Southern District of Texas

HOUSTON - Tyrone Reid, 22, of Houston, has been found guilty of a conspiracy involving numerous co-defendants who lied to federal firearms dealers in the purchase of firearms, United States Attorney Kenneth Magidson announced today. The Houston federal jury returned its verdicts this afternoon after three days of trial and approximately two hours of deliberation.

The evidence presented at trial demonstrated that Reid would induce others to claim that they were the actual buyer of the firearms, even though Reid supplied the money and immediately took possession from the buyer. Testimony revealed that none of the purported buyers kept any of the firearms they purchased, many which were later found in crime scenes, both in the United States and in the Virgin Islands.

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

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

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

U.S. District Judge David Hittner, who presided over trial, has set sentencing for May 14, 2013, at which time Reid faces up to 20 years in prison. 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations. Assistant United States Attorneys Megan J. Paulson and Joe Magliolo prosecuted the case. 

HOUSTON - Carlos Melchor-Sanchez, 47, of Houston, has been ordered to federal prison following his conviction on one count of theft of government funds from the Social Security Disability Insurance fund, United States Attorney Kenneth Magidson announced today. He entered a plea of guilty to the charge in November 2012.

Today, U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, sentenced Melchor-Sanchez to 21 months in prison.  He also was ordered to pay $83,764 in restitution to the Social Security Administration (SSA). Melchor-Sanchez will also be required to serve a term of three years of supervised release following completion of the prison term.

During his plea, Melchor-Sanchez admitted that from February 1996 through March 2012, he stole approximately $83,000 from the SSA. Melchor-Sanchez admitted he applied for SSA Disability Insurance Benefits using the identity and SSA record of a person named Hector Contreras and began receiving SSA disability benefits in that name beginning in February 1996. He also admitted he had obtained a Texas Driver License (TDL) in the name of Hector Contreras. Melchor-Sanchez admitted he took various actions to maintain the flow of SSA benefits, including swearing to a false affidavit in that false name which he submitted to SSA claiming he was the victim of identity theft. 

In response to a letter from the SSA in August 2008 alerting him that his benefits would be terminated an arrest warrant from Woodland, Calif., for Hector Contreras, Melchor-Sanchez sent his fingerprints to the Superior Court of Yolo County. It was determined, based on a fingerprint comparison, that he was not the Hector Contreras wanted in that county. Melchor-Sanchez forwarded the county court letter to the SSA and continued receiving benefits.

In August 2009, Melchor-Sanchez opened an account at JP Morgan Chase using the Contreras identity and Social Security number. For identification, Melchor-Sanchez used the TDL he obtained in Contreras’ name and a credit card also issued in that name. Melchor-Sanchez also admitted he was deported previously to Mexico on March 10, 1993, and had not been granted permission to re-enter the United States.

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

The criminal charges are the result of an investigation conducted by the SSA - Office of Inspector General. The case was prosecuted by Assistant United States Attorney Al Balboni.

HOUSTON – Robert Edward Cone has been sentenced for using a foreign account in the Channel Islands to corruptly obstruct and impede the Internal Revenue Service (IRS) in the collection of approximately $282,871 in federal income taxes, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of IRS - Criminal Investigation (CI). Cone pleaded guilty on Feb. 10, 2012.

Today, U.S. District Judge Sim Lake sentenced Cone to a term of 12 months and one day in prison to be followed by a one-year-term of supervised release. He was further ordered to pay a fine of $50,000 and has already made full restitution of the unpaid taxes plus penalties and interest altogether totaling $939,917. He is also subject to possible additional civil assessments by the IRS as a result of this offense. 

“At this time of year, when hard-working citizens are sitting down to prepare their tax returns, it is especially disappointing to see the overt steps some individuals will take to hide their taxable funds from the government," said Cruz. “We are determined at the IRS and Department of Justice to halt international tax evasion, and today’s sentence sends a strong message to those who attempt to hide their income in foreign accounts."

According to the plea agreement filed of record in the case, Cone was employed as president of Industrial Holdings Inc. (IHI), a manufacturing company in Houston, during 2001. Under his employment agreement with IHI, Cone was entitled to receive a severance payment equal to four times his annual salary of $250,000. This $1 million severance payment came due in December 2001 when IHI negotiated a merger with another company. 

In anticipation of receiving the $1 million severance payment, Cone emailed a trust company in the Channel Islands seeking advice on establishing an offshore business to help with his U.S. taxes. Cone directed the Foreign Trust Company to form a British Virgin Islands company called Jomach Limited and establish an account under Jomach Limited with the Royal Bank of Canada (Jersey Islands) Limited. Cone directed IHI to wire the $1 million severance payment into the foreign Jomach Limited account. 

A few weeks later, Cone concealed the severance payment and the foreign account from his tax return preparer, not reporting either to the IRS on his tax return. Cone then signed and filed that tax return with the IRS. By concealing the $1 million severance payment, Cone corruptly obstructed and impeded the administration of IRS laws and the collection of federal income taxes totaling approximately $282,871 for tax year 2001. 

Between January 2002 and October 2006, Cone directed the Foreign Trust Company to disburse funds from the Jomach Account to vendors of goods and services that he had purchased in the U.S. and to U.S. bank accounts that he controlled and from which he disbursed funds for his personal use, benefit and consumption. Cone later concealed his interest in the foreign account from another professional tax return preparer, who prepared a 2005 tax return for Cone, that falsely stated he had no interest in any foreign account. However, Cone had, in fact, caused two transfers of $5,000 each to be made to his personal benefit from the Jomach Account during that year. Cone also signed and filed that tax return with the IRS in 2006, further corruptly obstructing and impeding the IRS in the administration of IRS laws. 

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

The investigation was conducted by IRS-CI and was prosecuted by Assistant United States Attorney Jimmy Sledge Jr.

HOUSTON – Gilbert T. Lopez Jr., the former chief accounting officer of Stanford Financial Group Company, and Mark J. Kuhrt, the former global controller of Stanford Financial Group Global Management, were each sentenced today to 20 years in prison for their roles in helping Robert Allen Stanford perpetrate a fraud scheme involving Stanford International Bank (SIB). Both were convicted by a Houston federal jury on Nov. 19, 2012.

The sentences were announced by United States Attorney Kenneth Magidson of the Southern District of Texas; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; FBI Assistant Director Kevin Perkins of the Criminal Investigative Division; Assistant Secretary of Labor for the Employee Benefits Security Administration Phyllis C. Borzi; Chief Postal Inspector Guy J. Cottrell; and Special Agent in Charge Lucy Cruz of Internal Revenue Service-Criminal Investigation.

The trial against Lopez and Kuhrt spanned five weeks. After approximately three days of deliberations, the jury found Lopez, 70, and Kuhrt, 40, both of Houston, guilty of 10 of 11 counts in the indictment. Each defendant was convicted of one count of conspiracy to commit wire fraud and nine counts of wire fraud. Each was found not guilty on one wire fraud count. Both defendants were taken into custody immediately following the jury’s verdict.

In addition to the prison terms, U.S. District Judge David Hittner, who presided over the trial, sentenced Lopez and Kuhrt to serve three years of supervised release and ordered Lopez to pay a $25,000 fine. At today’s hearing, Judge Hittner also found that both defendants obstructed justice by committing perjury at trial. 

Stanford, who was previously convicted in a separate trial, illegally used billions of dollars of SIB’s assets to fund his personal business ventures, to live a lavish lifestyle and for other improper purposes. He was later sentenced to 110 years in prison. James M. Davis, Stanford’s chief financial officer – who pleaded guilty and cooperated with the government soon after SIB was shut down in February 2009 and testified at both Stanford’s trial and the trial of Lopez and Kuhrt – was sentenced to 60 months in prison for his role in the scheme.

The evidence presented at Lopez and Kuhrt’s trial established that they were aware of and tracked Stanford’s misuse of SIB’s assets, kept the misuse hidden from the public and from almost all of Stanford’s other employees and worked behind the scenes to prevent the misuse from being discovered. They also helped Stanford falsely represent to SIB customers during the economic crash in late 2008 that Stanford had infused hundreds of millions of dollars into SIB when he had not. As part of that effort, Lopez and Kuhrt helped design a fraudulent real estate transaction that involved falsely inflating parcels of land purchased at $63.5 million to a purported value of $3.2 billion.

The investigation was conducted by the FBI, U.S. Postal Inspection Service, IRS-CI and the U.S. Department of Labor, Employee Benefits Security Administration. The case was prosecuted by Assistant U.S. Attorney Jason Varnado of the Southern District of Texas and by Deputy Chief Jeffrey Goldberg and Trial Attorney Andrew Warren of the Criminal Division’s Fraud Section.

McALLEN, Texas - Jose Luis Tobias, 28, of Edinburg, has been ordered to prison following his convictions of two counts of conspiring to harbor and transport undocumented aliens and three counts of harboring undocumented aliens, United States Attorney Kenneth Magidson announced today. A federal jury convicted Tobias following two days of trial and approximately five hours of deliberation on Dec. 6, 2012.

Today, U.S. District Judge Micaela Alvarez, who presided over the trial, handed Tobias the 30-month sentence. Tobias will also be required to serve a term of three years of supervised release following completion of the prison term.

Evidence presented at trial proved that on Sept. 25, 2012, Border Patrol agents encountered 31 undocumented aliens in an apartment in Edinburg. The night before, he had assisted in transporting some undocumented aliens north of Edinburg to just south of the Falfurrias checkpoint. When he was apprehended he was preparing to assist in the transportation of more undocumented aliens that night. Evidence also showed that Tobias had also previously delivered food for the undocumented aliens at the Edinburg apartment.

The defense attempted to convince the jury that Tobias was not involved in the alien smuggling and, therefore, not guilty. The jury disagreed and found him guilty of five counts of alien smuggling as charged.

Previously released on bond, Tobias was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Border Patrol investigated the case with assistance from the Edinburg Police Department and the Hidalgo County Precinct 4 Constable’s Office. Assistant United States Attorneys Kristen Rees and Kim Leo prosecuted the case.

McALLEN, Texas – Alejandro Javier Martinez-Pedraza, 19, and Osvaldo Javier Silva-Hernandez, 19, both Mexican nationals who were illegally present in the United States, have been ordered to prison following convictions for possession with intent to distribute 662 kilograms of marijuana, United States Attorney Kenneth Magidson announced today.

On April 27, 2012, both pleaded guilty to transporting 662 kilograms of marijuana north from the Rio Grande River near Abram.  Martinez admitted he helped cross the marijuana from Mexico and helped load it into a truck driven by Silva. As Silva drove the marijuana-laden vehicle, he tried to flee from law enforcement and crashed into one Border Patrol Unit, totaling the vehicle. Luckily, the agents in the unit suffered only minor injuries.

Today, U.S. District Judge Hayden Head sentenced Silva, the driver, to a 135-month sentence. He will also be required to serve a term of five years of supervised release following completion of the prison term. After testimony from the Border Patrol agents, Judge Head found Silva intentionally crashed into the Border Patrol Unit and enhanced Silva’s sentence because of the violent conduct.

Judge Head sentenced Martinez to an 84-month sentence. He will also be required to serve a term of five years of supervised release following completion of the prison term. Judge Head enhanced his sentence because Martinez crossed into the United States from Mexico with the intent to commit this drug trafficking offense.

Both have been in custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

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

CORPUS CHRISTI, Texas – Joseph C. M. Krist, 41, of Bulverde, has been indicted by a Corpus Christi federal grand jury for robbing IBC Bank, United States Attorney Kenneth Magidson announced today.

