirre, 33, and Rafael Murguia-Mendoza, 42, both of McAllen, all previously pleaded guilty.
Today, Senior U.S. District Judge Randy Crane sentenced Gonzalez-Chavez to a term of 30 months in federal prison to be followed by three years of supervised release. Previously, Judge Crane handed Mendoza-Aguirre and Ornelas-Ahumeda to respective terms of 151 and 63 months, while Murguia-Mendoza and Alvarez-Martinez were each ordered to serve 70 months in federal prison.
The defendants were originally charged in an indictment returned on Jan. 24, 2012, and ultimately pleaded guilty to possessing marijuana with the intent to distribute it. Each of the five men admitted to participating in a stash house operation designed to receive and re-package shipments of marijuana in preparation for northbound transportation. Mendoza-Aguirre supervised the operation with the assistance of Murguia-Mendoza, recruited Ornelas-Ahumeda and Gonzalez-Chavez to wrap the marijuana in plastic and grease and hired Alvarez-Martinez to transport the marijuana.
On Jan. 11, 2012, agents arrested four of the defendants after they departed a stash house in Mission, where a subsequent search revealed 114 bundles containing 1,212 kilograms of marijuana. Further investigation led agents to another residence in McAllen where they arrested Alvarez-Martinez and discovered $49,000 in United States currency.
This case was investigated by the Drug Enforcement Administration and assisted by the McAllen and Mission Police Departments. The case is being prosecuted by Assistant United States Attorney Grady J. Leupold.
Alvin Man Gets 27 Years for Multiple Bank Fraud ConvictionsRead the Press Release
HOUSTON — Patrick Cody Morgan, 46, of Alvin, has been sentenced to 27 years in federal prison for his convictions on multiple counts of bank fraud, United States Attorney Kenneth Magidson announced today. A federal jury sitting in Houston found Morgan guilty on Oct. 30, 2012, of conspiracy to commit bank fraud and nine counts of bank fraud following two days of trial and less than three hours of deliberation.
Today, U.S. District Judge Lynn N. Hughes, who presided over the trial, handed Morgan a total sentence of 324 months to be followed by five years of supervised release. Morgan was also ordered to pay restitution in the amount of $25,277,802.
At trial, the government presented evidence that from July 2004 and continuing through September 2007, Morgan, along with his co-conspirators, participated in a scheme to defraud financial institutions insured by the Federal Deposit Insurance Corporation (FDIC) and residential mortgage lenders. Morgan would locate condominium units in the Houston area from a builder or developer. He would then set up trust accounts with names similar to the condominiums through which the title to pass. Co-defendants would recruit individuals, also known as straw buyers with good credit to act as borrowers in applications for residential mortgage loans to purchase one or more of the properties, which would ultimately go into foreclosure because of the failure to pay the loans.
Within the overall scheme, there were more than 100 properties with a loan amount of more than $39 million. The loss amount was determined to be more than $25 million.
Co-defendants John Elias, 44, Reginald Anderson, 41, Viktor Ly , 43, and Christopher Pearson, 34, all of Houston, previously pleaded guilty to conspiracy to commit bank fraud and will be sentenced on various dates in March and April 2013. Minh Vu, 41, also of Houston, was sentenced to 60 months prison on Feb. 19, 2013.
The case was investigated by the Internal Revenue Service - Criminal Investigation and the FBI and is being prosecuted by Assistant U.S. Attorneys Jennifer Lowery and Carolyn Ferko.
Two Arrested for Failing to Pay Employment TaxesRead the Press Release
LAREDO, Texas – Jorge Montemayor and Leticia Reyna have been arrested following the return of a 14-count indictment accusing them of failure to pay over employment taxes to the Internal Revenue Service (IRS), United States Attorney Kenneth Magidson announced today along with Special Agent in Charge of IRS - Criminal Investigation Lucy Cruz.
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service," said Cruz. "The failure to pay over withheld taxes are very serious offenses; IRS-CI is committed to vigorously pursuing those who violate employment tax laws."
According to the allegations in the indictment, Montemayor and Reyna operated Professional Skilled Services Inc., a home health care business in Laredo. Montemayor opened and began to operate the home health care business GDM Home Health Inc. in 2006. Montemayor and Reyna both were authorized to take care of financial matters for Professional Skilled Services and were listed as signatories on this company’s bank accounts. Montemayor had this same authorization for GDM Home Health Inc., according to the indictment.
As owner/operators with control over their businesses’ financial affairs, Montemayor and Reyna were responsible for collecting and withholding employment taxes from their employees’ paychecks. Employment taxes include federal income tax, Social Security and Medicare taxes. Montemayor and Reyna reported these withheld taxes but allegedly failed to pay them over to the United States. The indictment further alleges Montemayor and Reyna caused their respective companies to divert corporate funds to cover non-business expenses, including trips and entertainment. Montemayor and Reyna still allegedly owe more than $125,000 in employment taxes on behalf of Professional Skilled Services Inc. employees, and Montemayor still owes more than $1.3 million in employment taxes on behalf of GDM Home Health Inc. employees, the indictment alleges.
Failure to pay over employment tax carries a statutory maximum penalty upon conviction of five years in prison and a $250,000 fine.
The investigation resulting in the charges against Montemayor and Reyna were conducted by the IRS-CI and FBI. Assistant United States Attorney Elizabeth R. Rabe is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Life Sentenced Ordered Marijuana Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A total of nine men have now been sentenced to federal prison as a result of the efforts of a multi-agency Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. The conspiracy ran from 2003 until their arrests in June 2012.
