Southern District of Texas
Press releases recorded for this federal judicial district.
Foreign national charged with selling counterfeit cancer drugsRead the Press Release
HOUSTON – A federal grand jury has returned an indictment charging an Indian national with selling and shipping tens of thousands of dollars in counterfeit oncology pharmaceuticals into the United States, announced U.S. Attorney Alamdar S. Hamdani.
According to court documents, Sanjay Kumar, 43, of Bihar, India, and his co-conspirators allegedly arranged for the sale and shipment of fake, counterfeit versions of oncology pharmaceuticals - including Keytruda - to individuals in the United States.
Genuine Keytruda is a cancer immunotherapy that is approved in the United States for 19 different indications, including to treat certain types of melanoma, lung cancer, head and neck cancer, Hodgkin lymphoma, gastric cancer, cervical cancer and breast cancer. Merck Sharp & Dohme LLC, formerly known as Merck Sharp & Dohme Corp., has the exclusive right to authorize the manufacture of Keytruda for introduction into interstate commerce.
Kumar was arrested June 26 in Houston after traveling to the United States to conduct further negotiations aimed at expanding his business selling fake Keytruda in the U.S. market.
Kumar is charged with one count of conspiracy to traffic in counterfeit drugs and four counts of trafficking in counterfeit drugs. If convicted, he faces a up to 20 years in prison on each count as well as a possible $2 million fine.
Homeland Security Investigations and Food and Drug Administration conducted the investigation.
Assistant U.S. Attorney Jay Hileman is prosecuting the case along with Trial Attorneys Jeff Pearlman and Bryce Rosenbower of the Criminal Division’s Computer Crime and Intellectual Property Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Foreign National Charged for Selling Counterfeit Cancer DrugsRead the Press Release
A federal grand jury in Houston returned an indictment today charging an Indian national with selling and shipping tens of thousands of dollars’ worth of counterfeit oncology pharmaceuticals into the United States.
According to court documents, Sanjay Kumar, 43, of Bihar, India, and his co-conspirators allegedly arranged for the sale and shipment of fake, counterfeit versions of oncology pharmaceuticals—including Keytruda—to individuals in the United States. Genuine Keytruda is a cancer immunotherapy that is approved in the United States for 19 different indications, including to treat certain types of melanoma, lung cancer, head and neck cancer, Hodgkin lymphoma, gastric cancer, cervical cancer, and breast cancer. Merck Sharp & Dohme LLC, formerly known as Merck Sharp & Dohme Corp., has the exclusive right to authorize the manufacture of Keytruda for introduction into interstate commerce.
Kumar was arrested on June 26 in Houston after traveling to the United States to conduct further negotiations aimed at expanding his business selling fake Keytruda in the U.S. market.
Kumar is charged with one count of conspiracy to traffic in counterfeit drugs and four counts of trafficking in counterfeit drugs. If convicted, he faces a maximum penalty of 20 years in prison on each count.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Alamdar Hamdani for the Southern District of Texas; Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) Houston; and Special Agent in Charge Charles Grinstead of the Food and Drug Administration’s (FDA) Office of Criminal Investigations, Kansas City Field Office made the announcement.
HSI and the FDA investigated the case.
Trial Attorneys Jeff Pearlman and Bryce Rosenbower of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jay Hileman for the Southern District of Texas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Texas man sentenced for selling fentanyl-laced pills causing deathRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old Corpus Christi man has been ordered to federal prison for delivery of fentanyl resulting in death, announced U.S. Attorney Alamdar S. Hamdani.
Ricardo Julyan Kross Rios aka Kross pleaded guilty July 26, 2023.
U.S. District Judge David S. Morales has now ordered Kross to serve 180 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard additional evidence detailing the death of the 20-year-old male victim, found deceased on a living room sofa. He had fallen asleep there next to his girlfriend after a party. When she awoke the next morning, he was cold to the touch and not breathing. She immediately called 911 but paramedics were unable to resuscitate him. In handing down the sentence, Judge Morales noted that the circumstances of the case were tragic and that the loss of a life deserves a significant sentence.
“Falling asleep on a living room sofa should not become a death sentence, especially for a 20-year old beginning his journey into adulthood,” said Hamdani. “Fentanyl-laced pills disguised as something else are killing our kids, and it’s the mission of my office to hold everyone accountable - from the companies that supply the raw materials to the cartels that make the pills to the dealers that place them in the hands of America’s youth. Those like Rios should take note, if your pill kills, we will not rest until justice is done.”
On Dec. 10, 2022, authorities responded to a reported drug overdose in Corpus Christi and discovered a non-responsive individual pronounced dead at the scene. An autopsy later determined the cause of death was acute fentanyl toxicity.
The investigation led to the discovery that the victim had purchased pills from Rios who delivered them Dec. 9, 2022, to the parking lot adjacent to an apartment where a party was occurring. The victim consumed them during that event.
Witnesses described the pills as “press made” hydrocodone pills which may have contained fentanyl.
On Jan. 17, 2023, law enforcement encountered Rios at a residence in Corpus Christi in possession of a plastic bag containing “pressed” pills as well as some additional loose powder and partial pills. Laboratory analysis later confirmed the pills and powder in the plastic bag did contain fentanyl.
Rios will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration led the cooperative law enforcement effort targeting fentanyl with the assistance of Homeland Security Investigations, Jim Wells County Sheriff’s Office and police departments in Corpus Christi, Aransas Pass and Mathis. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Mental health services providers pay over a million to settle false claims liabilityRead the Press Release
HOUSTON – Two mental health care providers in the South Texas area have agreed to pay $1,083,000 to resolve False Claims Act (FCA) allegations regarding the submission of claims to Medicare, TRICARE and Medicaid that non-physician personnel rendered, announced U.S. Attorney Alamdar S. Hamdani.
From 2017 through 2020, Texas Behavioral Health PLLC (TBH) and United Psychiatry Institute LLC (UPI) allegedly engaged in a pattern and practice of falsely billing Medicare Part B.
According to the allegations, TBH and UPI would submit claims for mental health services that physicians had not rendered or not directly supervised as Medicare regulations require. Some services occurred on dates when the physicians were traveling outside of the United States and thus unable to provide the services. Others allegedly occurred at times when it was not logistically possible for the physicians to have rendered them or directly supervised the services themselves due to the sheer volume of patients at multiple office locations located in and around the Houston area.
Certain non-physician practitioners can provide mental health services but must have their own benefit categories and must bill the government programs directly using their own provider numbers. This did not happen in this case, according to the allegations. As a result of the alleged improper billing, Medicare, TRICARE and Medicaid reimbursed TBH and UPI at the higher physician rate.
“For a system to provide affordable mental health services, it’s important for healthcare providers to give accurate information about who is providing the services - not supply misinformation in an attempt to fleece that system,” said Hamdani. “My office will continue to hold healthcare providers accountable when they get reimbursed at a higher rate due to alleged improper or fraudulent billing practices.”
“As evidenced by recent settlements and indictments, healthcare fraud and abuse of our federally funded healthcare system is rampant,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “Too many providers are taking advantage of the mental health crisis and patient beneficiaries to bilk the system for millions of dollars. Ultimately, we all pay the price for their deceit in the form of higher premiums and out-of-pocket expenses. We encourage anyone who has information about healthcare fraud to please speak up and report it to the FBI.”
“Our federal health care system relies on the fundamental principle that providers bill correctly and adhere to the rules. Taxpayers who fund these programs deserve nothing less,” said Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG). “We will continue to collaborate with our law enforcement partners and prosecutors to ensure that those who submit false claims to Medicare are held accountable and that the Medicare trust fund is restored.”
The settlement stems from a qui tam or whistleblower complaint filed under the FCA, which permits a party to file an action on behalf of the United States and receive a portion of any recover. The qui tam case is United States ex rel. Gonzalez v. Texas Behavioral Health PLLC et al. The whistleblower will receive 17% of the proceeds from the settlement.
The U.S. Attorney’s Office for the Southern District of Texas and FBI conducted the investigation with assistance from DHHS – OIG and Texas Attorney General’s Office – Civil Medicaid Fraud Division. Assistant U.S. Attorney Melissa Green handled the matter.
Dozens charged in fraud schemes linked to Harris County bail bondsRead the Press Release
HOUSTON – A total of 53 Houston-area residents have been indicted for participating in wire fraud schemes related to the use of falsified documents to obtain bail bonds for individuals charged with criminal offenses, announced U.S. Attorney Alamdar S. Hamdani.
Of those charged, 50 are now in custody, some of whom will make their initial appearances before U.S. Magistrate Judge Christina A. Bryan at 10 a.m. or 2 p.m. July 25.
The remaining three are considered fugitives and warrants remain outstanding for their arrests – Tawana Jones, 44, Houston; Pamela Yoder, 60, Detroit, Michigan; and Amir Khan, 60, Pakistan. Anyone with information about their whereabouts is asked to contact the Houston FBI at 713-693-5000.
According to the indictment, returned July 16 and unsealed upon the arrests, employees of AABLE Bonds, a bail bonds company located in Houston, conspired with others to falsify and obtain falsified co-signer financial reports. This was allegedly done to qualify individuals charged with criminal offenses who would not otherwise qualify for what was necessary to meet the terms of their bond.
“An integral part of the criminal justice system, as old as the system itself, is the bail bond - a device that allows defendants temporary release while awaiting trial by guaranteeing future court appearances,” said Hamdani. “Honesty in the underwriting of those bail bonds is essential to ensuring compliance and protecting the community. However, this indictment alleges employees of AABLE Bonds and many others conspired to violate that trust. Today’s arrests and charges are the culmination of a multi-year, multi-agency and multi-jurisdictional effort to help protect the integrity of the bail bond system in Harris County.”
“This investigation exposing alleged fraud within the bail bond industry is the first of its kind and the result of a 24-month long FBI Houston-led operation into a colossal bail bond scheme operating out of Harris County,” said FBI Houston Special Agent in Charge Douglas Williams. “By allegedly falsifying financial reports related to bail bonds, the accused individuals secured their release back onto the streets of our community through an illicit revolving door within the bond system.”
“Utilizing the bail bond system in a fraudulent manner to allow the release of criminals is unacceptable. We are proud to have joined with our local, state and federal partners in getting these individuals off the streets,” said Acting Houston Police Chief Larry J. Satterwhite.
“Our crime analysts proactively launched this investigation to target violent offenders and those that exploit our system. These actions undermine the legal process and pose a threat to public safety. We are committed to working diligently with our partners to root out corruption and ensure that those who engage in such fraudulent activities are held accountable,” said Harris County Sheriff Ed Gonzalez. “Our priority remains the safety and security of Harris County residents, and we will continue to take action against those who seek to be involved in criminal activity.”
The indictment alleges 11 individuals are charged in Harris County with criminal offenses who subsequently obtained bonds based on falsified documents.
Employees of AABLE Bonds, including Mary Brown, 29, and Oscar Wattell, 34, both of Houston, allegedly recruited straw co-signers to represent they were working at companies or had earned incomes. The co-conspirators allegedly falsified this information on financial reports since the co-signers did not work at the companies or earn represented incomes.
Co-conspirators allegedly emailed or submitted the falsified co-signer financial reports via electronic communications. According to the indictment, the government and insurance agencies rely on these financial reports to enter into third-party agreements, known as surety bonds.
Out of 53 co-conspirators, all but one face charges in connection to alleged conspiracies to commit wire fraud.
The CEO of AABLE Bonds and an agent of Financial Casualty & Surety - Sheba Muharib, 58, Missouri City, is charged with allegedly affecting persons engaged in the business of insurance. Muharib allegedly knew Wattell had a criminal felony conviction involving dishonesty while engaging in the business of insurance.
If convicted, each face up to 20 years in federal prison and a possible $250,000 maximum fine for the wire fraud and conspiracy to commit wire fraud charges. Muharib could receive up to five years in prison and a $250,000 possible fine upon his conviction.
The FBI, Houston Police Department and Harris County Sheriff’s Office conducted the investigation with the assistance of Texas Department of Public Safety and U.S. Marshals Service. Assistant U.S. Attorneys Michael Day and Colton Turner are prosecuting the case.
Chinese national indicted for importation of enough chemicals to make millions upon millions of fatal doses of fentanylRead the Press Release
HOUSTON - A 48-year-old Chinese national has been indicted for his part in a conspiracy involving the importation of what is believed to be the largest amount of fentanyl precursors found in the Southern District of Texas and one of the largest in the country, announced U.S. Attorney Alamdar S. Hamdani.