The unsealed indictment, returned late yesterday, alleges Krist committed a bank robbery of the IBC Bank in Corpus Christi on Jan. 13, 2013. He allegedly used force, violence and intimidation in order to obtain cash from two bank employees, according to the indictment.

Krist is currently in federal custody for violating a previous term supervised release, which he was serving after a previous conviction for a robbery in San Antonio.   

The case is being investigated by FBI and the Corpus Christi Police Department with the assistance of the U.S. Marshals Service. Assistant United States Attorney Lance Duke 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.

HOUSTON – Four people have been sentenced to federal prison for robbing an interstate traveling jeweler of jewelry in College Station, United States Attorney Kenneth Magidson announced today.

Ivan Carvajal, 30, and Tito Vargas, 25, both of Houston, previously pleaded guilty and were sentenced by U.S. District Court Judge Lynn Hughes to 136 and 57 months, respectively. Luis Flores, 22, of Houston, and Maria Guitierrez, 32, of Atlanta, Ga., had also entered a plea of guilty and were both previously sentenced to 60 months in prison.

One remaining defendant, Brayan Vargas (no relation to Tito Vargas), 19, of Bogota, Colombia, is currently a fugitive in the case and a warrant remains outstanding for his arrest. A photograph is attached. Crime Stoppers will pay up to $5,000 for any information called in to 713-222-TIPS (8477) or submitted online at www.crime-stoppers.org  that leads to the location and arrest of Brayan Vargas. Tips can also be sent by text message. Text TIP610 plus your tip to CRIMES (274637). All tipsters remain anonymous.

On Aug. 24, 2011, the defendants traveled in several cars and followed a traveling jeweler from New York he visited several jewelry stores to show his merchandise. At one point, Gutierrez even followed him into an electronics store as he shopped.

The next day, the five robbers waited for him at the location where he had left his merchandise at the end of the previous evening as he came to retrieve his items. They met with others and followed him again from Houston to College Station in at least four cars. Eventually, in College Station, they robbed him of approximately $200,000 worth of jewelry at gunpoint.

Immediately thereafter, Gutierrez and Carvajal were involved in a traffic accident, but fled. They were soon arrested for fleeing the scene of an accident. Inside the car, officers found broken glass consistent with the recent broken window from the victim’s car along with other evidence tying them to the robbery.

Brayan Vargas and Tito Vargas were later arrested at apartment complex in Houston for their role in the College Station robbery based upon evidence developed after the robbery. At the time of their arrest, agents located a large sum of U.S. currency, a diamond tester and jewelry taken during the College Station robbery. They also discovered jewelry taken during a robbery in Shreveport, La.

Luis Flores was arrested for his role in the College Station robbery while serving time in Texas Department of Corrections for an attempted theft of a jeweler that occurred on April 21, 2011. At the time of the College Station robbery, he was out on bond on that charge.

Brayan Vargas, who was initially arrested on related state charges, had been released on bond on those charges but fled. He is currently a fugitive for both the state warrant and the federal warrant for robbing a jeweler traveling in interstate commerce. 

This prosecution is a result of the collaborative work of members of the FBI, police departments in College Station and Navasota, Brazos County District Attorney’s Office and the U.S. Attorney’s Office. Assistant U.S. Attorneys Kebharu H. Smith and Joe Magliolo are prosecuting the case.

GALVESTON, Texas - Christopher Castillo, 33, of Monte Alto, has been handed a federal prison sentence after having been convicted of one count of bribery, United States Attorney Kenneth Magidson announced today. Castillo entered a plea of guilty before U.S. Magistrate Judge John Froeschner on Aug. 22, 2012, which was later accepted by U.S. District Judge Gregg Costa.

Today, Judge Costa considered the evidence and sentenced Castillo to a term of 48 months in federal prison to be followed by three years of supervised release. Castillo was also ordered to pay a $50,000 fine. Calling bribery a serious offense, Judge Costa noted commented that Castillo was living the American Dream as an engineer with a master’s degree, but that was not enough for him. At the hearing, Castillo offered an apology for his actions.

“The actions of this individual are not in line with the Army's Core Values nor are they reflective of the service the Corps provides our nation,” said Col. Christopher Sallese, district commander of the U.S. Army Corp of Engineers (USACE) Galveston District. “As public servants, we are committed to managing taxpayers' dollars while maintaining the publics' trust and we will continue to work with the Criminal Investigation Command and Department of Justice to ensure that employees and contractors who commit fraud are held accountable.”

Castillo was a civil engineer with USACE under the direction of the Galveston office. At the time of his plea, he admitted that as part of his official duty, he supervised projects in the Southern District of Texas and the performance of government contractors. One such contractor had been involved in numerous construction jobs for the U.S. government in 2010, 2011 and 2012, including an emergency power cooling building for the U.S. Border Patrol located in Hidalgo County. As supervisor of that project, Castillo could terminate work if he believed it was unfavorable or he could unfavorably report to USACE thereby preventing the company from getting future contracts. 

A USACID agent obtained information that Castillo solicited and received a new concrete driveway from the owner of that company in late 2010 while it was engaged in contract services for the U.S. government. Specifically, Castillo asked that his driveway be paved and that the owner must pay for the work. The owner was afraid to refuse because Castillo could prevent him from getting government contracts.

The owner paid another person to install the driveway, paid the expenses and supplied much of the material. The project had an estimated value of $80,000 and was completed on or about Jan. 14, 2012.

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

The case was investigated by United States Army Criminal Investigation Command's USACID and is being prosecuted by Assistant United States Attorney James McAlister.

HOUSTON – One of the leaders of an organization that laundered more than $20 million through “shell” business bank accounts has just entered a guilty plea in federal court in Houston, United States Attorney Kenneth Magidson announced today along with Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. With the plea of Enrique Morales, 42, of Houston and Guadalajara, Mexico, five people taken into custody in relation to the scheme have now been convicted.

Morales pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business before U.S. District Judge Lee H. Rosenthal this morning.  

Willie Whitehurst, Fulton Smith and Anthony Foster, all from Houston and money couriers for the organization, also pleaded guilty to the same two charges. Smith, 40, entered a plea yesterday while Whitehurst, 44, and Foster, 47, pleaded guilty last month. An office manager for the organization - Sarah Combs, 48, of Dickinson - previously pleaded guilty to conspiracy to operate an unlicensed money transmitting business.

In August 2012, a federal grand jury in Houston indicted the five defendants for their parts in a large “Black Market Peso Exchange” scheme. From October 2009 to September 2011, the defendants placed U.S. currency gained through the sale of drugs in U.S. cities into bank accounts held in the name of the organization’s “shell” companies. The money was then transferred to different accounts in the U.S. and in Mexico. In exchange, pesos were transferred back to accounts owned by the organization’s clients.   

Foster, Whitehurst and Combs are scheduled for sentencing on May 9, 2013, while Smith and Morales are set for May 29, 2013. For the money laundering conspiracy, Morales, Whitehurst, Foster and Smith face up to 20 years in federal prison and a $500,000 fine, or twice the value of the property involved in the offense, whichever is greater. All five face up to five years in federal prison and a fine of $250,000 for conspiracy to operate an unlicensed money transmitting business.

The case was investigated by the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Ted Imperato of the Southern District of Texas and Trial Attorney Keith Liddle of the Justice Department’s Money Laundering and Bank Integrity Unit are prosecuting the case.

HOUSTON – Brandon Lee Scott, U.S. Coast Guard Petty Officer Second Class, of Dickinson, has entered a plea of guilty to theft of government property, United States Attorney Kenneth Magidson announced today.

At the hearing, Scott, 28, acknowledged the United States could prove he utilized a government issued credit card to buy nearly $3000 worth of electronics for his personal benefit. On June 30, 2011, Scott admitted he used a J.P. Morgan Chase purchase card to buy a 55-inch Samsung High Definition television set and two 10-inch Android WiFi gTablets having a total value of $2,659.97.
 
U.S. District Judge Vanessa D. Gilmore, who accepted the guilty plea, has set sentencing for April 29, 2013, at which time faces up to 10 years in federal prison and a possible $250,000 fine. Scott was permitted to remain on bond pending that hearing.

The charge against Scott resulting in today’s guilty plea was the result of an investigation conducted by the U.S. Coast Guard Investigative Service and the Department of Homeland Security-Office of Inspector General. Assistant United States Attorney Daniel C. Rodriguez is prosecuting the case.

HOUSTON - Steven Thomas Stancil, 52, of Magnolia, has landed in federal prison following his conviction for attempted theft of trade secrets, United States Attorney Kenneth Magidson announced today. Stancil entered a plea of guilty Nov. 8, 2012.

Today, U.S. District Judge Sim Lake, who accepted the plea, handed Stancil a 10-month sentence – five months to be served in federal prison and the remaining to be served on house arrest. He will be required to serve a term of three years of supervised release following completion of the prison term and to complete 200 hours of community service.

Stancil was employed by Mogas Industries Inc. in Houston as a cost analyst from January 2006 until April 2010. Mogas is a manufacturer of specialty valves for the oil and gas industry and sells its products throughout the United States and internationally. In January 2010, Stancil started downloading proprietary company information onto his company computer. He later transferred this information without authorization onto his personal computer at his home in Magnolia.

In March 2010, Stancil purported to be a Mogas co-worker and sent emails to approximately eight Mogas competitors offering to sell proprietary Mogas information. The emails asked what it would be worth to have the entire Mogas database which would include all drawings and designs, customer contacts, vendors, pricing and more. Stancil then asked them to respond to work out the arrangements.

Later in March 2010, Stancil emailed a Mogas competitor and offered to sell Mogas’s “customers, costing, engineering, marketing, drawings, and so on” for $50,000 to $100,000. He stated that the information he would provide would help the Mogas competitor to expand their business and “potentially bring in extremely large amounts of income . . .” Stancil cautioned the Mogas competitor that the negotiations had to be handled carefully because Stancil had “a lot to lose if this comes out in any way.”

In September 2010, a federal search warrant on Stancils’s email account revealed he had emailed a Mogas competitor 20 files that contained images of schematic drawings and measurements of valve parts manufactured by Mogas. The drawings were altered to replace the icon of Mogas with the icon of another company.

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

The operation was a combined effort conducted by the FBI and the Houston Police Department. The case was prosecuted by Assistant United States Attorney Mark McIntyre.

HOUSTON – Jose Manuel Zuniga, 42, a Mexican National residing in Houston, has been sent to federal prison for his conviction on one count of conspiracy to possess with the intent to distribute cocaine, United States Attorney Kenneth Magidson announced today. Zuniga entered a plea of guilty on June 17, 2011.

Today, U.S. District Judge Ewing Werlein Jr. handed Zuniga a total sentence of 292 months in federal prison to be followed by a five-year-term of supervised release. Zuniga’s sentence was enhanced after he was deemed to be a supervisor of criminal activity that involved five or more participants.

From January 2006 to November 2010, Zuniga worked for an organization based in Mexico that was responsible for the transportation and distribution of cocaine into the United States and the return of the proceeds to Mexico. He relied on his co-defendants for the success of his enterprise and was responsible for arranging drivers in the Houston area to transport cocaine to different parts of the United States. Once the drugs arrived in Houston, his drivers would distribute the cocaine throughout Georgia, Arkansas, Alabama and Missouri.

Zuniga was responsible for coordinating and paying individuals to pick up, transport and distribute cocaine while acting under the direction of a co-conspirator. In addition to paying individuals to pick up, transport and distribute drugs, Zuniga would arrange for drivers to transport the drug proceeds, derived from his drug trafficking, back to Mexico. During the period of the conspiracy, Zuniga was responsible for distributing more than 260 kilograms of the schedule II controlled substance cocaine.