Jesus Marroquin, 50, and Flavio Tamez, 47, both of Rio Grande City; Adrian De la Garza, 41, of Sullivan City; Rene Salazar, 42, Jose Figueroa, 36, Edwardo Munoz, 36, Samuel Garcia, 52, and Onofre Lopez, 37, all of Falfurrias; and Alejandro Garza, 43, of Mission - each entered their guilty pleas before U.S. District Judge Nelva Gonzales Ramos on Sept. 6, 2012. Three others - Roberto Garza, 42, and Jesus Gregorio Lopez aka Goyo Lopez, 63, both of Mission; and Ramon Zamora, 52, of Rio Grande City, were convicted following a seven-day trial on Oct. 25, 2012.
Today, Judge Ramos ordered Roberto Garza, identified as a leader in the conspiracy, to serve the rest of his life in prison. Zamora, also considered a leader, was also sentenced today, to a term of 360 months in federal prison.
On Feb, 6, 2013, Lopez aka Goyo, was sentenced to 292 months, at which time his interest in ranch property was ordered forfeited to the United States. Last month, Garcia was sentenced to 120 Months, while De la Garza, Salazar, Figueroa, Munoz and Lopez received respective sentences of 50, 30, 15, eight and 84 months. The remaining three defendants - Garza, Tamez and Marroquin are set for sentencing next month.
The criminal organization specialized in avoiding the Falfurrias Border Patrol Checkpoint by using ranches adjacent to the checkpoint.
Evidence presented at trial by the government included 19 marijuana seizures directly linked to this organization, totaling more than three tons of marijuana seized by law enforcement. Further, evidence presented showed that an outdoor restroom (outhouse) was used by the organization to hide marijuana on one of the ranches. The outhouse has a secret underground compartment where they stored up to 1000 pounds of marijuana at a time. Evidence also included multiple vehicles used by this organization to circumvent the checkpoint, including trucks and multiple all-terrain vehicles.
Tamez has agreed to the criminal forfeiture of two pieces of real property located in Starr County - a house built by Tamez using drug proceeds and a business used by Tamez to conduct his drug business. Tamez also agreed to forfeit $230,000 in currency seized from a safe deposit box where Tamez hid drug proceeds. Marroquin has also agreed to criminally forfeit several pieces of jewelry and $6,000 in currency seized during his arrest.
The real properties involved in this conspiracy were either purchased with drug proceeds or used to facilitate the drug-trafficking activity. The ranch known as “Campo de Goyo” or the “Carolina Ranch,” was specifically used by this organization as a staging area to store large quantities of marijuana before proceeding through the ranches around the Falfurrias Border Patrol Checkpoint.
The OCDETF investigation leading to the criminal charges was conducted in Corpus Christi lead by Homeland Security Investigations, Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, Brooks County Sheriff’s Office, U.S. Border Patrol, Customs and Border Protection and the United States Marshals Service. This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Former Conroe Resident Gets 30 Years for Conspiring to Produce Child PornographyRead the Press Release
HOUSTON – Matthew David Eyerly, 36, has been handed a 30-year term of federal imprisonment following his conviction of conspiracy to produce child pornography and possession of child pornography, United States Attorney Kenneth Magidson announced today. Eyerly pleaded guilty May 16, 2012.
Today, U.S. District Judge Keith P. Ellison handed Eyerly the 360-month term which will be followed by a term of supervised release to last the rest of his life. Eyerly was further ordered to pay restitution to two known victims totaling $6,000 and will also be ordered to register as a sex offender.
The investigation into Eyerly began following several downloads of child pornography over the Internet by FBI officers in Tulsa, Okla.; Buffalo, N.Y.; and Detroit, Mich., which were traced to a computer used by Eyerly. On Nov. 9, 2006, agents located Eyerly at an apartment on Wilson road in Conroe along with an adult female and minor child. When agents told Eyerly they were there regarding a file server, Eyerly admitted to having operated one but said he gave it up, in part, due to his new relationship with the female. At that time, Eyerly consented to a search of his computer.
According to documents in support of his guilty plea, when asked about the minor child in the apartment, Eyerly admitted there would be pictures of the child on the computer. Eyerly admitted to digital and oral contact with the genitals of the child and having taken pictures of these acts. He said this took place at an earlier visit in July 2006 in Conroe when the woman left him alone with the child in a motel room. Eyerly also claimed the woman sent him nude photos of the child over the Internet.
A forensic exam was conducted which revealed images of the child on his computer as well as additional images of child pornography downloaded from the Internet not involving the minor child.
Eyerly will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant United States 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."
Felon in Possession Handed 15-Year Prison TermRead the Press Release
MCALLEN, Texas – A convicted felon in possession of a firearm and ammunition has been handed a significant federal term of imprisonment, United States Attorney Kenneth Magidson announced today. Jose Antelmo Mendez, 49, of Mission, pleaded guilty Feb. 6, 2012.
Today, Chief U.S. District Judge Ricardo H. Hinojosa sentenced Mendez to a total of 180 months of imprisonment to be followed by a two-year-term of supervised release. His sentence was subject to enhancements for being an armed career criminal as he had been convicted on two previous occasions of delivering of a controlled substance.
On July 5, 2010, Hidalgo County Sheriff’s Deputies responded to a call for assistance in relation to an allegation of domestic abuse. When deputies responded to the Mendez residence, they discovered him in possession of a 12-gauge shotgun and 10 shotgun shells. Mendez was taken into custody and subsequently found to be a convicted felon.
Previously released on bond, Mendez was taken into custody following a violation of his bond conditions, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hidalgo County Sherriff’s Department. The case was prosecuted by Assistant United States Attorney (AUSA) Steven Schammel. AUSA Juan Alanis handled the sentencing hearing today.