Minsu Fang aka Fernando is expected to make an appearance before U.S. Magistrate Judge Diana Song Quiroga in Laredo July 23 at 11 a.m. Authorities originally arrested Fang in New York City, New York, June 19 on an arrest warrant based out of Laredo.
“We charged this defendant for importing enough fentanyl precursor chemicals from China to kill millions of Americans,” said Attorney General Merrick B. Garland. “Fentanyl is the deadliest drug threat the United States has ever faced, and the Justice Department is committed to breaking apart every link in the global fentanyl supply chain.”
“My office is focused on disrupting and dismantling the transnational criminal organizations flooding the United States with fentanyl, a drug that is killing our children,” said Hamdani. “Fang allegedly imported over 2,000 kilograms of raw materials from China destined for various places in Mexico used in the manufacture of fentanyl. This historic seizure represents a multi-agency collaboration that prevented the production of millions upon millions of deadly doses of fentanyl-laced pills.”
“To end the deadliest drug threat the United States has ever faced, the Drug Enforcement Administration (DEA) starts where the harm begins – with the Chinese chemical companies and the individuals that are selling chemicals to those who make and sell the fentanyl that is killing Americans. This work led DEA to Minsu Fang, who is charged with selling more than 2,000 kilograms of fentanyl precursors. This marks one of DEA’s largest seizures of fentanyl chemicals to date in the United States,” said DEA Administrator Anne Milgram. “The DEA is laser-focused on saving American lives by disrupting the entire global fentanyl supply chain that is responsible for flooding our communities with fentanyl. By disrupting Fang’s operations, DEA and our partners saved countless lives in the United States.
A federal grand jury charged Minsu Fang aka Fernando July 17 in a four-count indictment under seal with conspiracy to possess with intent to distribute a controlled substance, conspiracy to distribute a controlled substance for purpose of unlawful importation, conspiracy to import a controlled substance and conspiracy to export a controlled substance.
“Homeland Security Investigations (HSI) plays a pivotal role in disrupting the supply of illicit opioids at every point in the drug supply chain: internationally, at our nation’s borders, and in communities throughout the United States,” said Special Agent in Charge Craig Larrabee, HSI San Antonio. “The partnerships in this investigation were key to securing this indictment. The threat imposed by fentanyl dictates that agencies not only deconflict and coordinate, but to also collaborate. This investigation and prosecution are the perfect example of collaboration across agencies and throughout the country.”
The now unsealed charges allege Fang and his associates shipped over 2,000 kilograms of fentanyl precursor chemicals from China into the United States and on to Mexico in approximately 100 separate shipments between August and October 2023. Fang and his co-conspirators were able to avoid law enforcement interdiction of the shipments by declaring them to have a de minimis value, less than $800, and commingling the boxes containing the precursor chemicals with similarly low valued import items, according to the charges.
As a result, each of the shipments were allegedly admitted into the United States without a detailed inspection of the individual contents. Once in the United States, Fang, through co-conspirators, shipped the chemicals into Mexico, according to the charges.
If convicted, Fang faces up to life on each count of conviction as well as a $10 million fine.
The DEA and HSI conducted the investigation. Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
#OnePillCanKill
Chinese National Indicted for Importation of Enough Chemicals to Make Millions of Fatal Doses of FentanylRead the Press Release
A Chinese national was indicted for his part in a conspiracy involving the importation of what is believed to be the largest amount of fentanyl precursors found in the Southern District of Texas and one of the largest in the country.
Minsu Fang, 48, also known as Fernando, was charged in a four-count indictment with conspiracy to possess with intent to distribute a controlled substance, conspiracy to distribute a controlled substance for purpose of unlawful importation, conspiracy to import a controlled substance, and conspiracy to export a controlled substance.
“We charged this defendant for importing enough fentanyl precursor chemicals from China to kill millions of Americans,” said Attorney General Merrick B. Garland. “Fentanyl is the deadliest drug threat the United States has ever faced, and the Justice Department is committed to breaking apart every link in the global fentanyl supply chain.”
“To end the deadliest drug threat the United States has ever faced, the Drug Enforcement Administration (DEA) starts where the harm begins – with the Chinese chemical companies and the individuals that are selling chemicals to those who make and sell the fentanyl that is killing Americans. This work led DEA to Minsu Fang, who is charged with selling more than 2,000 kilograms of fentanyl precursors. This marks one of DEA’s largest seizures of fentanyl chemicals to date in the United States,” said DEA Administrator Anne Milgram. “The DEA is laser-focused on saving American lives by disrupting the entire global fentanyl supply chain that is responsible for flooding our communities with fentanyl. By disrupting Fang’s operations, DEA and our partners saved countless lives in the United States.”
“My office is focused on disrupting and dismantling the transnational criminal organizations flooding the United States with fentanyl, a drug that is killing our children,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Fang allegedly imported over 2,000 kilograms of raw materials from China destined for various places in Mexico used in the manufacture of fentanyl. This historic seizure represents a multi-agency collaboration that prevented the production of millions upon millions of deadly doses of fentanyl-laced pills.”
“Homeland Security Investigations (HSI) plays a pivotal role in disrupting the supply of illicit opioids at every point in the drug supply chain: internationally, at our nation’s borders, and in communities throughout the United States,” said Special Agent in Charge Craig Larrabee of HSI San Antonio. “The partnerships in this investigation were key to securing this indictment. The threat imposed by fentanyl dictates that agencies not only deconflict and coordinate, but to also collaborate. This investigation and prosecution are the perfect example of collaboration across agencies and throughout the country.”
The now unsealed charges allege Fang and his associates shipped over 2,000 kilograms of fentanyl precursor chemicals from China into the United States and on to Mexico in approximately 100 separate shipments between August and October 2023. Fang and his co-conspirators were able to avoid law enforcement interdiction of the shipments by declaring them to have a de minimis value, less than $800, and commingling the boxes containing the precursor chemicals with similarly low valued import items, according to the charges.
As a result, each of the shipments were allegedly admitted into the United States without a detailed inspection of the individual contents. Once in the United States, Fang, through co-conspirators, shipped the chemicals into Mexico, according to the charges.
If convicted, Fang faces a maximum penalty of life in prison on each count, as well as a $10 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA and HSI investigated the case.
Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter for the Southern District of Texas are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department sues Southwest Key for sexual abuse and harassment of children in sheltersRead the Press Release
HOUSTON – The Justice Department has filed a lawsuit against Southwest Key Programs Inc., a Texas-based nonprofit that provides housing to unaccompanied children who are encountered at the southern land border of the United States.
The lawsuit alleges Southwest Key, through its employees, has engaged in a pattern or practice of sexual abuse and harassment of unaccompanied children in Southwest Key shelters in violation of the Fair Housing Act.
“In search of the American Dream, children often endure perilous journeys on their migration north to the southern border. The sexual harassment alleged in the complaint would destroy any child’s sense of safety turning what was an American Dream into a nightmare,” said U.S. Attorney Alamdar S. Hamdani of the SDTX. “We look forward to working together with the Civil Rights Division (CRD) and the U.S. Attorney’s Office for the Western District of Texas (WDTX) to provide justice for the victims who allegedly suffered harm in Southwest Key’s shelters.”
“Sexual harassment of children in residential shelters, where a child should be safe and secure, is abusive, dehumanizing and unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s CRD. “Sexual abuse of children is a crisis that we can’t ignore or turn a blind eye to. This lawsuit seeks relief for children who have been abused and harmed, and meaningful reforms to ensure no child in these shelters is ever subjected to sexual abuse again.”
“Every child has the right to feel safe and secure in their dwelling, including in shelter care,” said U.S. Attorney Jaime Esparza for the WDTX. “This lawsuit seeks to provide a pathway for justice and healing for these children, who are among the most vulnerable in our society.”
“Department of Health and Human Services (DHHS) has a zero-tolerance policy for all forms of sexual abuse, sexual harassment, inappropriate sexual behavior and discrimination,” said DHHS Secretary Xavier Becerra. “The Department of Justice’s (DOJ) complaint against Southwest Key raises serious pattern or practice concerns. DHHS will continue to work with DOJ and oversight agencies to hold its care-giving programs like Southwest Key accountable. And we will continue to closely evaluate our assignment of children into care-giving programs to ensure the safety and well-being of every child in DHHS custody.”
Southwest Key operates 29 shelters that provide temporary housing for unaccompanied children in Texas, Arizona and California, and is the largest housing provider for unaccompanied children in the United States. Southwest Key receives grants from the DHHS Office of Refugee Resettlement (ORR) to provide housing and other care for unaccompanied children at these shelters. Unaccompanied children are minors who enter the United States without parents or other legal guardians and without lawful immigration status in the United States. The shelters are the children’s homes until they are reunited with their immediate families or placed with a relative or other vetted sponsor while their immigration cases proceed.
The lawsuit, filed yesterday in the U.S. District Court for the WDTX, alleges that, from 2015 through at least 2023, multiple Southwest Key employees subjected children in their care to severe or pervasive sexual harassment that has included, among other things, sexual contact and inappropriate touching, solicitation of sex acts, solicitation of nude photos, entreaties for inappropriate relationships and sexual comments. The complaint further alleges that Southwest Key took insufficient action to prevent sexual harassment of the children in its care, failed to consistently follow federal requirements for preventing, detecting and reporting abuse including sexual harassment, failed to take appropriate or sufficient action to protect the children in its care and discouraged children from disclosing sexual harassment in violation of federal requirements, despite ORR having issued multiple corrective actions to Southwest Key.
The department’s lawsuit seeks monetary damages to compensate children the alleged harassment children harmed, a civil penalty to vindicate the public interest and a court order barring future discrimination and requiring Southwest Key to take appropriate steps to prevent such harassment in the future.
Individuals who believe that they may have been victims of sexual harassment or abuse at Southwest Key shelters or who have other information that may be relevant to this case, may contact the Justice Department’s housing discrimination tip line at 1-833-591-0291. For Spanish dial “2,” then dial “2” for sexual harassment cases and dial “3” for the Southwest Key lawsuit mailbox. For English dial “1,” then dial “2” for sexual harassment cases and dial “9” for the Southwest Key lawsuit mailbox. Individuals can also email the Justice Department.
The CRD leads the Justice Department’s Sexual Harassment in Housing Initiative in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by people who have control over housing. Since launching the initiative in October 2017, the department has filed 43 lawsuits alleging sexual harassment in housing and recovered over $17 million for victims of such harassment.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available here.
Justice Department Sues Southwest Key for Sexual Abuse and Harassment of Children in SheltersRead the Press Release
The Justice Department has filed a lawsuit against Southwest Key Programs Inc. (Southwest Key), a Texas-based nonprofit that provides housing to unaccompanied children who are encountered at the southern land border of the United States. The lawsuit alleges that Southwest Key, through its employees, has engaged in a pattern or practice of sexual abuse and harassment of unaccompanied children in Southwest Key shelters in violation of the Fair Housing Act.
“Sexual harassment of children in residential shelters, where a child should be safe and secure, is abusive, dehumanizing and unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Sexual abuse of children is a crisis that we can’t ignore or turn a blind eye to. This lawsuit seeks relief for children who have been abused and harmed, and meaningful reforms to ensure no child in these shelters is ever subjected to sexual abuse again.”
“HHS has a zero-tolerance policy for all forms of sexual abuse, sexual harassment, inappropriate sexual behavior, and discrimination,” said U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra. “The U.S. Department of Justice’s complaint against Southwest Key raises serious pattern or practice concerns. HHS will continue to work with the Justice Department and oversight agencies to hold its care-giving programs like Southwest Key accountable. And we will continue to closely evaluate our assignment of children into care-giving programs to ensure the safety and well-being of every child in HHS custody.”
“Every child has the right to feel safe and secure in their dwelling, including in shelter care,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This lawsuit seeks to provide a pathway for justice and healing for these children, who are among the most vulnerable in our society.”
“In search of the American Dream, children often endure perilous journeys on their migration north to the southern border,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “The sexual harassment alleged in the complaint would destroy any child’s sense of safety, turning what was an American Dream into a nightmare. We look forward to working together with the Civil Rights Division and the U.S. Attorney’s Office for the Western District of Texas to provide justice for the victims who allegedly suffered harm in Southwest Key’s shelters.”
Southwest Key operates 29 shelters that provide temporary housing for unaccompanied children in Texas, Arizona and California, and is the largest housing provider for unaccompanied children in the United States. Southwest Key receives grants from the HHS Office of Refugee Resettlement (ORR) to provide housing and other care for unaccompanied children at these shelters. Unaccompanied children are minors who enter the United States without parents or other legal guardians and without lawful immigration status in the United States. The shelters are the children’s homes until they are reunited with their immediate families or placed with a relative or other vetted sponsor while their immigration cases proceed.