To date, four others have been convicted in relation to this case, with sentences thus far ranging from 70 to 120 months.

Zuniga has been in federal custody without bond since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. 

This case was part of the Organized Crime Drug Enforcement Task Force and was investigated by the FBI and Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Stuart A. Burns is prosecuting the case.

HOUSTON - Miranda Gore has been ordered to prison for willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of IRS-Criminal Investigation (IRS-CI). Gore pleaded guilty Thursday, Oct. 25, 2012.

Today, U.S. District Judge Keith Ellison, who accepted the guilty plea, handed Gore a sentence of 30 months which will be followed by a year of supervised release. Gore agreed at the time of her plea that the relevant conduct for purposes of sentencing in this case is $280,150, which includes the tax loss on the false income tax returns she prepared and the tax loss to the United States on her own 2008 and 2009 U.S. Individual Income Tax Returns. Today, Judge Ellison ordered she pay that amount in restitution.

According to the plea agreement entered in the record of the case, Gore admitted that on the income tax return in question, she willfully claimed a false loss from an alleged interior design business that the taxpayer never had. Gore also admitted she willfully placed on the return a false claim for a First Time Homebuyer’s Credit that the taxpayer was not entitled to claim. Gore admitted that the tax loss to the United States on the false return was $9,352.

Gore further acknowledged she gave the taxpayer client a purported copy of the tax return she prepared differing from the return Gore electronically filed for the taxpayer with the IRS. The return filed with the IRS claimed a tax refund of $9,554, whereas the one given the taxpayer claimed a tax refund of only $2,054. Gore admitted she arranged for the tax refund claimed from the IRS to be put on a cash card. Gore then gave the taxpayer a check for $4,180 for the refund and kept the remainder of the funds on the cash card for herself.

Gore 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.

HOUSTON – A Mexican woman who was smuggling nearly two kilograms of heroin in her luggage as she arrived at George Bush-Intercontinental Airport (IAH) from Ecuador has entered a plea of guilty, United States Attorney Kenneth Magidson announced today.

Yessica Chanel Cabanillas-Torres, 21, of Sonora, Mexico, pleaded guilty to conspiracy to possess with the intent to distribute more than a kilogram of heroin just moments ago before United States District Judge Gray H. Miller.

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

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

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

Judge Miller has set for sentencing for May 17, 2013, at 11:00 a.m., at which time she faces a minimum of 10 years and up to life imprisonment and a possible $10 million fine. She will remain in custody pending that hearing.

This case was investigated by Homeland Security Investigations and CBP. Assistant United States Attorney Arthur R. Jones is prosecuting the case.

McALLEN, Texas – A federal jury in McAllen has convicted Erick Ochoa-Rodriguez, 19, of Pharr, on two counts of conspiring to possess and actually possessing marijuana with the intent to distribute the controlled substance to another, United States Attorney Kenneth Magidson announced today. The verdicts were returned earlier today after nearly three days of trial.

Ochoa-Rodriguez was charged in an indictment returned on Nov. 13, 2012. During the trial, the government presented photos, maps and witness testimony illustrating his attempt to receive 175 kilograms of marijuana from unknown individuals carrying the drugs from the border.

On Oct. 29, 2012, Border Patrol agents encountered Ochoa-Rodriguez as he drove his vehicle to a planned rendezvous near a levee within two miles of the border with seven individuals who had carried marijuana bundles from the Rio Grande River. He immediately fled, first in his vehicle and then on foot into a densely forested area. Agents ultimately located him as he was lying in the fetal position within dense overgrowth through the use of a canine unit, trackers and aircraft. 

The government also proved this was not the defendant’s first encounter with law enforcement. Additional evidence demonstrated that Ochoa-Rodriguez received 125 kilograms of marijuana from undercover federal agents on June 11, 2012, before successfully fleeing law enforcement on that occasion. The prosecution further introduced evidence obtained from his Facebook account wherein Ochoa-Rodriguez acknowledged coordinating the trafficking of large quantities of marijuana from Mexico into the United States. Further investigation revealed his growing ties with Mexican Drug Cartels and his involvement in cocaine trafficking, illegal possession of firearms, money laundering and other cartel-related crimes. 

Ochoa-Rodriguez is scheduled to be sentenced on April 24, 2013, and faces up to 40 years imprisonment.

This case is being investigated by the Drug Enforcement Administration, Border Patrol and Homeland Security Investigations. Assistant United States Attorney Grady J. Leupold is prosecuting the case.

HOUSTON - Brian Anthony Bjork, 43, of Missouri City, has been charged in an one-count Information with running a Ponzi scheme that defrauded nearly a dozen investors of more than $1 million, United States Attorney Kenneth Magidson announced today. Bjork was formerly employed by deceased Friendswood investment advisor Joel David Salinas.

The complaint was filed just moments ago and Bjork will be ordered to report for his initial appearance sometime in the near future.

Bjork was a registered investment advisor employed at companies owned and operated by Salinas, including J. David Financial Group and Select Asset Management. Bjork also served as treasurer of a non-profit organization known as the Houston Athletics Foundation (HAF).

The criminal information alleges that during his employment at those companies, and while serving as treasurer of HAF, Bjork orchestrated an investment fraud scheme whereby he would he would solicit and obtain funds from individuals and entities under the false pretense that he would either invest those funds in Salinas’ pawn shops or use those funds to purchase corporate bonds being offered by Salinas. In truth and in fact, according to the complaint, Bjork kept those funds and used them to support his own lifestyle and to pay prior investors. In order to accomplish this fraud, Bjork established a Bank of America account under the name Brian A. Bjork dba: J David Financial Group, an account for which he was the sole signatory. Bjork then perpetrated his fraud by largely preying upon current and former family members and utilizing his position as the treasurer of HAF to fraudulently obtain funds and convert them for his own use.

Although the Securities and Exchange Commission (SEC) has civilly charged J. David Financial, SAM, Salinas’s Estate, Bjork and others (Case No. 11-CV-2830) with Salinas’ massive bogus bond scam, the criminal investigation alleges Bjork’s culpability for this “scam within a scam” whereby Bjork allegedly defrauded a subset of the J. David Financial investors, including HAF, of nearly $1.5 million. 

The investigation leading to the charges in this case was conducted by the United States Secret Service and the FBI. Assistant United States Attorney Jason Varnado is prosecuting this case.

McALLEN, Texas – Armando Ruben Aleman, 28, of Weslaco, has been indicted by a federal grand jury for allegedly stealing more than  $190,000 from former employer BBVA Compass Bank in Mission, United States Attorney Kenneth Magidson announced today. The indictment was retuned late yesterday.

A criminal complaint was filed Jan. 10 in federal court in McAllen. It alleged that during more than half of last year, while Aleman was employed at BBVA Compass Bank, he emptied a deceased client’s account before the executor of the client’s will could retrieve the funds. The funds allegedly totaled more than $190,000.

The charges allege Aleman forged checks in the deceased client’s name. Then, Aleman allegedly transferred the funds into an account he opened at Chase Bank using a stolen identity from another person. Aleman managed to spend and transfer to himself more than  $70,000 from the fraudulently-opened Chase account before his scheme was discovered and the bank froze the account, according to allegations.

Aleman turned himself in to federal authorities on Jan. 14, and he was later released on bond with conditions that he not work for or conduct business with a financial institution or work in any capacity where he would have access to customers’ bank accounts, credit card numbers or other personal identifying information. He will appear again in federal court on the indictment in the near future.

If convicted, Aleman could face up to 30 years in prison as well as a $1 million possible fine.

This case was investigated by the Secret Service with the assistance of the FBI. Assistant U.S. Attorney Christopher Sully is prosecuting the case.

CORPUS CHRISTI, Texas – The United States has seized a bank account located in Bermuda alleged to have been owned by former State of Coahuila, Mexico, Secretary of Finance Hector Javier Villareal Hernandez, United States Attorney Kenneth Magidson announced today.

The account, which is held in Bermuda at Sun Secured Advantage and N.T. Butterfield and Son Limited, contained $2,275,544.41 as of Jan. 4, 2013. The government alleged, as its basis for forfeiture, that the funds in the account were involved in a money laundering transaction, that the property constitutes or was derived from proceeds traceable to offenses including bribery of a public official, or the misappropriation, theft or embezzlement of public funds by or for the benefit of a public official.

The United States alleges in the civil forfeiture complaint filed just a short time ago that the account holder of the Bermuda account is Hernandez. He allegedly transferred stolen monies from the State of Coahuila into an account in Brownsville and later to the Bermuda account, according to the complaint.

In approximately December 2005, Hernandez was appointed by then Governor of Coahuila Humberto Moreira to the position of Under Secretary of Program and Budget for Coahuila. In July 2008, Hernandez was appointed by the same governor to the position of Secretary of Finance for Coahuila. On Aug. 19, 2011, Hernandez resigned that position and became a subject of investigation by the government of Mexico. On Oct. 28, 2011, a local judge from Coahuila charged Hernandez with forging state documents to obtain fraudulent loans for several million pesos between 2008 and 2011. On Oct. 29, 2011, Hernandez was arrested and released on bond. He later fled and remains a fugitive on those charges.

According to the civil complaint, in 2011, Mexican law enforcement officials initiated an investigation involving fraudulent loans obtained from Mexican banks by Hernandez while he held the position of Secretary of Finance. The investigation includes three fraudulent loans from two different Mexican banks from July 2010 to March 2011 totaling more than $3 billion Mexican Pesos ($246 million U.S. dollars based on exchange rates on the dates of the loans). On Feb. 3 and March 8, 2012, Mexican government authorities filed false loan charges and issued arrest warrants for Hernandez’s involvement in the false loans with two Mexican banks. The charges allege Hernandez and other co-conspirators acquired loans by providing false information to Mexican banks. The false information involved the use of false registry stamps or previously approved registry stamps used on the false loan contracts. 

The conspiracy is alleged in the complaint to have begun when Hernandez requested a loan on behalf of the State of Coahuila. He then drafted and submitted a false loan contract for approval by the federal Treasury Department. Hernandez conspired to falsify the approval of the submitted loan contract. His alleged co-conspirators, who worked at the federal Treasury Department, placed a fraudulent federal registry stamp or a previously approved registry stamp on the loan contract to make it appear that the loan contract had been approved. After the loan contract obtained the false registry stamp or previously approved registry stamp and received "approval," the contract was submitted to a Mexican federal bank for issuance of a loan to the State of Coahuila. Once the loan proceeds were obtained, they were available for use by the State of Coahuila.

Hernandez had full authority over the disposition of the loan proceeds for the State of Coahuila. The Mexican bank providing the loan proceeds required the State of Coahuila to open a bank account at the specific bank. In order for the State of Coahuila to repay these loans, they requested money from the Mexican federal government. After the State of Coahuila received monies from the Mexican federal government, they did repay the loans to the Mexican banks.

Hernandez opened an offshore investment account in Bermuda during this time period. Since April 2009, it is estimated that Hernandez and his associates received more than $35 million through foreign exchange transactions and cross border wires and subsequently purchased numerous real properties in San Antonio, Brownsville and South Padre Island with the illegal proceeds. 

The complaint seeks the forfeiture of $2,275,544.41 on deposit in the Bermuda account.

The Organized Crime Drug Enforcement Task Force investigation leading to the civil forfeiture complaint was conducted in San Antonio, Brownsville, Houston and Corpus Christi. Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration, Homeland Security Investigations and the Texas Attorney General’s Office conducted the investigation. As part of the investigation, the United States sought the assistance of the  Prosecutor General of the Republic of Mexico via the Mutual Legal Assistance Treaty in effect between the United States and Mexico.

This case is being prosecuted in the Southern District of Texas by Assistant United States Attorney Julie K. Hampton.

GALVESTON, Texas – Whitney Rohacek, 26, of Crystal Beach, has been was arrested following the return of an indictment charging her with fraud in connection with a major disaster and aggravated identity theft, United States Attorney Kenneth Magidson announced today.  

Rohacek was arrested this afternoon without incident. She made her appearance just moments ago before U.S. Magistrate Judge John Froeschner, at which time she was permitted to be released upon posting $10,000 bond.  

The four-count sealed indictment was returned Jan. 30, 2013, and unsealed upon her arrest today. The indictment alleges she submitted a false bill of sale for a travel trailer that contained a forged signature, as well as fraudulent title documents and receipts in order to obtain disaster assistance from the Federal Emergency Management Agency in the wake of Hurricane Ike.

If convicted of fraud in connection with a major disaster or emergency, Rohacek faces a maximum punishment of up to 30 years in prison, as well as a possible $250,000 fine. The aggravated identity theft charge also carries another possible fine of $250,000 and a two-year-term of imprisonment, upon conviction, which must be served consecutively to any other prison term imposed.

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

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

CORPUS CHRISTI, Texas – A man accused of robbing a Texas Champion Bank through use of force and intimidation has been convicted of bank robbery, United States Attorney Kenneth Magidson announced today. Nicholas Vernon Tolmie, 52, of Corpus Christi, entered a plea just a short time ago before Senior U.S. District Judge John D. Rainey. 

Tolmie was indicted in January 2013. As part of his plea today, Tolmie admitted he robbed the Texas Champion Bank located on Ayers Street in Corpus Christi on July 11, 2012, and again on Nov. 19, 2012. In both robberies, Tolmie presented threatening notes to bank tellers demanding money.       

Tolmie was arrested on Nov. 19, 2012, after Corpus Christi Police officers responded to the bank to investigate the robbery. Officers searched the area and found discarded clothes in an abandoned building matching the clothes worn during the robbery. 

The investigation revealed that a man had recently fled the building and entered a nearby restaurant. Officers located Tolmie in that restaurant and he was subsequently detained. Tolmie had the cash from the robbery concealed in his boots and admitted it came from the bank robbery. Tolmie was later identified by an eyewitness and fingerprint evidence as having also committed the July 11, 2012, robbery. Tolmie later admitted he committed both bank robberies.

Tolmie has been in custody without a bond since his arrest on Nov. 19, 2012. Judge Rainey has set sentencing for May 20, 2013, at 10:30 a.m., at which time Tolmie faces up to 20 years imprisonment as well as a possible $250,000 fine.

This case was investigated by the FBI and prosecuted by Assistant United States Attorney Sam Brown IV.  

CORPUS CHRISTI, Texas - Michael "Mickey" Pena, 45, of Kingsville, has been found guilty of conspiracy to possess with the intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. The federal jury returned their verdict just moments ago in Corpus Christi after less than one day of trial and only 30 minutes of deliberation.

During trial, the government proved Pena participated in a drug trafficking organization that transported large amounts of marijuana concealed in the hulls of altered shallow-bottom fishing boats. The drugs were transported via the intra-coastal waterway from Port Mansfield to Corpus Christi in an effort to circumvent Border Patrol checkpoints in Falfurrias and Sarita. Testimony revealed that in early 2012, organization members deconstructed a 21-foot Dargel Scout fishing boat over the course of 20 days. They then loaded the hull of the vessel with more than 1,100 pounds of marijuana and rebuilt the deck of the boat. The boat was  then launched in Port Mansfield and Co-defendant Rogelio Mendoza drove it north. Marine interdiction agents with Customs and Border Protection intercepted the vessel just south of Corpus Christi. 

Subsequent investigation revealed that Pena, who arrived at marker 37 with an empty boat trailer shortly after the boat was intercepted, had registered the vessel in his name two weeks earlier. Certified state documents showed that the previous owner of both the boat and the empty trailer were members of the organization. Agents also testified that they had conducted surveillance of organization members scouting boat ramps near marker 37 about six weeks before the seizure and then immediately drove to Pena’s Kingsville residence. 
  
Mendoza, 37, and five other members of the conspiracy have previously pleaded guilty before U.S. district judges in Corpus Christi and have been or are awaiting sentencing. Those include Alberto Lopez aka Alberto Lopez-Reyna, 39, Lombardo Zarate, 49, Glen Dial, 56, Luz Ramirez, 25, and Hector Perez-Gonzalez, 39.   

Senior U.S. District Judge Janis Graham Jack, who presided over the trial, has set sentencing for April 17, 2013, at which time he will face a minimum of five and up to 40 years in prison as well as a possible $5 million fine and a substantial money judgment. Pena is in custody where he will remain pending sentencing.

The case was investigated by Homeland Security Investigations with the assistance of the Kingsville Narcotics Task Force. The case was prosecuted by Assistant United States Attorney Jeffrey D. Preston.

HOUSTON – Xin Gu, 29, of Dalian, China, has been sentenced to prison following his convictions of conspiracy to commit bank fraud and aggravated identity theft, United States Attorney Kenneth Magidson announced today. Gu entered a plea of guilty on Tuesday, July 10, 2012, after hearing a day of trial testimony in federal court in Houston. 

Today, U.S. District Judge Gray H. Miller handed Gu 30 months for the bank fraud conviction and an additional 24 months on the aggravated identity theft which must be served consecutively for a total sentence of 54 months in federal prison. Gu is expected to face deportation proceedings following his release from prison.

On Feb. 3, 2012, Gu was arrested after he posed as someone else in a Chase bank in Houston. He had presented a fraudulent passport with his picture and someone else’s information as well as other fraudulent identification documents bearing the victim’s name and identifying information. At the time of his arrest, Gu also had other receipts and withdrawal slips for other withdrawals made on the victim’s account that same day. 

Seven days prior to that arrest, a fictional authorized user had been added to the victim’s business and personal accounts at a Chase Bank branch in New York without the victim’s knowledge by a man posing as the victim. Subsequently, another woman - posing as that fictional account user - then also began making withdraws on the victim’s account in Houston.

Gu and the woman posing as the victim and fictional authorized user, respectively, made withdrawals from the victim’s business and personal accounts totaling approximately $980,000 in a seven-day period. One of those purchases included a $236,000 Mercedes Benz purchased with a cashier’s check. Items found in the Mercedes allowed Secret Service agents to determine Gu knew the woman posing as the fictional account user.

The investigation into the conspiracy is ongoing.

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

The charges brought against Gu were the result of a an investigation by the United States Secret Service. This case was prosecuted by Assistant United States Attorneys John Jocher and Andrew Leuchtmann.

BROWNSVILLE, Texas – Five family members have been charged in an eight-count indictment alleging a tax fraud scheme that involved filing false tax returns on behalf of deceased individuals, United States Attorney Kenneth Magidson announced today along with Internal revenue Service-Criminal Investigation Special Agent in Charge Lucy Cruz.

The indictment alleges Judy Lynn McCune recruited members of her family, including her mother Loretta Ann McCune, sister Rania Ann Sanchez and sons Robert Gutierrez and Edward Gutierrez in the scheme to prepare federal tax returns and cash United States Treasury refund checks in the name of deceased individuals.

Just moments ago, Judy Lynn McCune, Sanchez and Edward Gutierrez turned themselves in to federal authorities and are expected to appear before U.S. Magistrate Judge Felix Recio today at 10:00 a.m. Loretta Ann McCune is expected to also turn herself in sometime in the near future. A warrant remains outstanding for Robert Gutierrez.

“Investigating identity theft and refund fraud is a priority for IRS-CI,” said Cruz. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. These indictments should serve as a strong warning to those who are considering similar conduct. IRS-CI is serious about investigating these crimes and holding to account those who would defraud the government.” 

Judy Lynn McCune allegedly recruited her mother to prepare and file the false returns, while her sister and sons cashed refund checks issued in the name of deceased individuals, according to the indictment. The conspiracy allegedly involved obtaining Social Security numbers and dates of birth for deceased individuals through the Internet and then filing both paper and electronic federal income tax returns using the identifiers of these deceased individuals. The refunds were allegedly directly deposited in the personal bank account or mailed to the personal addresses of the accused. The indictment alleges the total scheme consisted of approximately 340 false claims totaling $763,124.

Loretta Ann McCune, Robert Gutierrez and Edward Gutierrez are charged with filing false, fictitious or fraudulent claims. The indictment further charges Judy Lynn McCune and Loretta Ann McCune with aggravated identity theft for their unlawful use of the deceased individuals name and Social Security numbers as well as theft of government money in connection with the falsely filed returns.

If convicted of the scheme to prepare federal tax returns and cash the refund checks in the name of deceased persons, all face up to 10 years in prison and a possible $250,000 fine. Judy Lynn and Loretta Ann McCune also face the same punishment if they are convicted of theft of government money. Loretta Ann McCune, Robert Gutierrez and Edward Gutierrez face a possible sentence of five years in prison if convicted of filing false, fictitious or fraudulent claims. If convicted of aggravated identity theft, Judy Lynn McCune and Loretta Ann McCune will receive an additional mandatory two-year prison term that must be served consecutive to any other prison term imposed.

IRS investigated and Assistant United States Attorney Karen Betancourt 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.

McALLEN, Texas – Mission resident Jose Alaniz-Allen, 22, has entered a plea of guilty to one count of receipt of child pornography, United States Attorney Kenneth Magidson announced today. 

Alaniz-Allen came to the attention of law enforcement following an investigation which began Sept. 14, 2012, into persons using the Internet to traffic in child pornography. A Homeland Security Investigations (HSI) agent was able to locate and identify Alaniz-Allen as the owner of a computer as offering to participate in the distribution of child pornography movies through a peer-to-peer network .

On Nov. 29, 2012, a search warrant was executed at his Mission residence and a computer and various external storage media devices were seized. The forensic examination revealed 23 movies of clearly young children engaged in sexually explicit conduct. The images included children under the age of 12 engaged in bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.

Alaniz-Allen admitted he downloaded child pornography from the Internet thereby receiving and possessing the child pornography found on his computer.

U.S. District Judge Micaela Alvarez, who accepted the guilty plea, has set sentencing for May 16, 2013. At that time, Alaniz-Allen faces up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
           
This case, prosecuted by Assistant United States Attorney Kimberly Leo and Juan Villescas and investigated by Homeland Security Investigations, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

HOUSTON – Demi Mishel Muniz, of Los Angeles, Calif., has been convicted of conspiracy to transport and harbor aliens resulting in the death of a 38-year-old illegal alien from Mexico, U.S. Attorney Kenneth Magidson announced today. The Houston federal jury returned its verdict just a short time ago following a three-day trial before U.S. District Judge Lee H. Rosenthal.

During trial, testimony revealed that on Aug. 18, 2010, the Oldham County Sheriff’s Office was notified there was a body on the side of Interstate 40 outside of Vega, approximately 20 miles west of Amarillo. The identity of the deceased was discovered following receipt of an inquiry from the alien’s son.

The deceased was in the process of being smuggled from Mexico into the United States, being transported from Houston to Los Angeles, Calif. During the course of the journey, Muniz contacted the wife of the deceased and provided a bank account number for the deposit of $650 in smuggling fees. Subsequently, Muniz contacted the wife again and informed her he was ill. The wife told Muniz her husband was a diabetic and required insulin and requested he be taken to a hospital. Muniz refused and stated she had other people in the van and had to keep moving. A few hours later, the wife was called and told not to deposit the money into the bank account because her husband had been “left behind.”