The lawsuit, filed yesterday in the U.S. District Court for the Western District of Texas, alleges that, from 2015 through at least 2023, multiple Southwest Key employees subjected children in their care to severe or pervasive sexual harassment that has included, among other things, sexual contact and inappropriate touching, solicitation of sex acts, solicitation of nude photos, entreaties for inappropriate relationships and sexual comments. The complaint further alleges that Southwest Key took insufficient action to prevent sexual harassment of the children in its care, failed to consistently follow federal requirements for preventing, detecting and reporting abuse including sexual harassment, failed to take appropriate or sufficient action to protect the children in its care and discouraged children from disclosing sexual harassment in violation of federal requirements, despite ORR having issued multiple corrective actions to Southwest Key.
The department’s lawsuit seeks monetary damages to compensate the children harmed by the alleged harassment, a civil penalty to vindicate the public interest and a court order barring future discrimination and requiring Southwest Key to take appropriate steps to prevent such harassment in the future.
Individuals who believe that they may have been victims of sexual harassment or abuse at Southwest Key shelters or who have other information that may be relevant to this case, may contact the Justice Department’s housing discrimination tip line at 1-833-591-0291. For Spanish dial “2”; then dial “2” for sexual harassment cases; and dial “3” for the Southwest Key lawsuit mailbox. For English dial “1”; then dial “2” for sexual harassment cases; and dial “9” for the Southwest Key lawsuit mailbox. Individuals can also email the Justice Department at [email protected] or report through our online portal at civilrights.justice.gov/link/southwestkey.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by people who have control over housing. Since launching the initiative in October 2017, the department has filed 43 lawsuits alleging sexual harassment in housing and recovered over $17 million for victims of such harassment.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
El Departamento de Justicia entabla demanda contra Southwest Key por abuso sexual y acoso de niñas y niños en refugiosRead the Press Release
El Departamento de Justicia ha entablado una demanda (solo en inglés) contra Southwest Key Programs Inc. (Southwest Key), una organización sin ánimo de lucro con sede en Texas que proporciona viviendas a niños no acompañados que se encuentran en la frontera terrestre sur de los Estados Unidos. La demanda alega que Southwest Key, a través de sus empleados, ha incurrido en un patrón o una práctica de abuso sexual y acoso de niños no acompañados en refugios de Southwest Key, en contra de la ley de Vivienda Justa.
“El acoso sexual de niños en refugios residenciales, donde un niño debe estar seguro, es abusivo, deshumanizante e ilegal”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “El abuso sexual de niños es una crisis que no podemos ignorar y al que no podemos hacer de la vista gorda. Esta demanda busca una compensación para niños que han sido abusados y perjudicados, así como reformas significativas para garantizar que ningún niño en estos refugios vuelva a ser víctima del abuso sexual”.
“El Departamento de Salud y Servicios Humanos de los Estados Unidos (HHS, por sus siglas en inglés) tiene una política de tolerancia cero para todos los tipos de abuso sexual, acoso sexual, conducta sexual impropia y discriminación”, dijo Xavier Becerra, Secretario del HHS. “La queja del Departamento de Justicia de los EE. UU. contra Southwest Key plantea inquietudes serias de patrón o práctica. HHS seguirá trabajando con el DOJ y las agencias supervisoras para hacer rendir cuentas a programas de provisión de cuidado como Southwest Key. Y seguiremos evaluando estrechamente nuestra asignación de niños a programas de provisión de cuidado para garantizar la seguridad y el bienestar de cada niño bajo la tutela del HHS”.
“Cada niño tiene derecho a sentirse seguro y protegido en su vivienda, incluso en el cuidado de un refugio”, declaró Jaime Esparza, el Fiscal Federal para el Distrito Oeste de Texas. “Esta demanda pretende proporcionar una vía para la justicia y el saneamiento de estos niños, que están entre los más vulnerables de nuestra sociedad”.
“Los niños, en busca del sueño americano, en muchos casos toleran viajes peligrosos durante su migración hacía el Norte, hacia la frontera sureña de los Estados Unidos”, comentó Alamdar S. Hamdani, el Fiscal Federal para el Distrito Sur de Texas. “El acoso sexual que se alega en la queja destrozaría la sensación de seguridad de cualquier niño, así convirtiendo a lo que antes era el sueño americano en una pesadilla. Estamos deseando colaborar con la División de Derechos Civiles y la Fiscalía Federal para el Distrito Oeste de Texas para hacer justicia para las víctimas que supuestamente fueron perjudicadas en los refugios de Southwest Key”.
Southwest Key opera 29 refugios que proporcionan una vivienda temporal a niños no acompañados en Texas, Arizona y California, y es el mayor proveedor de viviendas para niños no acompañados en los Estados Unidos. Southwest Key recibe subvenciones de la Oficina de Reubicación de Refugiados (ORR, por sus siglas en inglés) del HHS para proporcionar una vivienda y otros cuidados a los niños no acompañados en estos refugios. Los niños no acompañados son menores de edad que entran en los Estados Unidos sin padres u otros tutores legales y sin un estatus migratorio legal en los Estados Unidos. Los refugios son los hogares de los niños hasta que se reúnan con sus familias inmediatas o se los coloque con un familiar u otro patrocinador aprobado mientras se siga adelante con sus casos migratorios.
La demanda, que se presentó ayer ante el Tribunal Federal de Distrito para el Distrito Oeste de Texas, alega que, desde el 2015 hasta al menos el 2023, múltiples empleados de Southwest Key sometieron a los niños a su cuidado a acoso sexual grave o generalizado que ha incluido, entre otras cosas, contacto sexual y contacto inapropiado, la solicitud de actos sexuales, la solicitud de fotos de desnudos, súplicas para relaciones inapropiadas y comentarios sexuales. Más aún, la denuncia alega que Southwest Key no tomó suficientes medidas para prevenir el acoso sexual de los niños a su cuidado, no siguió sistemáticamente los requisitos federales para prevenir, detectar y declarar el abuso, lo que incluye el acoso sexual, no tomó las medidas adecuadas o suficientes para proteger a los niños a su cuidado y disuadió a los niños de divulgar el acoso sexual, en contra de los requisitos federales, a pesar de que ORR había emitido múltiples medidas correctivas a Southwest Key.
La demanda del Departamento busca daños monetarios para compensar a los niños perjudicados por el supuesto acoso, una sanción civil para vindicar el interés público y una orden judicial que prohíba la discriminación futura y que requiera que Southwest Key tome las medidas adecuadas para prevenir dicho acoso en el futuro.
Las personas que crean haber sido víctimas de acoso o abuso sexual en refugios de Southwest Key o que tienen otra información que puede ser relevante para este caso pueden comunicarse con la línea de consejos de discriminación de vivienda del Departamento de Justicia al 1-833-591-0291. Para español marque “2”; luego marque “2” para casos de acoso sexual; y marque “3” para el buzón de la demanda contra Southwest Key. Para inglés marque “1”; luego marque “2” para casos de acoso sexual; y marque “9” para el buzón de la demanda contra Southwest Key. También se puede enviar un correo electrónico al Departamento de Justicia a [email protected] o entregar un informe a través de nuestro portal en línea en civilrights.justice.gov/link/southwestkey.
La Iniciativa contra el acoso sexual en la vivienda, del Departamento de Justicia, está dirigida por la División de Derechos Civiles, en coordinación con las Fiscalías Federales por todo el país. La iniciativa busca abordar y crear conciencia (solo en inglés) sobre el acoso sexual por parte de personas que tienen control sobre la vivienda. Desde el lanzamiento de la iniciativa en octubre del 2017, el Departamento ha entablado 43 demandas que alegan acoso sexual en vivienda y ha recuperado más de $17 millones para las víctimas de dicho acoso.
La ley de Vivienda Justa prohíbe la discriminación en las viviendas por motivos de raza, color de piel, religión, origen nacional, sexo, discapacidad o situación familiar. Hay más información sobre la División de Derechos Civiles y las leyes que hace cumplir en su sitio web en https://www.justice.gov/es/crt.
Drug stash house operator heads to prisonRead the Press Release
McALLEN, Texas – A 47-year-old Pharr resident has been sentenced for his role in operating a drug stash house in north McAllen, announced U.S. Attorney Alamdar S. Hamdani.
Ivan Garza pleaded guilty Dec. 20, 2023.
U.S. District Judge John D. Rainey has now ordered Garza to serve 87 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard arguments regarding the possession of firearms in connection to the protection of drugs and drug money. In handing down the sentence, Judge Rainey noted Garza was not merely present at a drug stash house.
On Feb. 23, 2021, law enforcement responded to gunfire at a residence located in a north McAllen neighborhood. Upon arrival at the scene, authorities determined armed masked men had pulled Garza out of a black Chevy SUV as he was leaving the residence.
Law enforcement also learned that others at the residence opened fire from a balcony at the masked men as they fled the scene in Garza’s SUV.
In response, authorities made contact with Garza and other individuals staying at the residence. Following a search warrant, authorities seized three handguns, bundles of money totaling $268,000 and four kilograms of cocaine. Video from the residence’s cameras revealed Garza and others moved several of the seized cocaine bundles just before the masked men struck.
The investigation also revealed the black Chevy SUV the masked men took from Garza contained cocaine.
Garza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The McAllen Police Department and FBI conducted the investigation. Assistant U.S. Attorney Jesse Salazar prosecuted the case.
Former religious services assistant charged for smuggling contraband into federal prisonRead the Press Release
HOUSTON – A 32-year-old Beeville resident has been taken into custody for smuggling contraband into a federal prison, announced U.S. Attorney Alamdar S. Hamdani.
Ashley Priscilla Garza made her initial appearance in federal court in Corpus Christi.
Garza is charged with receiving a bribe as a public official. According to the indictment, returned June 26, Garza was employed as a religious services assistant at Federal Correctional Institution Three Rivers. During her employment, she allegedly abused the access her position gave her to smuggle contraband to an inmate in 2022 and 2023 in exchange for payment.
If convicted, Garza faces up to 15 years in federal prison and a possible $250,000 maximum fine.
The Department of Justice-Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Joel Dunn and Michael Chu are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Violent human smuggling stash house operation leads to significant federal prison sentencesRead the Press Release
McALLEN, Texas – Four individuals have been sentenced for harboring aliens, announced U.S. Attorney Alamdar S. Hamdani.
Abel Cavazos, 45, Mission; Rodrigo Acevedo, 24, and Darrel Palomares 24, all of Donna; and Jesus Valdez, 23, San Juan, pleaded guilty at varying times in early 2021.
Chief U.S. District Judge Randy Crane has now ordered Cavazos to serve a total of 63 months in federal prison to be immediately followed by three years of supervised release. Palomares and Valdez were each previously sentenced to 120 months in federal prison, while Acevedo received 87 months.
At the hearings, the court heard additional evidence that described the inhumane conditions where these aliens were held and the ransoms demanded. In handing down the sentence, the court noted the brutal facts of the case.
On Dec. 3, 2020, law enforcement encountered five undocumented aliens who had been released after paying a ransom to smugglers. They reported others were being held hostage at a stash house in Donna. Authorities arrived at the property where they observed several individuals fleeing from the residence, including Valdez, Palomares and Acevedo whom law enforcement eventually placed under arrest.
Authorities located 17 other undocumented aliens at the stash house. Evidence revealed approximately 30 individuals were harbored at the property.
The investigation revealed Cavazos was the owner of the residence. He leased the property to Valdez who was in charge of the stash house operations. Valdez further recruited Acevedo and Palomares to participate in the scheme.
Upon further investigation, law enforcement discovered all four men would often carry pistols and AK-47 style rifles to intimidate the victims and assaulted both male and female undocumented aliens on multiple occasions. Multiple individuals also reported receiving death threats from the smugglers if their families did not pay their ransoms.
They held the undocumented aliens on the second floor of a barn with no air conditioning, running water or bathrooms. At the time of the arrests, evidence revealed Cavazos and the others had not fed the individuals in approximately four days. The property was unsanitary, crowded and filthy.
All four men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection and San Juan Police Department. Assistant U.S. Attorney Jose A. Garcia prosecuted the case.
SDTX hosts historic reentry simulationRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas (SDTX) hosted, for the first time in its history, a reentry simulation for law enforcement, lawyers and probation, non-profit agencies, city personnel and relevant community members to mimic the challenges people who leave prison often face when reintegrating into society, announced U.S. Attorney Alamdar S. Hamdani.
The event was held at the United Way of Greater Houston July 2 and was designed to provide a deeper appreciation for the complexity of reentry and a stronger commitment to support policies and programs that address these challenges.
The simulation placed participants in the shoes of someone recently released from prison. In the exercise, attendees were given a detailed profile and had to navigate daily tasks under constraints similar to those formerly incarcerated people face. They had to try to find employment, secure housing, attend probation meetings or access necessary services - all with limited time, financial resources and facing significant bureaucratic hurdles.
A debrief and discussion about the criminal justice system and the complexities of reentry followed the simulation.
“This empathy, I hope, will lead to tomorrow’s second chances,” said Hamdani.
When individuals leave prison, they face significant challenges that act as barriers to reintegration - securing employment, finding stable housing, accessing healthcare and mental health support, and reconnecting with family and community. Without proper support, the risk of recidivism increases dramatically.
However, effective reentry programs that provide holistic support aimed at addressing this myriad of challenges can make a difference. By offering job training, educational opportunities, substance abuse treatment, mental health services and housing assistance, these programs create a supportive framework for individuals to rebuild their lives. Research consistently demonstrates that communities with robust reentry initiatives see significant reductions in recidivism rates. This not only promotes community safety but also reduces the financial burden on the justice system and taxpayers.
The simulation provided an eye-opening opportunity to participants. Some expressed the understanding of the immense difficulties those reentering society often face. The experience of frustration, anxiety and the constant pressure to comply with numerous requirements while trying to rebuild a life provided insights that mere statistics and reports cannot convey.
The SDTX is committed to raising awareness about the importance of reentry and to supporting initiatives that promote successful reintegration into society.
“I hope by combining the strengths of effective reentry programs and the enlightening experience of reentry simulations, we can forge a justice system that not only reduces recidivism but also honors the humanity and potential of every individual,” said Hamdani. “Stakeholders who truly understand and empathize with the struggles of reentry can become powerful advocates for the necessary changes in policy and practice.”
Hamdani praised the work of Executive Assistant U.S. Attorney Krystal Walker Noble, who organized and led the effort on behalf of the SDTX.
“The hurdles returning citizens face demonstrate how they continue to pay a debt to society long after completing a term of imprisonment,” said Noble. “By hosting this reentry simulation, the SDTX has encouraged community partners to join us in reducing recidivism throughout the district.”
For more information, please contact Noble at [email protected].
Choir teacher sentenced for receiving child pornography from another local residentRead the Press Release
McALLEN, Texas – A 33-year-old Mexican citizen has been sentenced for receiving child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Orlando Diaz-Ramirez pleaded guilty Sept. 8, 2023, admitting he received 300 videos of child pornography from Israel Flores, 22, Los Fresnos.
Chief U.S. District Judge Randy Crane has now sentenced Diaz to 97 months in federal prison. At the hearing, the court heard that Diaz had an additional eight GB of child pornography on his Dropbox account and that he was employed as a choir teacher at a local middle school at the time of the offense. In handing down the sentence, the court noted that by engaging in the receipt of this material, Diaz’ actions fed into the market for the production of child pornography and the possible victimization of future children.
Flores was also previously sentenced to 97 months in prison. Diaz and Flores must also pay $24,000 and $21,000, respectively, to known victims. Both men will also be ordered to register as sex offenders and must serve five years on supervised release, during which time they will have to comply with numerous requirements designed to restrict his access to children and the internet. Not a U.S. citizen, Diaz is expected to face removal proceedings following his sentence.
In October 2020, authorities conducted an investigation identifying an individual uploading child pornography to a Dropbox account. They linked the associated IP address to a residence in Donna that belonged to Diaz.
In April 2021, authorities executed a federal search warrant at the location. At that time, he admitted to downloading child pornography through Kik and uploading it to his Dropbox account. He also stated he possessed a USB drive containing child pornography which he received from Flores.
Authorities then contacted Flores at his residence in Los Fresnos who admitted he provided the USB to Diaz. He had used his Kik account to access accounts in Mega, a cloud-based storage and file hosting service, to obtain the child pornography. Flores then downloaded the material onto the USB drive.
A review of the USB drive revealed 300 videos of child pornography including prepubescent minors under the age of 12 engaged in sexual acts with adults.
Diaz and Flores will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Alexa D. Parcell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Mathis woman imprisoned for trafficking meth packages through mailRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old woman has been sentenced for conspiracy to possess with the intent to distribute liquid meth, announced U.S. Attorney Alamdar S. Hamdani.
Elena Barrera pleaded guilty Nov. 7, 2023.
U.S. District Judge David S. Morales has now ordered Barrera to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that described how Barrera had acted as a leader in the conspiracy by recruiting and paying another individual to receive meth for her. In handing down the sentence, the court noted the severity of the conduct and that Barrera had received at least six packages of narcotics.
The investigation into Barrera began in November 2020 when authorities learned of a parcel containing liquid meth that was being shipped from Mexico to Mathis. Law enforcement intercepted the package and found it contained approximately seven kilograms of liquid meth concealed within shampoo bottles. Authorities conducted a controlled delivery at the post office and Barrera picked up the package.
As part of her plea, Barrera admitted to using the mail to receive multiple other packages of narcotics and to recruiting others to retrieve packages of narcotics for her.
Barrera previously was ordered detained. Barrera will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Texas Department of Public Safety and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Tyler Foster prosecuted the case.
Convicted child abuser sent to prison for distributing child pornography on FacebookRead the Press Release
GALVESTON, Texas - A 34-year-old Texas City resident has been sentenced for distributing and possessing child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Anthony Joseph Kiamar pleaded guilty Nov. 20, 2023.
U.S. District Judge Jeffrey V. Brown has now ordered Kiamar to serve 180 and 120 months for the distribution and possession convictions, respectively. They will run concurrently for a total 180-month-term of imprisonment. At the hearing, the court also heard excerpts of a victim impact statement detailing the ongoing harm the dissemination of these child pornography images and videos caused. In handing down the prison terms, the court noted the seriousness of the crime and Kiamar’s history and characteristics. Kiamar was further ordered to pay $5,000 in restitution to a known victim and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Kiamar will also be ordered to register as a sex offender.
The investigation began after authorities discovered Kiamar had been distributing child pornography in 2019 using the Facebook Messenger platform. Prior to seizing his electronic devices, law enforcement also found he had engaged in an indecent assault against a minor victim. He was convicted of those offenses.
As part of the federal investigation, authorities conducted a forensic examination of his devices and uncovered 27 images and 44 videos of child pornography, some depicting all forms of sexual abuse of children. Several of the identified victims were as young as three.
Kiamar will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Houston Metro Police Department Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Christine Lu prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Woman arrested for smuggling rare Vietnamese chickens into United StatesRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old Aransas Pass resident has been taken into federal custody for smuggling merchandise into the United States and illegal transfer of merchandise, announced U.S. Attorney Alamdar S. Hamdani.
Jennifer Mayo turned herself in to authorities June 27. She is expected to make her initial appearance before U.S. Magistrate Judge Julie Hampton at 9:45 a.m.
According to the indictment, returned May 22, it is illegal to import poultry into the United States from regions where pathogenic avian influenza or Newcastle disease exist in commercial poultry populations unless specific conditions are met.
However, the charges allege she smuggled merchandise into the United States contrary to law. From Aug. 1, 2023, to Sept. 15, 2023, Mayo allegedly imported and brought into the United States Dong Tao Chicken eggs.
She is also charged with illegal importation and transfer of merchandise. Mayo allegedly facilitated the transportation and concealment of merchandise imported contrary to law - Dong Tao chicken eggs and hatchlings.
The indictment also includes a notice of forfeiture for the chickens and eggs.
As part of the investigation, authorities seized the chickens mentioned in the indictment. Due to their health, they had to be euthanized and are being held pending further investigation and evaluation.
If convicted, Mayo faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Department of Agriculture conducted the investigation with the assistance of Homeland Security Investigations and U.S. Marshals Service. Assistant U.S. Attorney Liesel Roscher 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.
Starr County justice of the peace and another sent to prison for roles in drug trafficking organizationRead the Press Release
McALLEN, Texas – Two Starr County residents, one a former justice of the peace (JP), are now headed to federal prison for their roles in a drug-trafficking organization, announced U.S. Attorney Alamdar S. Hamdani.
Roel Valadez Jr., 33, and Diego Alberto Reyes-Roiz, 43, both of Rio Grande City, pleaded guilty March 18 and March 25, respectively.
Chief U.S. District Judge Randy Crane has now ordered Reyes-Roiz to serve a total of 22 years in prison, while former JP Valadez must serve 21 months. Reyes-Roiz must also serve five years of supervised release following release from prison. Valadez will be on supervised release for three years.
In handing down the sentence, Judge Crane found Reyes-Roiz was the leader of a drug-trafficking organization that imported substantial quantities of drugs into the United States from Mexico which was then distributed throughout Texas. Reyes-Roiz was found responsible for the importation of approximately 43 kilograms of meth from Mexico into the United States in addition to large amounts of cocaine and marijuana.
The Court learned about how Valdez had been doing favors for Ignacio Garza - one of the heads of the drug trafficking organization. Garza had received information that authorities had stopped and apprehended one of his drug couriers. Valadez, a JP since 2018, made a series of phone calls to the Starr County jail to see if the courier had been booked, and if so, by whom and reached out to another Justice of the Peace to see if he could be released on his own recognizance.
“As an elected official in Starr County, a judge none the less, Valadez swore an oath to uphold the law,” said Hamdani. “However, he betrayed his oath of office and the citizens of Starr County when he abused his office to assist and protect a local drug-trafficking organization.”
At the time of his plea, Valadez admitted he had possessed with intent to distribute less than 100 kilograms of marijuana. He also acknowledged he had used his JP position to assist another person in obtaining a low bond for one of his workers that law enforcement had detained.
Reyes-Roiz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Valadez was permitted to remain on bond and voluntarily surrender at a later date.
Garza, 53, Rio Grande City, also pleaded guilty and is set for sentencing Sept. 5. At that time, he faces up to life in federal prison as well as a possible $10 million fine. He remains in custody.
The Drug Enforcement Administration, FBI, Homeland Security Investigations and IRS Criminal Investigations conducted the Organized Crime and Dug Enforcement Task Forces (OCDETF) investigations with the assistance of local task force officers. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorneys Patricia Cook Profit and Ted Parran prosecuted the cases.
Reynosa man sent to prison for attempting to smuggle several firearms to MexicoRead the Press Release
McALLEN, Texas – A 24-year-old resident of Reynosa, Mexico, has been sentenced for attempting to smuggle multiple firearms to Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Guadalupe Mendiola-Urbina pleaded guilty March 21, 2023.
Chief U.S. District Judge Randy Crane has now ordered Mendiola-Urbina to serve 38 months in federal prison. Not a U.S. citizen, Mendiola-Urbina is expected to face removal proceedings following his imprisonment.
On May 18, 2022, Mendiola-Urbina entered the United States through the Hidalgo Port of Entry in a vehicle. He was found to be in possession of $4,000 at the time he entered. That same day, Mendiola-Urbina attempted to leave the United States and enter Mexico through the Hidalgo Port of Entry in the same vehicle.
Upon inspection, authorities discovered seven Glock pistols and eight firearm magazines concealed in his vehicle. Mendiola-Urbina admitted to hiding the firearms and magazines in the vehicle to take them to Mexico.
Mendiola-Urbina will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Customs and Border Protection conducted the joint investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted the case.
Fugitive receives significant sentence for synthetic narcoticsRead the Press Release
VICTORIA, Texas – A 38-year-old Sugar Land resident has been sentenced for conspiracy to possess with intent to deliver a synthetic cannabinoid and a separate charge for failure to appear, announced U.S. Attorney Alamdar S. Hamdani.
Naveed Rasheed Shike pleaded guilty April 2.
U.S. District Judge John D. Rainey has now ordered Shike to serve 208 months in federal prison for conspiracy to possess with intent to distribute a synthetic cannabinoid and another 54 months for failure to appear. The total 262-month prison term will be immediately followed by three years of supervised release. At the hearing, law enforcement presented testimony on the impact synthetic cannabinoids have on the local community, adverse effects of those substances and the imminent hazard the substances present to public safety. In handing down the sentence, the court noted and acknowledged the significant danger of synthetic cannabinoids as well as the large scale of the operation, specifically the volume of drugs Shike distributed and the significant number of affected individuals.