An autopsy on the body of the deceased determined he had died of a combination of pneumonia and diabetes. Testimony also revealed that had the deceased received proper and timely medical care, he likely would have survived.

The bank accounts of Muniz were extensively reviewed and it was determined that approximately $84,000 in the account was derived from unknown sources. Agents determined many of the deposits were from various other states and that this was a characteristic consistent with alien smuggling operations.

A co-defendant testified Muniz and others were heavily involved in alien smuggling and that during the course of the trip Muniz refused to provide help to the deceased.

Although Muniz previously said she was not involved in the smuggling venture and was not in the van with the deceased, Muniz elected to testify in the trial and admitted to being in the van, but said she did not know the aliens were illegal. She further denied having talked to the widow and also denied being told the deceased was diabetic and required insulin. The jury disagreed and found her guilty.

Sentencing is scheduled for May 14, 2013, at which time she faces up to life in prison and a maximum fine of $250,000.

The case was investigated by the Oldham County Sheriff’s Office, Texas Rangers, Texas Department of Public Safety and Homeland Security Investigations. Assistant United States Attorneys Julie Searle and Douglas Davis prosecuted the case.

BROWNSVILLE, Texas – Armando Duenez has entered a plea of guilty to conspiracy to export firearms and failure to appear, United States Attorney Kenneth Magidson announced today. Duenez, 31, who entered the plea late yesterday afternoon, was employed as a police officer with the Rio Hondo Police Department during the offense. 

The former officer entered into an agreement with others to export weapons from the United States to Mexico. Duenez admitted to working with Raymond Martinez, formerly a member of the Palm Valley Police Department, to buy firearms and sell them for a profit to individuals who intended to smuggle them to Mexico. Duenez admitted to purchasing more than 15 semi-automatic rifles that were later sold in Mexico. The rifles were all capable of accepting high capacity magazines. The investigation began when weapons recovered in Mexico were traced back to him. Martinez was also convicted of dealing in firearms without a license and later sentenced to federal prison.

Duenez was arrested for the firearms offense in July 2008. After being release on bond, Duenez failed to appear for his arraignment having fled to Mexico. Duenez remained in Mexico until he surrendered to United States Marshals Service in December 2012.

U.S. District Judge Hilda G. Tagle, who accepted the guilty plea today, has set sentencing for May 1, 2013. At that time he faces up to five years in federal prison on each of the charges as well as a possible $250,000 fine. He will remain in custody pending that hearing.                                                                   
 
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Bill Hagen.

HOUSTON - Jimmy Wayne Sissom, 46, has been ordered to federal prison following his conviction on one count of bankruptcy fraud, United States Attorney Kenneth Magidson announced today. Sissom, of Bastrop, was the owner of Dealers Management Group Inc., a used car company located in Houston and a partner in F&S Storage Company in Katy. He pleaded guilty to the charge, Sept. 27, 2012.

Today, U.S. District Judge Sim Lake, who accepted the guilty plea, handed Sissom a 15-month sentence to be followed by three years of supervised release.

Sissom filed a Chapter 7 bankruptcy petition in May 2006. During the course of the bankruptcy proceeding, Sissom stated to the trustee that he had listed all of his assets in his estate. However, he failed to disclose that approximately two weeks prior to the bankruptcy filing, his wife had purchased a home valued in excess of $300,000 which was located in Bastrop.

Sissom admitted at the time of his plea that he made a false statement to the trustee about his assets.

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

FBI investigated and Assistant United States Attorney Quincy L. Ollison prosecuted the case with the assistance of the United States Trustee’s Office.

McALLEN, Texas – Eduardo Alaniz, 24, and Sebastian Mendez, 30, have been charged with conspiring to falsify records at Bank of America in Mission, where they were formerly employed as tellers, U.S. Attorney Kenneth Magidson announced today.

Both Alaniz and Mendez turned themselves in to federal authorities today.

The criminal complaint alleges that more than $94,000 was discovered missing from the bank. The ensuing investigation revealed Alaniz and Mendez allegedly conspired together to repeatedly falsify bank records over the course of several days in April of last year, effectively concealing the missing money from auditors. On one occasion, records showed $36,953.26 in the teller drawer, when the actual amount was $2,526.60.

At a hearing today, U.S. Magistrate Judge Peter Ormsby formally advised both defendants of the charges and released them on bond pending trial with the one of the conditions they not work at a financial institution during the pendency of the case.

If convicted, each defendant could face a term of imprisonment of up to five years in federal prison and a possible $250,000 fine.

This case was investigated by the Secret Service with the assistance of Bank of America. Assistant U.S. Attorney Christopher Sully is prosecuting the case.

CORPUS CHRISTI, Texas – Alberto Lopez, aka Alberto Lopez-Reyna, 39, of Roma, has entered a plea of guilty to one count of conspiracy to possess with the intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Lopez entered into a written plea agreement before Senior U.S. District Judge Janis Graham Jack just a short time ago in Corpus Christi.

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

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

Members of the conspiracy who served as drivers include Lombardo Zarate, 49, Rogelio Mendoza, 37, Glen Dial 56, Luz Ramirez, 25, and Hector Perez-Gonzales, 39, all of whom have previously pleaded guilty before U.S. District Judges in Corpus Christi and have either been sentenced to terms of imprisonment at the Bureau of Prisons or await sentencing.
  
Lopez faces a minimum of five and up to 40 years in prison as well as a possible $5 million fine and a substantial money judgment. Sentencing will be before Senior U.S. District Judge Janis Graham Jack on a date yet to be determined.  

This case is the result of a two-year investigation led by Homeland Security Investigations with the assistance of the Kingsville Narcotics Task force. Assistant United States Attorney Jeffrey D. Preston is prosecuting the case.

McALLEN, Texas - Ricardo Hinojosa, of Roma, has been sentenced to 151 months in federal prison following his conviction of possession with intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. 

On Sept. 1, 2011, Hinojosa and others agreed to transport approximately 211 kilograms of marijuana from a location near the Rio Grande River in Starr County to another location for further distribution. The others included Javier Gonzalez, Ramiro Reyes, Eric Garza, Rogelio Vela and Jose Ibarra. As part of an additional scheme and before the marijuana transportation took place, Hinojosa and others agreed to steal the load of marijuana from the actual owner. They would steal the marijuana and have the actual marijuana owner believe the marijuana was seized by law enforcement.

Hinojosa, Reyes, Vela Gonzales and Garza were sentenced to respective terms of prison of 151, 63, 60, 32 and 24 months. Ibarra was previously sentenced to 30 months for his role and activities.

This case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Jason C. Honeycutt.

BROWNSVILLE, Texas – Norma Alicia Gallegos, 30, and her husband Jose Carlos Aguilar, 32, have been sentenced for their roles in a large-scale international cocaine trafficking conspiracy, United States Attorney Kenneth Magidson announced today. Gallegos aka “La Muchacha” and Aguilar, both of Harlingen, entered pleas of guilty Feb. 28, 2012, to conspiracy to possess with intent to distribute more than five kilograms of cocaine.

Today, U.S. District Judge Hilda G. Tagle, sentenced Gallegos to a total of 112 months in federal prison noting her lack of criminal history. Aguilar will serve 168 months of imprisonment.
 
At the hearing, additional testimony was presented including that Gallegos was the highest ranking member of the Gallegos Drug Trafficking Organization in the United States and worked closely with the Gulf Cartel in Mexico to move cocaine into the United States.  Gallegos utilized her family members, including her sister Conchita Gallegos, brother Erik Gallegos and husband, to transport the cocaine she received from Mexico to various points in the United States including Houston and St. Louis, Mo.  

Gallegos arranged for the Gulf Cartel to deliver drugs to her and then arranged for her own family members and drivers to assist with the transport of the drugs to the interior of the United States. On June 6, 2011, approximately 25 kilograms of cocaine from the Gallegos Drug Trafficking Organization was intercepted en route from Harlingen to St. Louis by agents with the Drug Enforcement Administration (DEA).

On Dec. 10, 2011, another five kilograms of cocaine was tracked by DEA agents as it was transported from Houston to St. Louis which led to the arrests of nearly all of the leadership of the Gallegos Drug Trafficking Organization.

The 30 kilograms of cocaine was all intended for members of the Black Mafia Family Street Gang - a nationally present and highly organized street gang responsible for numerous drug related and violent crimes throughout the United States. Members of the Black Mafia Family are responsible for the distribution of a significant amount of cocaine, heroin and marijuana in the St. Louis area.

Conchita Gallegos, of Houston, also pleaded guilty and will serve 38 months in prison. Erik Gallegos, of Harlingen, and others were prosecuted in the Eastern District of Missouri and have already been sentenced to federal prison. Additionally, numerous members of the Black Mafia Family of Saint Louis and their associates have been arrested and are pending prosecution in the Eastern District of Missouri in connection with this case.

The investigation leading to the criminal charges was a joint effort between DEA in both Brownsville and Saint Louis, as well as the Harlingen and Saint Louis County Police Departments and the Franklin County, Mo., Drug Task Force.

Assistant United States Attorney Holly D’Andrea prosecuted the case.

CORPUS CHRISTI, Texas – Jesus Orta, an English as a Second Language teacher in Corpus Christi, has been ordered to prison for 110 months, United States Attorney Kenneth Magidson announced today. Orta, 41, was convicted of possessing child pornography following his guilty plea Nov. 13, 2012.

Today, U.S. District Judge Janis Graham Jack imposed the sentence and expressed the need to protect the public from Orta and to recognize the harm he inflicted upon the victims whose images he possessed. Judge Jack further ordered Orta to serve a lifetime of supervised release following completion of the prison term, noting his crime and his troubling history of employment which placed himself around children. Orta was previously employed as a high school teacher and worked at Mental Health and Mental Retardation State School and La Raza Runaway shelter.

Orta, was arrested by the Corpus Christi Police Department’s (CCPD) Internet Crimes Against Children Task Force following the discovery of child pornography during a routine domestic disturbance call in Corpus Christi. CCPD officers responded to a complaint made by Orta against his brother for criminal trespassing. During the investigation of the trespassing case, the brother notified police that Orta was in possession of child pornography. Orta denied the accusations and refused officers consent to search his home for contraband. After the officers left the home to write up the criminal trespass warnings, Orta was observed discarding items of child pornography in a community dumpster on the housing complex grounds. Officers were able to gain entry into the home and several electronic media storage devices were discovered that contained child pornography in addition to the material removed from the dumpster. A subsequent computer forensic analysis was completed on the seized items and numerous images and videos were discovered. Orta was arrested and admitted to possessing the child pornography discovered in his home and the dumptser.                 

The case was jointly investigated by CCPD and Homeland Security Investigations.

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

HOUSTON – Houston Police Officers Emerson Canizales, 26, of Kingwood, and Michael Miceli, 26, of Humble, have been arrested following the return of an indictment charging conspiracy to violate the Hobbs Act and conspiracy to possess a controlled substance, United States Attorney Kenneth Magidson announced today.

Canizales and Miceli were arrested yesterday afternoon as they reported for duty. They are expected to appear in federal court this morning at 10:00 a.m. before U.S. Magistrate Judge Mary Milloy.

The two-count indictment, returned on Jan. 23, 2013, and unsealed upon their arrest, alleges the officers conspired in the possession of cocaine with intent to distribute in the Houston area and that they accepted money for the protection service.

Both officers are alleged to have conspired in the possession of cocaine on or about Dec. 26, 2012, and allegedly received a payment of $1000 for the protection they provided.