On Sept. 19, 2016, authorities conducted a traffic stop on U.S. Highway 77 south of Victoria. Law enforcement identified the driver as Henry Martinez and the front seat passenger as Shike.
During a search of the vehicle, authorities discovered over 1,400 retail packages of synthetic cannabinoids to be sold to and smoked. Shike admitted the synthetic cannabinoids were for delivery to individuals in Corpus Christi, and they were going to pick up $26,000. Shike admitted the “ledger” in the vehicle was from a prior trip and had done this several times.
Both Martinez and Shike were initially arrested and permitted release on bond.
On Oct. 2, 2019, Shike failed to appear at a scheduled court hearing before Judge Rainey, resulting in a warrant for his arrest. Authorities determined Shike had fled the United States to Karachi, Pakistani.
On Jan. 24, 2024, as part of Operation Lone Star, law enforcement engaged in a high-speed vehicle pursuit resulting in a bailout in Sullivan City. Authorities then tracked, located and arrested Shike. At the time of his arrest, Shike had been a fugitive for more than four years.
Laboratory analysis confirmed the presence of the synthetic cannabinoid FUB-AMB. Experts determined that based on the chemical structure and the pharmacological effects, FUB-AMB is a controlled substance under the Controlled Substance Analog Enforcement Act.
Synthetic cannabinoids are chemical compounds that mimic THC, the psychoactive ingredient in marijuana. After application to carrier mediums such as plant material, these chemical compounds are put into rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and marketed as incense for the purpose of smoking. It is commonly sold and known as synthetic marijuana, fake weed, legal and popular brand names including Kush, Spice, K2, Klimaxx and many other names.
Martinez, 48, Rosenberg, pleaded guilty Jan. 9, 2018, and received a 24-month sentence followed by two years of supervised release for conspiracy to distribute controlled substance analogs.
Shike has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance from the Drug Enforcement Administration, U.S. Marshals Service and Texas Department of Public Safety. Assistant U.S. Attorney Lance Watt prosecuted the case.
Foreign national charged with selling counterfeit drugsRead the Press Release
HOUSTON - An Indian national is set to appear for his detention hearing on charges related to his alleged sale and shipment of counterfeit cancer pharmaceuticals into the United States, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Sanjay Kumar, 43, Bihar, India, June 26. He is expected to appear before U.S. Magistrate Judge Peter Bray at 10 a.m.
According to the complaint, Kumar arranged to have shipped counterfeit versions of Keytruda, an oncology pharmaceutical Merck and Co. manufactures, to individuals in the United States on several occasions. He also allegedly did the same with counterfeit versions of other oncology pharmaceuticals.
Kumar is charged with conspiracy to traffic in counterfeit goods (drugs). If convicted, he faces a maximum of 10 years in federal prison as well as a possible $1 million fine.
Homeland Security Investigations and Food and Drug Administrations conducted the investigation.
Assistant U.S. Attorney Jay Hileman is prosecuting the case along with Trial Attorneys Jeff Pearlman and Bryce Rosenbower of the Criminal Division’s Computer Crime and Intellectual Property Section.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Million-dollar ammunition smuggling ring dismantledRead the Press Release
McALLEN, Texas – A 34-year-old man residing in Mexico has pleaded guilty to his role in a conspiracy to launder money related to the purchase of over two million rounds of ammunition, announced U.S. Attorney Alamdar S. Hamdani.
Erving Alberto Sauceda aka Alberto Lizarraga Barrera admitted to conspiring with others to smuggle currency and monetary instruments from Mexico into the United States. Sauceda and co-conspirators planned to then place large scale ammunition orders through various internet retailers.
As part of the scheme, Sauceda admitted he and others purchased approximately $1,057,464 worth of ammunition and magazines from approximately August 2021 through the time of his arrest this April.
The ammunition included 1,760,010 rounds of 7.62x39mm, 278,000 rounds of .223, 111,000 rounds of 5.56, 30,000 rounds of .308, 1,000 rounds of 9mm and 504 AK rifle magazines.
The items were subsequently shipped to various locations in the Rio Grande Valley for their intended unlawful export to Mexico.
Sauceda admitted he knew the ammunition and magazines were purchased for the purpose of being unlawfully smuggled from the United States to Mexico in violation of federal law.
“Smuggling millions of rounds of ammunition into Mexico is astounding and historic, even for the Southern District of Texas, a district that is ground zero in the battle against Mexico’s cartels and the illicit supply of firearms and ammunition to cartels,” said Hamdani. “This prosecution holds accountable the individuals and transnational criminal networks financing and smuggling firearms and ammunition into Mexico. Today’s guilty pleas are a result of the close partnership between federal and state law enforcement.”
Chief U.S. District Judge Randy Crane will impose sentencing Sept. 12. At that time, Sauceda faces up to 20 years in federal prison and a possible $500,000 maximum fine.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas Department of Public Safety - Criminal Investigations Division are conducting the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Customs and Border Protection, U.S. Marshals Service, Hidalgo County Sheriff’s Office, Hidalgo County Constable’s Office and police departments in Mission, La Joya and Palmview. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Eight charged locally as part of national health care fraud enforcement actionRead the Press Release
HOUSTON – Several local residents and others are now charged in six separate cases in the Southern District of Texas (SDTX) with varying counts related to the Justice Department’s 2024 National Health Care Fraud Enforcement Action, announced U.S. Attorney Alamdar S. Hamdani.
“The enforcement actions, including one against a Houston-area lab that is alleged to have fraudulently billed Medicare hundreds of millions of dollars, represents our coordinated efforts to combat health care fraud and prosecute those who exploit vulnerable individuals for profit,” said Hamdani.
Those charged in the SDTX include Houston residents Sharon Pickrom, 64, Darlene Burbridge, 65, and Carmalita Landry, 53; as well as Ijeoma Victoria Ehieze, 61, Katy; Michael Ogbebor, 43, Richmond; and Harold Albert “Al” Knowles, 56, Delray Beach, Florida, Chantal Swart, 49, Boca Raton, Florida, and Svitlana Meier, 50, Clearwater, Florida.
The charges are part of a strategically coordinated, two-week law enforcement action that resulted in criminal charges against a total of 193 people nationwide for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. They allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets. In connection with the enforcement action, authorities seized over $231 million in cash, luxury vehicles, gold and other assets.
A federal grand jury indicted Pickrom June 12 with one count of conspiracy to defraud the United States and paying and receiving kickbacks as well as receipt of kickbacks in connection with a $1.7 million health care fraud and kickback scheme. Pickrom allegedly controlled a purported nonprofit corporation, referred false and fraudulent prescriptions that prescribers issued without their knowledge in the name of Department of Labor - Office of Workers' Compensation Programs (DOL-OWCP) claimants, often without their knowledge, to Custom Care Pharmacy in exchange for illegal kickbacks.
In a separate but related case, Burbridge and Landry were charged by information with one count of conspiracy to defraud the United States and paying and receiving kickbacks in connection with the same $1.7 million scheme. As alleged in the information, Burbridge owned Criterion Therapy Center, a physical therapy company that serviced DOL-OWCP claimants. She allegedly referred prescriptions to Landry, a pharmacist and owner of Custom Care Pharmacy, in exchange for illegal kickbacks and bribes.
Ehieze was indicted June 5 with one count of conspiracy to commit health care fraud, five counts of health care fraud and one count of conspiracy to pay and receive kickbacks. The charges are in connection with an alleged scheme to fraudulently obtain over $1.5 million in Medicare and Medicaid funds. Ehieze, the owner of Sanctified Home Health Services Inc., allegedly billed Medicare and Medicaid for home health services that were not provided and/or not medically necessary and based on illegal kickback payments to marketers and patients.
A federal grand jury indicted Ogbebor June 12 with health care fraud in connection with an alleged scheme to fraudulently obtain millions in private insurance funds. According to the charges, Ogbebor was the chief financial officer of Stafford Dialysis before being fired. Following his termination, the indictment alleges Ogbebor created a “phantom” business under the name “Stafford Renal” through which he billed private insurance for dialysis treatments that were never administered to people who were formerly patients of Stafford Dialysis. Ogbebor allegedly billed approximately $26 million to Cigna and Allegiance - private insurance companies - and caused them to pay over $5.1 million to Stafford Renal for services that were not rendered.
A federal grand jury indicted Knowles and Swart June 25 with conspiracy to defraud the United States and paying and receiving kickbacks. Knowles is also charged with conspiracy to commit health care fraud, while Swart also faces a charge of receipt of health care kickbacks. The allegations are in connection with a $359 million scheme to bill Medicare for medically unnecessary genetic tests that were induced by kickbacks. As alleged in the indictment, Knowles was the owner of two Houston-area labs, Bio Choice and Bios Scientific. He allegedly entered an agreement with Swart for the referral of Medicare beneficiary DNA samples and signed doctors’ orders for genetic testing Knowles used to bill Medicare through his labs. Knowles allegedly concealed his kickback arrangement with Swart through sham flat fee contracts. The charges allege Knowles knew Swart used call centers and telemedicine doctors to obtain the DNA samples and signed doctors’ orders, and that providers Swart used to obtain these orders were not the beneficiaries’ treating physicians and did not use the genetic testing results to treat the beneficiaries.
The final case against Meier was indicted June 12. She is charged with money laundering and unlawfully operating a money transmitting business in connection with a pharmacy at the center of a health care fraud scheme. Meier allegedly owned Kim Long Pharmacy in Houston that billed private insurance companies for medicines the pharmacy never provided to alleged patients. During the course of the conspiracy, the pharmacy received approximately $4.3 million of fraudulent funds from the insurance companies, according to the charges. At the direction of others, Meier then allegedly transferred approximately $3.6 million of the fraudulent proceeds to overseas accounts in Hong Kong and Singapore.
Conspiracy to defraud the United States and conspiracy to pay and receive kickbacks carry possible five-year prison sentences. If convicted of conspiracy to commit health care fraud, paying and receiving kickbacks, health care fraud, receipt of health care kickbacks or money laundering, those charged face up to 10 years, while unlawfully operating a money transmitting business carries a possible five-year prison sentence. They could also be ordered to pay hundreds of thousands in fines.
FBI, Department of Health and Human Services – Office of Inspector General (OIG), Texas Attorney General’s Office – Medicaid Fraud Control Unit, Department of Homeland Security, DOL-OIG, Veterans Affairs – OIG and U.S. Postal Service – OIG conducted the various investigations. Assistant U.S. Attorneys Kathryn Olson and Grace Murphy of the SDTX and Trial Attorneys Ethan Womble, Devon Helfmeyer, Andrew Tamayo and Monica Cooper of the Department’s Health Care Fraud Strike Force are prosecuting the respective cases.
An information or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Laredo teacher linked to child pornography shared on P2P application indictedRead the Press Release
LAREDO, Texas – A 41-year-old Laredo resident has been charged with possession, receipt and distribution of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury returned a three-count indictment June 25 against Roberto Ortiz Jr. He is expected to appear for his arraignment before U.S. Magistrate Judge Diana Song Quiroga July 5 at 10:15.
On March 23, law enforcement allegedly received four child pornography files from a Laredo IP address. The indictment alleges it was associated with Ortiz, and he shared them through a peer-2-peer application (P2P).
On June 4, law enforcement executed a search warrant of Ortiz’s residence, according to the charges. Ortiz allegedly gave authorities access to his computer and showed them where his downloaded content is saved in his computer. The charges allege they discovered several files containing child pornography, including the four files law enforcement received.
Ortiz is a teacher at a local high school. There is no evidence his activities are linked with his employment at this time.
If convicted, Ortiz faces up to 20 years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation with the assistance of the Laredo Child Exploitation Task Force.
Assistant U.S. Attorney Christine A. Cortez is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Inmates sentenced for violent assault on detention officerRead the Press Release
HOUSTON – Two men have been sentenced for aiding and abetting in the assault of a detention officer at the Joe Corley Processing Center, announced U.S. Attorney Alamdar S. Hamdani.
Juan Ausencio, 24, Spring Branch, and Adin Delgado-Perdomo, 39, Honduras, both pleaded guilty Nov. 14, 2023.
Chief U.S. District Judge Randy Crane has now imposed a 30-month-term of imprisonment for Ausencio. The sentence will run concurrently to his 285-month sentence for carjacking, discharging a firearm during a crime of violence and destruction of federal property. Ausencio must also serve three years on supervised release following his prison term. Delgado-Perdomo received 70 months in federal prison to run concurrent to the 70-month sentence he also received for unlawfully re-entering the United States as a convicted felon. Not a U.S. citizen, Delgado-Perdomo is expected to face removal proceedings following his imprisonment.
“No federal detention officer should have to suffer a bloody nose, swelling in the face and a concussion for simply doing his job," said Hamdani. "We have a duty to protect those who supervise and secure violent offenders. These documented gang members attempted to thwart security measures in the facility and then ganged up on the detention officer when he attempted to undo their handiwork. These prosecutions demonstrate that my office will seek justice when inmates decide to violently attack detention officers.”
On Sept. 15, 2022, several inmates housed in the same dorm at the Joe Corley Processing Center intentionally and forcibly assaulted a detention officer while he was assisting federal employees in the performance of official duties.
The officer was in the process of clearing a bar of soap stuffed into the locking mechanism of the door leading to the dorm, which prevents the door from working properly. At that time, the officer received multiple punches and kicks to his body and his head.
He sustained various injuries resulting in cuts and bruises, swelling on his face and head, a bloody nose and mouth as well as a concussion. Corrections officers witnessed the incident and identified the inmates who participated in the assault.
Earlier this year, three others received sentences for their roles in the physical assault of the detention officer - Edwin Paz-Cuevas, 23, Honduras, and Houston residents Victor Enrique Orellana, 36, and Juan Alberto Viera, 32.
All will remain in custody.
The FBI conducted the investigation. Assistant U.S. Attorney Carrie Wirsing prosecuted the case.
Final conspirator sent to prison for stealing nearly $4M in IRS refundsRead the Press Release
HOUSTON – A 33-year-old Houston woman has been sentenced for her role in a scheme to cash stolen tax checks, announced U.S. Attorney Alamdar S. Hamdani.
Whitley Rachelle Carter pleaded guilty Oct. 2, 2023, to one count of conspiracy to commit bank fraud.
Chief U.S. District Judge Randy Crane has now ordered Carter to serve 30 months in federal prison to be immediately followed by five years of supervised release. Carter was also ordered to pay restitution in the amount of $4,483,987.89 to Regions Bank and PNC Bank.
“A stolen Lamborghini, stolen checks, fake identities, fake bank accounts and callous criminals working together. Those are the ingredients for a scheme to steal almost $4 million in IRS refunds,” said Hamdani. “Carter brazenly entered banks with counterfeit identification documents and stolen checks on multiple occasions - one check as large as $2.9 million. Thanks to law enforcement’s efforts, Carter won’t be anywhere near a bank (or a check) for years to come.”
In approximately January 2022, authorities discovered that a couple in Houston had not received their expected $2,932,446.84 IRS refund check in the mail.
An investigation revealed Kuljinder Singh Hunjan and Carter used fake IDs with the victims’ personal information to open accounts at Regions Bank in January 2022.
On Jan. 18, 2022, Hunjan and Carter deposited the victims’ refund check into the fraudulent bank account.
Bank surveillance footage helped authorities identify Hunjan and Carter, with Hunjan’s fingerprints also found on the check. The investigation linked Carter to Hunjan and co-conspirator Benjamin Thomas through phone calls and CashApp transactions.
On April 13, 2022, authorities arrested Thomas while he was driving a stolen Lamborghini. At that time, they discovered two debit cards in his possession which were linked to fraudulently created accounts used to receive the proceeds of the nearly $3 million check. The co-conspirators used stolen identities to open the accounts and launder the proceeds.
Thomas also had an ATM receipt showing a withdrawal of $800 from the Regions bank account that received the check.
Toll records from the cellphone Thomas had at the time of his arrest indicate he contacted Hunjan numerous times during the course of the conspiracy.
Co-conspirators Hunjan, 38, Spring Valley, New York, and Thomas, 39, Richmond, pleaded guilty to the same charges Feb. 16, 2023, and Oct. 2, 2023, respectively. Hunjan was sentenced to a 42-month federal prison sentence while Thomas received 90 months.
Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS Criminal Investigation, Treasury Inspector General, Treasury Inspector General for Tax Administration, Secret Service, Texas Department of Public Safety, Houston Police Department and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.
Crack distributor heads to prisonRead the Press Release
GALVESTON, Texas – A 45-year-old La Marque resident has been sentenced for conspiracy to distribute cocaine and cocaine base, announced U.S. Attorney Alamdar S. Hamdani.
Ronnie LaShawn Allen pleaded guilty Feb. 24, 2022.
U.S. District Judge Jeffrey V. Brown has now ordered Allen to serve 120 months in federal prison to be immediately followed by five years of supervised release.
Between February 2017 and February 2019, Allen distributed cocaine base or “crack” for a crack distribution ring operating in the La Marque and Texas City areas. He was held responsible for 2.224 kilograms of crack cocaine.
Allen will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Safe Streets and Violent Crimes Task Force in conjunction with the La Marque Police Department conducted the investigation. Assistant U.S. Attorney Kenneth A. Cusick prosecuted the case.
South Texan imprisoned in cryptocurrency purchase and child pornography downloadRead the Press Release
McALLEN, Texas – A 32-year-old Edcouch resident has been sentenced for receiving child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Servando Diaz pleaded guilty March 19.
U.S. District Judge Drew Tipton has now sentenced Diaz to 144 months. At the hearing, the court also heard additional information including that Diaz admitted to downloading child pornography to numerus personal devices for his own use online and offline. In addition, the court heard that his collection of child pornography included a wide range of content including videos that ranged in length, sadistic and masochistic files and bestiality. Diaz was further ordered to pay a $5,000 special assessment and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
From approximately Nov. 30, 2022, to approximately Dec. 7, 2022, Diaz downloaded child pornography from links he purchased by utilizing cryptocurrency.
Law enforcement conducted an ongoing investigation of offenders engaging in a commercial sexual exploitation ring where child pornography was sold and paid for through cryptocurrency. In return, links were provided to the purchaser via MEGA, a file hosting service.
Authorities identified an individual who purchased child pornography directly from the commercial sexual exploitation ring through their transaction information. An open-source database check confirmed the deposit address in Edcouch belonged to Diaz.
On Aug. 15, 2023, Diaz agreed to an interview with law enforcement and admitted to viewing, purchasing and downloading child pornography for approximately 10 years.
Diaz utilized various platforms including Telegram and MEGA to purchase the links with cryptocurrency. Additionally, Diaz paid approximately $50-150 via PayPal to gain access to a private group known to distribute child pornography on either Discord or Telegram.
Law enforcement conducted a forensic search on his digital devices which resulted in the discovery of 360 videos and 178 image files depicting child pornography including prepubescent children engaging in sexually explicit conduct.
Diaz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation.
Assistant U.S. Attorney Alexa D. Parcell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
PetroChina International America to pay fine, forfeiture for export violationsRead the Press Release
HOUSTON – PetroChina International America Inc. (PCIA) has entered into an agreement to pay a fine and monetary forfeiture totaling $14.5 million for violations of U.S. export law, announced U.S. Attorney Alamdar S. Hamdani along with Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) - Houston, and Special Agent in Charge Trey McClish, Department of Commerce Bureau of Industry and Security (BIS) Office of Export Enforcement (OEE) - Dallas.
PCIA is a subsidiary of PetroChina International Co. Ltd., one of the largest oil and gas companies in the world. It was incorporated in New Jersey in 2003 and is principally located in Houston.
PCIA agreed to pay the fine and forfeiture after authorities discovered evidence they had reported inaccurate information in the Automated Export System (AES), an electronic database that exporters use to declare international exports from the United States. Specifically, PCIA misclassified more than $32 million of ultra-low-sulfur diesel fuel as mineral oil mix for certain export transactions to Mexico that took place in 2019 and 2020.
“From its bustling port to its proximity to Central and South America, Houston is a lucrative hub for international commerce. The city’s continued growth depends on companies playing by the rules, in this case export and import regulations,” said Hamdani. “The potentially false or misleading valuations PetroChina International America input into a government database gave it an unfair competitive advantage while also harming the integrity of global trade with nations like Mexico. The $14.5 million forfeiture and fine assessed against PCIA should send a message to all those companies still not playing by the rules – The Southern District of Texas will hold you to account.”
The investigation that led to fine and forfeiture began in December 2019 after Mexican authorities discovered discrepancies between importation documents for a Panamanian oil tanker after it made entry in Port Veracruz, Mexico. Mexican authorities contacted U.S. trade officials for assistance in clarifying the discrepancies.
Authorities conducted a historical analysis of export data PCIA provided, which revealed additional exports that were misclassified and/or undervalued at the time of export and then entered into AES.
“PCIA misclassified or undervalued millions of dollars in petroleum exports using the U.S. electronic database that is trusted throughout the global marketplace for timely, accurate and reliable data and information,” said Dawson. “These actions helped facilitate illegal activity abroad and damaged America’s reputation as a leader in global trade. The entry of false or misleading information into export systems is a serious law violation. Working in conjunction with our domestic and international partners, we were able to uncover these violations of U.S. export law and levy a fine and forfeiture totaling $14.5 million to level the playing field for competitors and deter similar unlawful conduct in the future.”
“Today’s forfeiture is a prime example of the U.S. government’s strong interagency partnerships working together to effectively target entities engaging in illicit activities abroad, especially those attempting to use the country’s own systems to facilitate that activity,” said McClish. “BIS will continue to identify and disrupt those who attempt to profit from and circumvent U.S. export controls and regulations.”
PCIA has fully cooperated with the investigation into the export violations and has enhanced its compliance program. It has agreed to provide the U.S. Attorney’s Office with details of its efforts in a yearly report for the three-year-term.
HSI, BIS and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is handling the matter along with HSI’s embedded counsel.
The U.S. Attorney’s Office and HSI Houston actively encourage the submission of voluntary self-disclosures (VSDs) from parties who suspect they may have violated U.S export law. VSDs serve as a strong indication of a party's commitment to complying with U.S. export law and regulatory controls. To prevent unfair trade and ensure a level playing field, HSI also encourages the reporting of suspected or known third-party violations of U.S. export law. To self-disclose a potential violation or report a suspected third-party violation, please contact HSI.
Local narcotics supplier gets hefty sentenceRead the Press Release
HOUSTON – A 21-year-old Houston resident has been handed a significant sentence for his role in a poly-drug distribution conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Dhevani Mitchell pleaded guilty Dec. 4, 2023.
U.S. District Judge George C. Hanks Jr. has now sentenced Mitchell to 324 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted that Mitchell’s conduct had destroyed lives and families and was a threat to the community. The court also found Mitchell continued to deal drugs and “do harm” after having multiple chances and would continue to do so if given the opportunity.
At the time of his plea, Mitchell admitted to supplying large quantities of meth, cocaine and fentanyl from his residence in February and March 2021.
During a search of the residence March 31, 2021, authorities seized a total of approximately 10.9 kilograms of meth, 1.267 kilograms of China white heroin/gray death heroin, 260 grams suspected fentanyl, large quantities of various pressed pills and five firearms. While securing the location, they found Mitchell in a back bedroom along with a black Stoeger Cougar 9-millimeter handgun under a pillow next to him. They also discovered a Remington 5501 .22 caliber rifle and ammunition.
Mitchell will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative with the assistance of Houston Police Department and the Texas Department of Public Safety. These such cooperative matters provide for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Michael Day and Christine Lu are prosecuting the case.
Houston dental clinic operator heads to prison for role in $6M pediatric fraud schemeRead the Press Release
HOUSTON - A 68-year-old man has been sentenced for orchestrating a $6 million Medicaid fraud and kickbacks scheme, announced U.S. Attorney Alamdar S. Hamdani.
Rene Fernandez Gaviola pleaded guilty Jan. 26.
Chief U.S. District Judge Randy Crane has now ordered Gaviola to serve 120 months in federal prison to be immediately followed by three years of supervised release. In addition, Judge Crane ordered Gaviola to pay $4,908,957.89 in restitution to Medicaid and a personal money judgement of $2,996,092. In handing down the sentence, the court noted Gaviola involved his own son in his “crooked” fraud scheme. Judge Crane also emphasized that Gaviola had failed to make any attempt to pay back restitution even though he has $2 million in assets stashed away in the Philippines.
Gaviola was the operator of Floss Family Dental Care clinic in Houston. From 2018 until April 2021, Gaviola submitted fraudulent claims to Medicaid for pediatric dental services, including numerous cavity fillings which Floss did not provide or unlicensed individuals provided.
Gaviola illegally employed his son, who was not a licensed dentist, to provide dental services to Medicaid-insured children and occasionally operated Floss without any licensed dentists present. Floss then fraudulently billed Medicaid for these services.
Gaviola also paid kickbacks to marketers and caregivers of Medicaid-insured children to bring them to Floss for dental services. Ultimately, he admitted to laundering Medicaid monies from the Floss business bank account to his personal bank account in several transactions exceeding $100,000.