If convicted of possession with the intent to distribute, each faces no less than 10 years and up to life in prison as well as a possible $10 million fine. For extortion under color of law (Hobbs Act violation), they could also receive up to 20 years imprisonment and a $250,000 fine, if convicted.

The operation was an effort conducted by Houston Police Department - Internal Affairs, Drug Enforcement Administration and the High Intensity Drug Trafficking Area Program - Major Drug Squad. The case is being prosecuted by Assistant United States Attorney James McAlister.

CORPUS CHRISTI, Texas – A Man from Kyle has been sentenced to 240 months in federal prison without parole for conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, United States Attorney Kenneth Magidson announced today. Anthony Rolls, 28, pleaded guilty April 30, 2012.

Today, U.S. District Judge Nelva Gonzales Ramos sentenced him to 240 months in prison to be followed by a five-year-term of supervised release.

In March 2012, Border Patrol agents at the Sarita checkpoint arrested Rolls after agents discovered approximately 3.5 kilograms of methamphetamine concealed within the vehicle’s battery. Additionally, agents were able to identify and detain another vehicle traveling with Rolls, driven by co-conspirator Jesus Castillo Jr. at a gas station in Riviera. A detailed inspection of the second vehicle resulted in the discovery of approximately 3.5 kilograms of methamphetamine also concealed within the battery. Laboratory analysis determined that the methamphetamine had a purity of more than 95%.

Castillo is currently serving a 235-month sentence in the U.S. Bureau of Prisons for his involvement.

In federal custody since his arrest, Rolls will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.

The charge stems from an investigation by Drug Enforcement Administration and the United States Border Patrol. Assistant U.S. Attorney Lance Watt prosecuted the case.

BROWNSVILLE, Texas – Jose Luis Zuniga-Hernandez, 44, of Control, Tamaulipas, Mexico, is headed to prison for a term of seven years, United States Attorney Kenneth Magidson announced today. Zuniga-Hernandez aka “El Wicho” or “Comandante Wicho” or “XW” pleaded guilty to being an alien found within the United States after deportation and being an alien in possession of a firearm on Jan. 8, 2013.

Today, U.S. District Judge Andrew Hanen, who accepted the guilty plea, handed Zuniga-Hernandez a total term of 84 months in prison. At the hearing, additional testimony was presented including that Zuniga-Hernandez was a high ranking member of the Gulf Cartel in charge of the Rio Bravo and Matamoros plazas at different times during the years prior to his arrest. Testimony  further indicated that Zuniga-Hernandez had paid $57,000 dollars for a diamond, gold and ruby encrusted 38 super hand gun. 

Zuniga-Hernandez’s sentence includes upward adjustments or increases in his calculated sentencing guideline range because he was in possession of the firearm in connection with another felony offense. The sentence also represents a departure from the sentencing guidelines because of the defendant’s prior criminal history, his possession of a loaded handgun, 3.7 grams of cocaine and almost $40,000 dollars at the time of his arrest. Evidence indicated that the defendant had previously been convicted for possessing with intent to distribute more than a ton of marijuana in 1990.

He was further ordered to pay a $10,000 fine. As an illegal alien, Zuniga-Hernandez is expected to face deportation proceedings following his release from prison. In handing down the sentence, Judge Hanen stated  the crime committed represented a serious threat to the well-being of the citizens of South Texas.

Zuniga-Hernandez was previously convicted in January 2012, but later permitted to withdraw that plea. At the time he ultimately was convicted in January 2013, he admitted he had entered the United States illegally after he had been previously deported from the United States on Aug. 8, 1997. Prior to his deportation, Zuniga had been convicted of possession with intent to distribute marijuana on Feb. 14, 1990. Zuniga also admitted that at the time of his arrest he was in possession of a customized gold, diamond and ruby encrusted Colt 38 Super handgun.

Zuniga-Hernandez has been in jail 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.

CORPUS CHRISTI, Texas - Joseph Fellhauer, 64, of Victoria, has been sentenced to federal prison for distribution of child pornography, United States Attorney Kenneth Magidson announced today. He pleaded guilty Oct. 29, 2012.

Today, U.S. District Judge Nelva Gonzales Ramos handed Fellhauer a sentence of 120 months to be followed by a lifetime term of supervised release. Additional information was also presented today, including the defendant’s age and health. In handing down the sentence, Judge Ramos stated that the sentence was sufficient but not greater than necessary to deter future criminal conduct and protect the public. Fellhauer will also be ordered to register as a sex offender.

At the time of his guilty plea, Fellhauer admitted to the government’s rendition of facts concerning the offense. Fellhauer came to the attention of law enforcement when a Homeland Security Investigations (HSI) undercover agent downloaded several items of child pornography from a computer that was linked to Fellhauer in October 2010 and April 2011. HSI contacted the Corpus Christi Police Department’s (CCPD) Internet Crimes Against Children Task Force and enlisted their assistance in a joint investigation of the unlawful activity. 

On Oct. 6, 2010, an HSI agent downloaded several images of child pornography from an individual later identified as Fellhauer. A federal search warrant was executed by HSI agents and CCPD officers on Fellhauer’s residence in Victoria on April 12, 2011, at which time several electronic media storage devices were seized. Fellhauer, who lived alone and away from children, was not arrested at the time.

A subsequent forensic review of Fellhauer’s media devices by CCPD computer forensics experts revealed more than 12,000 images and 350 videos of child pornography, resulting in a protracted time consuming analysis. Fellhauer was arrested pursuant to a federal criminal indictment in January 2012. At the time of his arrest, Fellhauer was actively downloading child pornography. Fellhauer admitted to acquiring child pornography from the Internet and to having an interest in child pornography for more than 15 years. 

Fellhauer has been in custody since his January 2012 arrest where he will remain 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 Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

McALLEN, Texas – Adan Garcia-Figueroa, 59, of Hidalgo, will spend a total of 70 months in federal prison following his convictions on two counts of bringing an undocumented alien into the United States and one count of illegally re-entering the United States after a prior deportation, United States Attorney Kenneth Magidson announced today. Garcia-Figueroa was convicted by a jury Nov. 16, 2012, following three days of trial. 

Today, U.S. District Judge Randy Crane, who presided over the trial, handed Garcia-Figueroa 70 months for each of the three charged offenses including two counts of bringing aliens into the U.S. and one count of illegal re-entering the country following a prior deportation. All the sentences will be served concurrently. In handing down the sentence, Judge Crane specifically found Garcia-Figueroa obstructed the administration of justice when he testified falsely at trial. As a result of this finding, Judge Crane increased Garcia-Figueroa’s sentence. Garcia-Figueroa is also expected to face deportation proceedings following his release from prison.

During the trial, the government presented photos, maps and witness testimony illustrating Garcia-Figueroa’s unlawful entry despite being an aggravated felon and while bringing several undocumented aliens into the United States by navigating the Rio Grande River in the shadow of the Hidalgo Port of Entry. The evidence indicated the defendant utilized a raft to bring 12-17 aliens from various Latin American countries, including El Salvador, into the United States during three successive trips across the river. Agents assigned to a Border Patrol Baymaster marine vessel apprehended Garcia-Figueroa while he attempted to flee back to Mexico and later apprehended seven additional aliens after tracking their movement from the river.

Garcia-Figueroa testified and claimed he had previously set fishing nets downstream from the Hidalgo Port of Entry. He attempted to convince the jury he was in the process of floating down several miles of the river in an inflatable raft to retrieve his nets when two border patrol boats appeared and plucked him from his raft and falsely accused him of drug trafficking. Garcia-Figueroa claimed he was the only boater on the water although he admitted to using a raft similar to the one used by the alleged alien smuggler. Garcia-Figueroa could not account for the undocumented aliens that had crossed the river at the same time and place where Garcia-Figueroa was apprehended.

Despite these claims, the government was able to offer additional evidence showing Garcia-Figueroa made numerous admissions to the other aliens as they were being transported to the Border Patrol station including offering to assist the aliens with their return to the United States following their deportation.

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

This case was investigated by Homeland Security Investigations and the United States Border Patrol. Assistant United States Attorney Grady J. Leupold prosecuted the case. 

McALLEN, Texas - Teofanes Salas-Campos, 40, of Mission, has been sentenced to more than 11 years in federal prison prison for enticing a minor, United States Attorney Kenneth Magidson announced today. Salas-Campos previously pleaded guilty Sept. 17, 2012, admitting he intended to have sex with a minor for money.

In a hearing that concluded late yesterday, U.S. District Judge Randy Crane, handed Salas-Campos a 135-month sentence. At the hearing, additional evidence was presented including  the fact the defendant had taken a photograph of the victim on her cell phone which constituted sexually explicit conduct. The sentence was enhanced because the minor victim was only 14 years of age at the time and because there was a commission of a sex act. Salas-Campos will further serve a five-year-term of supervised release following completion of the prison term. He will also be required to register as a sex offender.

In April 2012, a Pharr Police Department investigator contacted Homeland Security Investigations (HSI) agents concerning the solicitation of a minor for sexual purposes. Agents recovered a cellular telephone that was being utilized by a 14-year-old minor to receive messages from adult males requesting sexual encounters in exchange for money. Posing as the minor, agents began conversing with the unknown males via text messages over the cellphone.

During this investigation, two others were arrested and subsequently charged in separate cases with enticing a minor. Felipe de Jesus Ponce-Torres, 24, of Mexico, previously pleaded guilty before U.S. District Court Judge Micaela Alveraz who sentenced him in November 2012 to 120 months in prison. Jose Luis Garcia-Saldivar, 28, also of Mexico, entered his plea guilty before Chief U.S. District Court Judge Ricardo H. Hinojosa and will be sentenced May 9, 2013. 

During their respective guilty pleas, all three men admitted they intended to have sex with an individual whom them believed was a minor and that they were going to pay the minor between $80 and $100.

All three men have been and will remain in custody.

The investigation leading to the charges against these defendants was conducted by HSI and Pharr Police Department. Assistant United States Attorneys Kimberly Ann Leo and Juan Villescas prosecuted the case.

McALLEN, Texas – Alejandro Mendoza, 19, of Pharr, has been handed a federal prison sentence for making false statements in the acquisition of firearms from Federal Firearms Licensees (FFL), commonly known as straw purchasing, United States Attorney Kenneth Magidson announced today along with Melvin King, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Mendoza pleaded guilty Aug. 31, 2012.

Today, U.S. District Judge Randy Crane handed him a 30-month-term of imprisonment to be followed by two years of supervised release.

In July 2012, ATF agents discovered information regarding several firearms purchases made by Mendoza. Subsequent investigation determined he had, in fact, purchased four AK-47 rifles. He admitted he provided false information on ATF forms that the firearms were purchased for himself, when he knew they were actually for another individual. 

Previously released on bond, Mendoza was permitted to remain on bond and was ordered to voluntarily surrender to a U.S. Bureau of Prisons facility Feb. 11, 2013.

The investigation was conducted by the ATF. Assistant United States Attorney Juan Villescas prosecuted the case.

McALLEN, Texas – Jose Aguirre-Nunez, 46, the head of an extensive alien smuggling organization operating in and around Starr County to Harris County, Texas, has been sentenced to a total of 150 months in federal prison, United States Attorney Kenneth Magidson announced today. Another defendant, Higinio Barrientos-Perez, 43, who was a caretaker of the aliens while being held at a stash house in Roma, will be sentenced this Thursday.

Aguirre-Nunez pleaded guilty on March 22, 2007, to conspiracy to transport illegal aliens and conspiracy to commit money laundering and received respective sentences of 150 and 150 months to be served concurrently. Aguirre-Nunez, who is a permanent resident, is expected to face deportation upon completing their federal prison sentences.