From 2019 to 2021, the dental clinic billed Medicaid nearly $6.9 million in claims for pediatric dental services. Medicaid paid approximately $4.9 million on those claims.
Gaviola’s co-conspirator, Mia Diaz, 48, Cleveland, a manager at Floss, was previously sentenced to 21 months imprisonment followed by three years of supervised release April 16.
Previously released on bond, Gaviola was taken into custody following the sentencing where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI, Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kathryn Olson and Lauren Valenti prosecuted the case.
Trafficker sent to prison for transporting 18 kilos of cocaine across borderRead the Press Release
McALLEN, Texas – A 41-year-old woman from Mission has been sentenced for importing cocaine from Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Brenda Bazaldua-Mariscal pleaded guilty May 22, 2023.
Chief U.S. District Judge Randy Crane has now ordered Bazaldua-Mariscal to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence about the organizational structure of the drug trafficking organization. In handing down the sentence, Judge Crane noted her a previous 60-month sentence.
On Aug. 12, 2021, Bazaldua-Mariscal approached the Pharr Port of Entry driving a Lincoln MKX. Authorities noted inconsistencies in her travel itinerary and referred her to secondary inspection. There, a K-9 alerted to the odor of narcotics in the front of the vehicle.
Authorities then discovered the front bumper was lined with a non-factory compartment containing 16 bundles of cocaine with a total weight of 18 kilograms and an estimated street value of $234,000.
Further investigation revealed text messages indicating Bazaldua-Mariscal was aware she was importing narcotics.
She will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Jose A. Garcia prosecuted the case.
Texas medical center institutions agree to pay $15M record settlement involving concurrent billing claims for critical surgeriesRead the Press Release
HOUSTON – Baylor St. Luke’s Medical Center (BSLMC), Baylor College of Medicine (BCM) and Surgical Associates of Texas P.A. (SAT) have jointly agreed to pay $15 million to resolve claims they billed for concurrent heart surgeries in violation of Medicare teaching physician and informed consent regulations, announced U.S. Attorney Alamdar S. Hamdani.
BSLMC is a joint venture between CommonSpirit Health, a national hospital chain, and BCM, a medical school in Houston. BSLMC operates a teaching hospital, formerly known as St. Luke’s Episcopal Hospital, in its Medical Center. BCM employs teaching physicians and residents who perform services at BSLMC, including Dr. Joseph Coselli, 71, Houston, and Dr. Joseph Lamelas, 63, Miami, Florida. SAT is a medical practice group affiliated with various cardiothoracic surgeons, including Dr. David Ott, 77, Houston.
The investigation began Aug. 7, 2019, upon the filing of a sealed qui tam lawsuit aka whistleblower complaint. The whistleblower alleged Coselli, Lamelas and Ott - three heart surgeons who performed at St. Luke’s - engaged in a regular practice of running two operating rooms at once and delegating key aspects of extremely complicated and risky heart surgeries to unqualified medical residents. The heart surgeries at issue are some of the most complicated operations performed at any hospital including coronary artery bypass grafts, valve repairs and aortic repair procedures. These surgeries typically involve opening a patients’ chest and placing the patient on the bypass machine for some portion of time.
Medicare regulations dictate when teaching physicians can leave the operating room for any operation, no matter how complex.
The settlement resolves allegations that from June 3, 2013, to Dec. 21, 2020, Ott, Coselli and Lamelas violated these rules in various respects. Surgeons often ran two operating rooms at once and failed to attend the surgical “timeout”— a critical moment where the entire team would pause and identify key risks to prevent surgical errors, according to the allegations.
Additionally, surgeons would allegedly enter a second or occasionally a third operation without designating a backup surgeon. At times, the surgeons allegedly hid these activities by falsely attesting on medical records they were physically present for the “entire” operation. In addition, medical staff did not inform patients the surgeon would be leaving the room to perform another operation.
“Patients entrusted these surgeons with their lives - submitting to operations where one missed cut is the difference between life and death,” said Hamdani. “Allegedly, the patients were unaware their doctor was leaving for another operating room. This settlement reaffirms the importance of Medicare requirements governing surgeon presence and ensuring that no physician - no matter how prominent or successful - can skirt around the rules.”
“The complete disregard for patient safety exhibited by these three doctors put patients at risk and violated Medicare regulations for their own convenience and greed,” said Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This record settlement demonstrates our steadfast commitment to protecting Medicare beneficiaries and working with our law enforcement partners to utilize all the tools in our arsenal to hold accountable those who steal from Medicare and other federal health care programs.”
“Any time any one of us goes under the knife as a vulnerable patient, we implicitly trust that the surgeons and medical professionals have our best interest at heart, especially here in Houston’s world-renowned hospitals,” said Special Agent in Charge Douglas Williams of the FBI - Houston field office. “In this case, doctors gambled with their patients’ care, during complicated open-heart surgeries no less, compromising quality of care over quantity and then falsely billed Medicare for reimbursement of services they improperly delegated. We hope today’s civil settlement announcement represents accountability for doctors and hospitals everywhere.”
The $15 million recovery is the largest settlement to date involving concurrent surgeries.
The False Claims Act entitles the private whistleblower who commences the suit to a portion of the recovery. In this case, the whistleblower will receive $3,075,000.
The U.S. Attorney’s Office, DHHS-OIG and FBI conducted the investigation. Assistant U.S. Attorneys Brad Gray and Andrew Bobb are handling the case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Possession of multi-kilos of meth lands three in prison for significant timeRead the Press Release
McALLEN, Texas – Three residents of San Antonio have been sentenced following their convictions of conspiring to possess with the intent to distribute a total of approximately five kilograms of meth, announced U.S. Attorney Alamdar S. Hamdani.
Lucille Nicole Mendoza, 43, Debra Ann Sauceda, 54, and Julian Santiago Espinoza Jr., 32, pleaded guilty Jan. 5, 2022.
Chief U.S. District Judge Randy Crane has now ordered Mendoza and Espinoza to serve a total of 70 months each, while Sauceda received a 60-month-term of imprisonment. All were further ordered to serve three years of supervised release following their term of incarceration.
On May 31, 2020, law enforcement encountered the three as they attempted to cross into the United States from the Pharr Port of Entry in a GMC Yukon. At that time, authorities sent them to secondary inspection, which resulted in the discovery of approximately five kilograms of meth hidden in the battery.
All have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Matthew Phelps prosecuted the case.
Local couple sentenced after benefitting from forced laborRead the Press Release
McALLEN, Texas – Two Edinburg residents have been sentenced following their admissions of benefitting from a victim’s free labor which allowed the couple to have gainful employment, announced U.S. Attorney Alamdar S. Hamdani.
Eduardo Javier Gomez, 32, and his former partner Margarita Alvarez, 42, pleaded guilty March 1, 2023.
U.S. District Chief Judge Randy Crane has now imposed a 70-month-term of imprisonment for Gomez, while Alvarez received two years of probation. Gomez must also serve three years of supervised release following his sentence.
From June 24 until July 8, 2021, Gomez and Alvarez benefitted from a victim’s free labor which allowed the couple to have gainful employment. Gomez also earned money from a fireworks stand where the victim provided free labor.
Law enforcement discovered the victim had been illegally smuggled to the Rio Grande Valley. Gomez was holding her against her will. Gomez was requesting further payment from family members in exchange for the victim being moved further north. When the family was unable to pay, the couple took the victim’s phone and forced her to work as a nanny and housekeeper in the home Gomez and Alvarez shared. Gomez also managed a fireworks stand where she forced the victim to work.
They never paid her.
Two days after learning of the victim, authorities were able to locate and rescue her.
Gomez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Alexa D. Parcell, Sherri Zack and Kim Leo prosecuted the case.
Former officer receives 20 years for raping woman while on dutyRead the Press Release
HOUSTON – A 29-year-old Houston and former officer for the Arcola Police Department has been sentenced following his conviction for obstruction of justice and violation of civil rights, announced U.S. Attorney Alamdar S. Hamdani.
Hector Aaron Ruiz pleaded guilty Jan. 19.
U.S. District Judge Charles Eskridge has now sentenced Ruiz to a total of 20 years in federal prison to be immediately followed by five years of supervised release.
“Ruiz was not only a predator but a predator with a badge,” said Hamdani. “During a traffic stop, he raped a young woman he was sworn to serve and to protect, violently breaking a fundamental promise law enforcement makes with any community. The U.S. Attorney’s office is relentless in its pursuit to bring to justice officers who betray their uniform and oaths, committing heinous acts against members of our community. Today’s sentence is the fruit of that pursuit.”
“Hector Ruiz mistakenly believed he was protected by his uniform and badge and operated as a calculating predator who targeted and sexually assaulted his victim during a traffic stop,” said FBI Houston Special Agent in Charge Douglas Williams. “We thank the courageous woman who bravely confronted Mr. Ruiz in court to ensure he faced justice for his crime against her. As law enforcement officers, there’s nothing we despise more than those who disgrace the badge, betray the oath to protect our community and violate the public’s trust.”
On Nov. 16, 2019, Ruiz was on duty and pulled over a 23-year-old woman to conduct a traffic stop in the middle of the night. He told her to “convince” him to not take her to jail, then took her driver’s license and ordered her to follow him. When she tried to drive off, Ruiz pulled her over again and repeated his command. He eventually drove her to a neighborhood, which was under construction at the time, forced her to drink alcohol and coerced her to have sex with him.
The victim came forward the same day and identified Ruiz as her rapist.
The investigation revealed Ruiz had disabled his body microphone and the active recording system in his police cruiser. Authorities also found a text message the victim sent to a friend while Ruiz was making her follow him. In it, she said she thought she was going to die
Forensic analysis further confirmed Ruiz was her rapist.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Texas Rangers conducted the investigation. Assistant U.S. Attorneys Sharad S. Khandelwal and Sebastian Edwards prosecuted the case.
Illegal sale of firearms and ammunition buys prison time for local felonsRead the Press Release
McALLEN, Texas – Two Rio Grande City residents have been sentenced for being felons in possession of firearms and for attempting to sell multiple firearms and ammunition, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Maria Salazar Jr., 29, and Filiberto Martinez Jr., 42 pleaded guilty on Oct. 20, 2023.
U.S. District Judge Ricardo H. Hinojosa has now imposed a 30-month term of imprisonment for Salazar, while Martinez received 22 months. Both must also serve 2 years of supervised release following their sentences. At the hearing, the Court heard additional evidence including that both Salazar and Martinez had federal convictions for smuggling ammunition. In handing down the prison terms, Judge Hinojosa noted their prior convictions.
On March 2, 2023, Salazar sold three AK-47 variant rifles, one AR-15 variant rifle and approximately 5,900 rounds of ammunition to an ATF undercover agent.
The investigation revealed Martinez stored three of the firearms for Salazar prior to the sale.
Salazar and Martinez are both prohibited from possessing a firearm or ammunition following their respective federal convictions for illegally smuggling ammunition to Mexico.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
COVID-19 stimulus check theft sends Houston resident to prisonRead the Press Release
HOUSTON – A 50-year-old man has been sentenced for committing fraud in connection with stimulus checks, announced U.S. Attorney Alamdar S. Hamdani.
Ndem Oduu pleaded guilty March 14.
U.S. District Judge Charles R. Eskridge has now ordered Oduu to serve 45 months in federal prison to be immediately followed by three years of supervised release. Oduu was also ordered to pay restitution in the amount of $1,867. At the hearing, the court heard additional evidence that showed Oduu possessed thousands of pages of documents in his apartment related to his efforts to defraud the government through fraudulent loans and tax credits. In handing down the sentence, the court noted he hoped Oduu would lead a productive life upon release.
At the time of his plea, Oduu admitted to appropriating a victim’s Economic Impact Payment, also referred to as a stimulus check, in the amount of $1,200 and depositing the check into his own account.
The U.S. government offered these payments to the general public in response to the economic harm of the COVID-19 pandemic.
Oduu has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Social Security Administration-Office of Inspector General and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.
Attack on officer in downtown Houston sends local man to prisonRead the Press Release
HOUSTON – A 38-year-old Houston resident has been sentenced for assault of a federal officer after damaging two downtown buildings, announced U.S. Attorney Alamdar S. Hamdani.
Justin Wade Prophet pleaded guilty March 25.
U.S. District Judge David Hittner has now ordered Prophet to serve 150 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted Prophet’s childhood and mental health challenges made this sentencing one of the most difficult cases he has had. However, the court emphasized the seriousness of the offense warranted a higher term of imprisonment. The court felt the sentence was appropriate given the need to enforce respect for the law and to protect the public from future crimes.