Evidence proved that on June 30, 2005, Border Patrol (BP) agents discovered 26 aliens from Honduras and El Salvador at a house in Roma after one of them escaped and contacted law enforcement authorities. Agents arrested Barrientos-Perez after the aliens identified him as the person in charge of the stash house.

During the subsequent investigation, agents discovered that two days earlier BP agents found two Honduran aliens in the brush near Falfurrias. These Honduran aliens told agents that their guide left them and a female behind when the female could no longer continue walking and that the female alien died. The autopsy determined she had died of dehydration. The Honduran aliens stated they ran out of water while they walked in the brush looking for help and that in order to survive they had to drink their own urine. The investigation lead agents to the husband of the deceased female who told agents he contracted with Aguirre-Nunez to transport his wife from Honduras to Houston.

The evidence collected during the investigation revealed that the Aguirre-Nunez alien smuggling organization transported several hundred illegal aliens from Starr County to Harris County, Texas. Between 2001 to 2005, the organization received approximately $400,000 through Western Union and/or MoneyGram which represented the payment by family members for the smuggling of illegal aliens.    

Aguirre-Nunez headed the organization and was responsible for contacting the Mexican alien smugglers, arranged for foot guides to cross the aliens into the United States and deliver them to stash houses in Starr County. Aguirre-Nunez also coordinated the transportation of the aliens to Harris County by hiring drivers to transport the aliens, foot guides to walk the aliens around the checkpoint and scouts to check for law enforcement while the aliens were being transported in vehicles.

Aguirre-Nunez and nine members of his organization were indicted for their role in this alien smuggling organization. All have pleaded guilty and been sentenced. 

Marciano Andres Avellaneda, 29, was a foot guide that walked aliens around the border patrol checkpoint and Miguel Angel Alarcon-Candelario, was the foot guide that left the Honduran female behind in the brush who later died. Both, who are illegal aliens from Mexico, pleaded guilty to conspiracy to transport illegal aliens and were sentenced 54 and 105 months in prison, respectively.

Omar Wilfredo Guerrero-Sosa, 33, Rosalba Garcia-Perez, 38, also illegal aliens from Mexico, pleaded guilty to conspiracy to harbor illegal aliens and were sentenced to respective 44 and 80 month terms of imprisonment. Guerrero-Sosa was a guide that crossed the aliens into the United States and took them to the Roma stash house, while Garcia-Perez, was a scout for law enforcement as well as took over Aguirre-Nunez’s responsibilities when he was not in Starr County.

Lizzette Barrera-Moreno, a U.S. citizen from Harris County, and Myra Yesenia Villarreal, 31, Guadalupe Perez, 67, Soraya Barrera-Morales, 49, all of Starr County, Texas, all also pleaded guilty to conspiracy to harbor illegal aliens. Perez drove vehicles north of the Border Patrol checkpoint and left them by the side of the road for the aliens to use to travel to Harris County and was ordered to serve 78 months in prison. Villarreal was a scout for law enforcement, while Barrera-Morales took food to the aliens who were held at the stash house in Roma. Both Villarreal and Barrera-Morales also picked up money sent by the family of the illegal aliens through Western Union. They will serve 40 and 37 months in prison, respectively. Barrera-Moreno, who leased the stash house in Roma, was sentenced to three years probation. 

The investigation was conducted by Homeland Security Investigations and was prosecuted by Assistant United States Attorney Anibal J. Alaniz.

HOUSTON - James M. Davis, 64, formerly of Baldwyn, Miss., the former chief financial officer of Stanford International Bank (SIB) and Houston-based Stanford Financial Group, was sentenced today to five years in prison for his role in helping Robert Allen Stanford perpetrate a fraud scheme involving SIB, and for conspiring to obstruct a U.S. Securities and Exchange Commission (SEC) investigation into SIB.

Today’s sentence was announced by U.S. Attorney Kenneth Magidson of the Southern District of Texas; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; FBI Assistant Director Ronald T. Hosko of the Criminal Investigative Division; Assistant Secretary of Labor for the Employee Benefits Security Administration (DOL EBSA) Phyllis C. Borzi; Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); and Chief Richard Weber, of Internal Revenue Service-Criminal Investigation (IRS-CI).

The prison sentence was imposed by U.S. District Judge David Hittner of the Southern District of Texas, who also sentenced Davis to serve three years of supervised release. As part of Davis’ sentence, the court also imposed a personal money judgment of $1 billion, which is an ongoing obligation for Davis to pay back criminal proceeds.

During the sentencing proceeding, Judge Hittner noted that Davis began cooperating with the government in early 2009, shortly after SIB’s collapse. Judge Hittner also noted that over the following three years, Davis provided substantial assistance to the authorities in the investigation and prosecution of others, including testifying at Stanford’s trial; testifying during the trial of Gilbert T. Lopez Jr. and Mark J. Kuhrt, Stanford’s former chief accounting officer and global controller, respectively; and preparing to testify against Laura Pendergest-Holt, Stanford’s chief investment officer. Holt eventually pleaded guilty; Stanford, Lopez and Kuhrt were convicted at trial.  Stanford and Holt are currently serving 110 years and three years in prison, respectively. Lopez and Kuhrt are in federal custody and await sentencing, scheduled for Feb. 14, 2013.

As part of his 2009 guilty plea, Davis admitted that he was aware of Stanford’s misuse of SIB’s assets, kept the misuse hidden from the public and from almost all of Stanford’s other employees and worked to prevent the misuse from being discovered. In addition, Davis acknowledged that in January 2009, when the SEC sought testimony and documents related to SIB’s entire investment portfolio, he conspired with others in an effort to impede the SEC’s investigation and help SIB continue operating.

The investigation was conducted by the FBI, USPIS, IRS-CI and DOL EBSA. The case against Davis is being prosecuted by Assistant U.S. Attorney Jason Varnado of the Southern District of Texas, Deputy Chief Jeffrey Goldberg, Deputy Chief William Stellmach and Trial Attorney Andrew Warren of the Justice Department Criminal Division’s Fraud Section. The Justice Department also thanks the SEC for their assistance and cooperation in this matter.

HOUSTON - A Bryan chiropractor has entered a plea of guilty to engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, United States Attorney Kenneth Magidson announced today.

Chase Lindsey, 34, is the co-owner of Lindsey Chiropractic Care located in Bryan. Today, he admitted he participated in a two-year conspiracy to defraud numerous auto insurance companies by allowing fraudulent chiropractic bills to be created under his name for treatments which were never performed and used as support for fraudulent settlement demand letters sent to auto insurance companies.

Lindsey entered into an agreement with the office manager of a law firm which represented clients allegedly injured in auto accidents. Lindsey agreed to provide medical evaluations of, and recommend treatment for, those patients in exchange for $2,000 in cash per month, which totaled approximately $58,000 during the course of the conspiracy.

For the clients he actually evaluated, Lindsey routinely recommended medically unnecessary therapeutic treatments. In some instances, Lindsey either never evaluated the patient or did so after the patient had already begun receiving treatments. The treatments, if done, were done by unlicensed, untrained and unqualified individuals whom Lindsey never supervised. Lindsey always prescribed the same six treatments but the patients usually received only two:  ice/heat packs and electric stimulation. He prescribed the treatments be done 3-4 times per week for 5-6 weeks, but patients usually went once a week for 3-4 weeks. Lindsey also provided no follow-up treatments.

Lindsey and others used four chiropractic clinics in the scheme. Lindsey started working at the first clinic, Texas Avenue Chiropractic Clinic, in February 2007 and continued until it closed on or about Sept. 1, 2007. After that, Lindsey was listed as the only chiropractor at H & E Chiropractic and Private Chiropractic Care, two businesses also involved in the conspiracy. After Private Chiropractic Care shut down in September 2009, Lindsey and others agreed to continue the fraud scheme by sending the law firm clients to Lindsey Chiropractic Care - Lindsey's chiropractic clinic. Clients were sent there until search warrants were executed in November 2009.

Despite changing the name and location of the chiropractic clinic four times, the fraud scheme remained the same. Co-conspirators recruited individuals allegedly involved in auto accidents to be represented by the law firm who were then sent to Lindsey to be evaluated. Lindsey routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained and unqualified individuals. Lindsey knew that most of the treatments were not being performed. Nonetheless, Lindsey allowed false and fraudulent chiropractic bills to be created under his name from each of the four clinics for treatments which were never performed. 

The fraudulent bills were used as support for settlement demand letters sent to auto insurance companies which caused the insurance companies to issue settlement checks. Lindsey acknowledged the scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims. The insurance companies paid at least $1.2 million in false claims during 2007-2009.

U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, set sentencing for April 22, 2013. At that time, Lindsey faces up to 30 years in prison and a possible $1 million fine. As part of his plea agreement, Lindsey also agreed to pay restitution of $1.2 million to the insurance companies victimized by the scheme. Lindsey was permitted to remain on bond pending his sentencing.

The remaining defendants charged in relation to the conspiracy are set for trial on April 2, 2013.

The criminal charges are the result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. Assistant United States Attorney Al Balboni is prosecuting the case.

CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted Jennifer Ellen Marie Rodriguez, 31, a U.S. citizen residing in Reynosa, Mexico, on one count of possessing with intent to distribute more than 10 kilograms of methamphetamine, United States Attorney Kenneth Magidson announced today. The jury returned its verdict just moments ago following a three-day trial and less than an hour of deliberation.

During the trial, the government presented testimony that Rodriguez was pulled over by a Texas Department of Public Safety trooper on June 23, 2012, near Encino. During that traffic stop, Rodriguez claimed to be traveling to San Antonio to attend her grandfather’s funeral. Rodriguez did not know the name or location of the funeral home and did not have appropriate attire expected for such an event.

Rodriguez provided consent to search her vehicle and was arrested after the methamphetamine was discovered hidden in a void behind the vehicle’s dashboard. The government also provided evidence that Rodriguez’s grandfather was a lifelong resident of Michigan and had passed away in 2011.    

Rodriguez admitted at trial that she made up the story about the funeral. She testified she did not know the drugs were hidden in her vehicle, but was driving to San Antonio to exchange the vehicle for her kidnapped cousin. Rodriguez claimed that on the previous day, her cousin was kidnapped in Mexico and kidnappers demanded she deliver the vehicle to San Antonio in exchange for her cousin.

The government countered with evidence Rodriguez never told this story to law enforcement at the time of her arrest. In fact, the government demonstrated that she had only made the claim just a few days before trial began.

Rodriguez is scheduled to be sentenced on April 24, 2013, at which time she faces a mandatory minimum of 10 years imprisonment and up to life imprisonment, as well as a possible $10 million fine. Rodriguez will remain in custody pending that hearing.

This case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Chad W. Cowan. 

HOUSTON – Jon August Holverson, the owner of Bayou City Properties, will be spending nine years in federal prison for conspiring to obtain approximately $1 million in disaster relief funds by fraudulent means, United States Attorney Kenneth Magidson announced today. Holverson, 52, of Bellaire, pleaded guilty in December 2011 to conspiracy to commit fraud in connection with a benefit authorized pursuant to a presidentially declared disaster and a substantive count of fraud.

Holverson had his bond revoked by U.S. District Judge Melinda Harmon in May 2012 following a pre-sentencing hearing that determined he committed obstruction of justice involving a local appraiser and the value of his properties allegedly damaged by Hurricane Ike. Today, Judge Harmon sentenced Holverson to five years imprisonment for conspiracy and nine years imprisonment for the substantive FEMA fraud count, to be served concurrently. He was also fined $30,000. He was further ordered to serve a three-year-term of supervised release following completion of his prison term.

Holverson admitted he conspired with his brother, Jeffrey Holverson, 49, of Tomball, and Timothy Berges, 55, of Pasadena, to commit disaster fraud between Sept. 26, 2008, and Feb. 16, 2011. Jon Holverson filed an application for a Small Business Administration (SBA) commercial disaster loan in the aftermath of Hurricane Ike, requesting more than $1 million. In order to get the SBA to disburse the loan funds, he admitted he submitted more than $850,000 in false invoices and cancelled checks purporting to show payments to his brother’s company, Quality Construction. When he was contacted by representatives of the SBA, Jeffrey Holverson falsely affirmed he had performed the work and been paid the money.

At the hearing today, the court took note that Holverson’s fraud and manipulation continued throughout the pendency of his sentencing in voluminous filings containing receipts and invoices unrelated to the SBA loan in an attempt to artificially lower his sentence. During court proceedings and in filings, it was pointed out that U.S. District Judge Lynn Hughes made similar findings against Holverson. In May 2010, Judge Hughes found that Holverson’s claim against insurance company was brought in bad faith and in a naked grasp for someone else’s money relating to a property he claimed was damaged in Hurricane Ike. 

Jeffrey Holverson and Timothy Burges also pleaded guilty to the conspiracy and both were sentenced to three years probation.

The investigation leading to the charges was conducted by special agents of the SBA – Office of Inspector General and Department of Homeland Security – Office of Inspector General. Assistant United States Attorney (AUSA) Ed Gallagher and Former AUSA Andino prosecuted the case.

The United States Attorney's Office for the Southern District of Texas is a member of the Department of Justice's Disaster Fraud Task Force, established to deter, detect and prosecute instances of fraud related to hurricanes and other types of disasters. Comprised of federal, state and local law enforcement investigating agencies, the Task Force combats all types of fraud relating to disasters and their aftermath, with an emphasis on charity fraud, emergency-benefit fraud, identity theft, insurance fraud, and procurement fraud.

Anyone suspecting criminal activity involving disaster assistance programs can make an anonymous report by calling the toll-free fraud hotline, 1-866-720-5721 or contacting the Disaster Fraud Fax at 1-225-334-4707 or the Disaster Fraud e-mail at [email protected], 24 hours a day, seven days a week until further notice. Information can also be sent by surface mail, with as many details as possible, to:

National Center for Disaster Fraud
Baton Rouge, LA 70821-4909

LAREDO, Texas – Juan Ramon Ibarra Jr., 30, of Laredo, has been convicted for his role in a conspiracy to transport five kilograms or more of cocaine and international money laundering, United States Attorney Kenneth Magidson announced today.

Ibarra was named in a sealed indictment returned by a grand jury on Aug. 28, 2012, which alleged a drug trafficking organization had transported more than five kilograms of cocaine since 2008. The organization transported cocaine from Nuevo Laredo, Mexico, to Houston and Miami, Fla., on a regular basis. With the guilty plea today, all seven individuals named in the indictment have now been convicted.

In his plea, Ibarra admitted he participated in the transportation of cocaine to Miami since 2004. He and his father, Juan Ramon Ibarra Sr. coordinated with Rene Cardenas and other co-conspirators to transport the drugs in aftermarket compartments installed in the rear wheel axles of tractor-trailers. Once the cocaine was delivered to Miami, the compartment was loaded with large amounts of United States currency destined for Nuevo Laredo. One such load was intercepted in March 2010 when agents recovered approximately $422,000 in the compartment with a drug ledger.

In 2010, Ibarra Sr. pleaded guilty to his role in the drug conspiracy and was sentenced by U.S. District Judge Micaela Alvarez to 130 months in federal prison. Following Ibarra Sr.’s arrest, Ibarra Jr. assumed the role of his father and continued the transportation of cocaine for the drug trafficking organization.

Ibarra Jr. faces a mandatory minimum sentence of 10 years and up to life in prison and a $10 million fine for the drug conspiracy as well as a maximum of 20 years and a substantial fine for the conspiracy to commit international money laundering. The United States is also seeking a money judgment in the amount of $2,408,204. U.S. District Judge Marina Garcia Marmolejo, who accepted the plea today, has set sentencing forApril 30, 2013.

The case is the result of a two-year Organized Crime Drug Enforcement Task Force Investigation dubbed Silver Fox Hunt led by the Drug Enforcement Administration with the assistance of Homeland Security Investigations. Assistant United States Attorneys James Hepburn and Elizabeth Rabe are handling the case.

Defendant calls himself a “monster” during the hearing

HOUSTON - DJ Christopher Lowe, 37, has been sentenced to a total of 540 months in federal prison for his convictions of possession, distribution as well as production of child pornography, United States Attorney Kenneth Magidson announced today. Lowe pleaded guilty Dec. 2, 2011, admitting he exploited six different children in order to produce child pornography.

Just moments ago, U.S. District Judge Ewing Werlein Jr. handed Lowe the statutory maximum of 360 months for each of three counts of sexual exploitation of children (production of child pornography) and 120 months for the possession charge all to run concurrently with each other and to the 240-month sentence for the distribution conviction. He was further ordered to serve 180 months for three additional charges of sexual exploitation of children which will run concurrently to one another but consecutively to the other sentences imposed today for a total sentence of 540 months. Lowe will also have to serve the rest of his life on supervised release following completion of that prison term and pay an $8000 fine.

Lowe spoke at the hearing and called himself a monster.

In handing down the sentence, U.S. District Judge Ewing Werlein Jr. noted that someone who victimizes half a dozen children requires a sentence that would deter others from becoming the monster as Lowe described himself to be. He called Lowe’s conduct “reprehensible,” and noted that each child should be considered of independent worth. He further noted that Lowe’s collection of pornographic images and videos was one of the largest he had ever seen.

The production and distribution charges occurred as far back as 2009 and June 2010, respectively, while he possessed the child pornography as recently as Aug. 13, 2010.

Lowe’s activities were discovered when an individual was arrested on similar charges in Italy. On that man’s computer, were child pornography images and chats between he and Lowe, including child pornography images/videos of Lowe’s own relatives. Based on the information obtained in Italy, a federal search warrant was executed on Lowe’s home in Houston on Aug. 13, 2010, at which time, more than 17,000 images and hundreds of videos of child pornography were found. All of the children used in the production of child pornography have been identified and were, at the time of Lowe’s arrest, as young as two years old.  

At the time the warrant was executed, Lowe was interviewed and admitted to downloading, possessing and distributing child pornography. He acknowledged his communication with the Italian individual and exchanging digital images and videos of child pornography with him.

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

The charges against Lowe are the result of an investigation conducted by members of the Innocent Images Unit of the Houston FBI, which focuses its attention on investigating offenses involving the exploitation of children via the Internet.

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

LAREDO, Texas – Ansel Cruz, 30, a life-long resident of Laredo, has entered a guilty plea to one count of armed bank robbery of the Laredo Federal Credit Union where he was formerly employed, United States Attorney Kenneth Magidson announced today.

Cruz admitted to robbing the bank on Corpus Christi Street on Jan. 6, 2012, forcing former co-workers at gunpoint to enter the bank’s vault.

On that date, employees were working after hours. Cruz, wearing black clothing and black face covering, forced employees to give him access through a rear door into the building where the gained entry into the Credit Union’s vault. As one employee exited the rear door, Cruz approached him, tied him up and left him outside the building’s rear entry. Another employee, not realizing the first employee had been restrained, also exited and was forced to let him into the bank. Cruz threatened to shoot both employees with a pistol if they did not cooperate.

After entering the bank, Cruz similarly restrained and threatened two custodians, took their car keys and locked them in a closet. Cruz took the money, exited through the same back door and drove off in the custodians’ vehicle, which was later found abandoned a few blocks away from the bank, close to Cruz’s residence.

Other employees reviewing the surveillance recordings a few days later immediately identified Cruz as the perpetrator, recognizing him as being a former employee who had worked with the Credit Union through 2011. After securing a search warrant for Cruz’s home, FBI agents and officers with the Laredo Police Department (LPD) retrieved the money from various locations, including his home, the stolen vehicle and other persons to whom he gave money. Agents and officers also secured additional items of physical evidence linking Cruz to the robbery, including a bag containing black clothing and gloves, rolls of tape, a pistol slide and ammunition magazine as well as several money bands used by the credit union. Relatives and friends of Cruz informed federal agents and investigators that Cruz admitted having committing the robbery.

The FBI Laboratory was able to confirm Cruz’s fingerprints on the bank bands found with the money in his home, as well as linking fibers on his clothing to the fibers found on the tape used to bind the employees. Blood found on the clothing was also matched to Cruz.

Cruz has been in federal custody since his arrest on Jan. 11, 2012, where he will remain pending his sentencing hearing to be set at a later date. At that time, he faces up to 25 years in federal prison and a possible $250,000 fine.

The matter was investigated by the FBI and LPD. Assistant United States Attorney Homero Ramirez prosecuted the case.

CORPUS CHRISTI, Texas - Joshua Wallace, 39, of Corpus Christi, has been handed a 160-month sentence for his conviction of possession of a firearm by a convicted felon, United States Attorney Kenneth Magidson announced today along with Melvin King Jr., special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Wallace entered a plea of guilty on Thursday, Sept. 27, 2012.

Today, Senior U.S. District Judge Hayden Head sentenced Wallace to the 160-month-term which will be followed by a five-year-term of supervised release.

At the plea hearing, Wallace admitted that in September 2011, he sold three handguns to an undercover agent with the ATF. The undercover purchases were made on Sept. 13, Sept. 14 and Sept. 27, 2011, in Corpus Christi and were captured by concealed audio and video recording devices. Wallace has four previous burglary convictions and one conviction of possession of heroin.   

Wallace has been in custody since his arrest on Aug. 28, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

This case was investigated by the ATF and prosecuted by Assistant United States Attorney Sam Brown IV.  

HOUSTON – Four Houston area residents have been sentenced for conspiring to commit mail fraud involving the theft of Sprint cellular phone customer data and telephones, United States Attorney Kenneth Magidson announced today. Frederick Sears, 38, Lakreshia Shana Smith, 28, and Vernon R. Parker Jr., aka PJ or Chad, 33, all of Houston, each pleaded guilty July 20, 2012, to one count of conspiracy to commit mail fraud. Troy Alexander Tipton, 21, of Tomball, pleaded guilty Aug. 2, 2012, to aiding and abetting access device fraud.

Today, Judge Lee H. Rosenthal handed Parker a sentence of 51 months to be followed by a three-year-term of supervised release. Last month, Judge Rosenthal sentenced Smith and Tipton each to three years of probation while Sears was ordered to serve 18 months in federal prison. Restitution was also ordered in the amount of 131,789.44 for all defendants. 

Beginning in April 2011 through Oct. 7, 2011, Tipton, an employee of Modern Wireless, sold at least 400 customer accounts, including their access information, to Parker. Parker then directed Sears, Smith and others to make claims for replacement or additional cellular telephones valued at $400-500 each using the stolen customer accounts.

Sears and Smith were arrested after agents followed them around the Houston area where they picked up packages containing fraudulently obtained cellular telephones. Conspirators had placed phone and Internet orders for either replacement phones (claiming phones were lost or stolen) or additional phones to be charged to unknowing customers of Sprint. The packages were mailed from Sprint locations outside of Texas to various hotels and apartments as directed by the conspirators. The total loss to Sprint is estimated at more than $136,000 attributable to the Parker organization. 

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

The convictions are the result of an investigation conducted by the Secret Service. Assistant U.S. Attorney Martha Minnis is prosecuted the case.