On Oct. 26, 2023, Prophet was outside the federal courthouse in Houston during the early morning hours when he smashed a window with a long metal pole. He then walked to another building across the street, broke another window with the same pole and gained entry. While inside, he attempted to assault an individual who was on his way to work. He also damaged additional property.
Authorities from the federal courthouse confronted him shortly thereafter, at which time Prophet struck one of them with the pole. The officer shot Prophet in his lower extremities. Law enforcement immediately took Prophet into custody and transported him to the hospital.
Prophet will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Homeland Security - Federal Protective Service and Houston Police Department conducted the investigation. Assistant U.S. Attorney Barri Dean handled the sentencing.
Mexican citizen sent to prison after sharing child pornography on peer-to-peer networkRead the Press Release
BROWNSVILLE, Texas – A 33-year-old Mexican national residing illegally in the United States has been sentenced for possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Juan Francisco Meza-Chavez pleaded guilty Sept. 5, 2023.
U.S. District Judge Rolando Olvera has now ordered Meza-Chavez to serve 97 months in federal prison. At the hearing, the court considered victim impact statements and ordered $45,000 in restitution to be paid to them. Meza-Chavez was further ordered to serve 20 years of supervised release to be served following the completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
The investigation began in May 2022 following an investigation into the BitTorrent network in which they were able to identify the IP addresses of individuals sharing child pornography. They linked one of the IP addresses to Meza-Chavez.
On Oct. 13, 2022, law enforcement executed a search warrant at Meza-Chavez’s residence. There, authorities seized numerous electronic devices capable of storing child pornography.
A forensic analysis of the devices resulted in the discovery of 40 videos and 11 images of child pornography.
Meza-Chavez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Drug courier imprisoned for attempting to smuggle 23 pounds of cocaine through POERead the Press Release
BROWNSVILLE, Texas – A 36-year-old U.S. citizen residing in Matamoros, Mexico, has been sentenced for possession with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Gilberto Lugo pleaded guilty Feb. 15, 2023.
U.S. District Judge Rolando Olvera has now ordered Lugo to serve 120 months in federal prison to be immediately followed by five years of supervised release. In handing down the prison term, Judge Olvera noted Lugo had a criminal history that included a felony assault upon a family household member.
On July 21, 2022, Lugo drove into the United States through the Veterans Port of Entry (POE) in Brownsville. Law enforcement noticed he appeared nervous and avoided eye contact. He was also the sole occupant and owner of the vehicle. Lugo claimed he lived in Matamoros and was making entry to search for a “welding course.” During inspection of his vehicle, law enforcement found 10.46 kilograms (or 23 pounds) of cocaine behind the door panels.
As the investigation continued, authorities discovered Lugo had owned the vehicle since December 2021 and had been crossing POE bridges since at least January 2022. A search of Lugo’s cellphone revealed photos of different vehicles crossing the POE, large bundles of cash and zip-lock baggies of a white powder believed to be cocaine.
Lugo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Oscar Ponce prosecuted the case.
Rio Grande City resident sent to prison after attempt to transport over $370,000 of marijuanaRead the Press Release
McALLEN, Texas – A 41-year-old man has been sentenced following his conviction of possession with intent to distribute 100 kilograms or more of marijuana, announced U.S. Attorney Alamdar S. Hamdani.
Jeremiah Hawthorne pleaded guilty May 5, 2021.
Chief U.S. District Judge Randy Crane has now ordered Hawthorne to serve 60 months in federal prison to be immediately followed by four years of supervised release.
On Sept. 9, 2020, law enforcement observed a suspicious GMC Yukon approaching the Rio Grande River at an area known for drug trafficking. Shortly thereafter, they noticed the vehicle returning from the river, then heading north. At that time, the vehicle appeared to be riding low as if it was carrying a heavy load.
Authorities attempted to conduct a traffic stop. However, the vehicle rolled over after trying to reverse in uneven terrain. The vehicle’s operator - Hawthorne - then attempted to flee on foot. Authorities successfully apprehended him after he had physically resisted. Inside of the vehicle, law enforcement discovered multiple bundles of marijuana weighing approximately 214 kilograms.
Hawthorne will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney Matthew Phelps prosecuted the case.
On Jan. 24, 2025, this case was dismissed with prejudiceRead the Press Release
HOUSTON – A Houston doctor has been indicted for obtaining protected individual health information for patients that were not under his care and without authorization, announced Alamdar S. Hamdani.
The case against Ethan Haim, 34, Dallas, has now been unsealed, and he is set to make his initial appearance before U.S. Magistrate Yvonne Y. Ho in Houston at 2 p.m.
The four-count indictment alleges Haim obtained personal information including patient names, treatment codes and the attending physician from Texas Children’s Hospital’s (TCH) electronic system without authorization. He allegedly obtained this information under false pretenses and with intent to cause malicious harm to TCH.
According to the indictment, Haim was a resident at Baylor College of Medicine and had previous rotations at TCH as part of his residency.
In April 2023, Haim allegedly requested to re-activate his login access at TCH to access pediatric patients not under his care. The indictment alleges he obtained unauthorized access to personal information of pediatric patients under false pretenses and later disclosed it to a media contact.
If convicted, Haim faces up to 10 years in federal prison and a $250,000 maximum possible fine.
FBI conducted the investigation. Assistant U.S Attorney Tina Ansari 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.
Justice Department secures agreement with Texas county to make election website accessible to people with disabilitiesRead the Press Release
HOUSTON — Colorado County has entered into a settlement agreement which resolves findings it violated Title II of the Americans with Disabilities Act (ADA) by maintaining an election website that discriminates against individuals with vision or manual disabilities, announced U.S. Attorney Alamdar S. Hamdani.
“The right to vote is a right all American citizens exercise, including individuals with visual or manual disabilities,” said Hamdani. “Election websites provide crucial voting information and must be accessible so that voters with disabilities have equal access to information.”
The county’s election website provides essential information about how to vote, such as registration requirements, identification requirements and voting information for people with disabilities. The website also links to other critical information, including details about early voting and voting on election day.
Under the settlement agreement, Colorado County agreed to make all future and existing online election content accessible to people with disabilities. The county also agreed to hire an independent auditor to evaluate the accessibility of their election website’s content, provide notice to visitors and users of the website to solicit comments and requests about any accessibility barriers, designate an employee to coordinate its efforts, revise its procedures and train relevant personnel.
This investigation is part of the Department of Justice’s ADA Voting Initiative, which safeguards the voting rights of individuals with disabilities. To read more about the ADA and how it applies to voting, please visit Voting and Polling Places. This settlement agreement is also part of the Department of Justice’s Tech Equity Initiative to combat disability discrimination that occurs through technology such as websites and mobile apps.
Assistant U.S. Attorney (AUSA) Elizabeth Karpati handled the matter.
Baytown man admits to making bomb threatsRead the Press Release
HOUSTON – A 37-year-old local man has entered a guilty plea to three counts of sending threatening communications through interstate commerce, announced U.S. Attorney Alamdar S. Hamdani.
Joshua Guadalupe Magana admitted to sending bomb threats on multiple occasions to the White House, FBI and other organizations over the course of several years. Law enforcement had previously warned him that making such threats is a crime and could subject him to imprisonment.
Specifically, Magana pleaded guilty to the charge related to a threat made June 4, 2019, when he called the FBI and said he would blow up the White House. “There is a bomb. I’m going to blow up the White House,” he stated and then hung up. Magana admitted to making the call and claimed he picked the White House because it was the most important building he could think of and wanted a “big, serious” response.
Magana contacted the White House directly Dec. 15, 2021, and sent an email with the subject line reading “Contact the President” and a message stating “Bomb the White House.” On Feb. 27, 2022, Magana contacted the White House again and sent a similar threatening email.
“We take all threats seriously,” said Hamdani. “People cannot convey their political or social disagreements through threats or violence.”
U.S. District Judge Lee H. Rosenthal will impose sentencing Oct. 2. At that time, Magana faces up to five years in federal prison.
He has been and will remain in custody pending that hearing.
Secret Service and FBI conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.
SDTX recognizes World Elder Abuse Awareness DayRead the Press Release
HOUSTON – June 15 is World Elder Abuse Awareness Day (WEAAD), and the Southern District of Texas (SDTX) continues its aggressive prosecution and community relations efforts to address the issue, announced U.S. Attorney Alamdar S. Hamdani.
Since 2006, people have commemorated WEAAD to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, Hamdani emphasized the importance of awareness, education and prosecution.
“The eldest generation includes, for many of us, our grandparents, parents, aunts and uncles,” said Hamdani. “They were our teachers, coaches, mentors and bosses. And now they are too often targets of opportunistic criminals who try to advantage of their trust or their physical or mental sunset. Protecting and standing up for the most vulnerable of our citizens is why we come to work each day. That mission has particular resonance when the cases we work on involve elderly victims.”
Hamdani also provided additional information and guidance in a public service announcement.
Elder abuse is an act that knowingly, intentionally or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver or other person in a trust relationship. Such harm may be financial, physical, sexual or psychological.
The SDTX continues to work with federal, state and local law enforcement partners to investigate and prosecute elder abuse crimes.
Just last month, the office charged several members of a religious-based company who allegedly took nearly the entire retirement savings of a WWII veteran in his 90s. A mother and son were also charged for purportedly tricking an elderly couple out of $1M as were romance scammers who allegedly targeted the elderly in $3M fraud. Meanwhile, recent convictions include two in McAllen in a multimillion-dollar daycare fraud scheme, while the leader of a nationwide fraud scheme targeting elderly victims is now serving a 188-month sentence and another was sentenced to the max for his role in laundering scam proceeds.
The SDTX also continues its community relations efforts to promote understanding of the important issue of elder fraud.
In April, SDTX personnel joined the U.S. Postal Inspection Service for an elder fraud prevention seminar a local church had hosted. Participants heard about common fraud scripts and tell-tale signs of a scam as well as the types of cases SDTX prosecutes, the limits of prosecution and the importance of sharing information about fraud schemes to try to prevent victimization. Several church members who had been victimized by telemarketing scams also shared their stories. Another similar seminar is expected in the future.
In addition, on July 16, SDTX personnel will join the Treasury Inspector General for Tax Administration for a joint presentation at another local church. Again, the focus of the presentation will be common fraud scripts and tell-tale signs of a scam as well as what to do if you or a loved one has fallen victim to a scam.
The SDTX is part of the Transnational Elder Fraud Task Force which marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations and networks responsible for these crimes, this initiative provides the public with information to guard against the most common schemes, like tech support fraud and romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration impostor schemes, scammers impersonate government administrators and falsely report suspicious activity to request that the victims provide their Social Security number for confirmation. In tech support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer to “confirm” the non-existent problem, then demand large sums of money for unnecessary services. In lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties or taxes before they can claim their prizes.
To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
Man sentenced for over $5.6M international advance-fee schemeRead the Press Release
HOUSTON - An Indiana man has been ordered to federal prison for his role in an international advance-fee scheme orchestrated from Nigeria that defrauded victims worldwide of over $5.6 million, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for 45 minutes before convicting Tochukwu Nwosisi, 52, Indianapolis, Indiana, following a six-day trial March 4 of conspiracy to commit money laundering and concealment money laundering.
U.S. District Judge Alfred H. Bennett has now ordered Nwosisi to serve a total of 36 months in federal prison to be immediately followed by two years of supervised release. He must also pay $905,945 in restitution. In handing down the sentence, the court noted Nwosisi was a knowing, willing participant in a criminal scheme with very real impacts to victims around the world, stating that “today is the day for accountability.”
From at least February 2015 to January 2018, Nwosisi participated in an advance-fee scheme involving fraudulent offers of investment funding and inheritances to victims around the world. Nwosisi’s Nigeria-based co-conspirators induced victims to make large wire payments to bank accounts in the United States on the false belief that payment of the purported advance fees was necessary before the bank would release their funding or inheritance. Nwosisi served as a money launderer who accepted victim funds into his U.S.-based bank accounts and directed the proceeds to the ringleaders in Nigeria.
The FBI and Department of State – Office of Inspector General conducted the investigation.
Assistant U.S. Attorney Christian Latham prosecuted the case along with Trial Attorney Philip Trout of the Criminal Division’s Fraud Section.
Man Sentenced for over $5.6M International Advance-Fee SchemeRead the Press Release
An Indiana man was sentenced today to three years in prison for his role in an international advance-fee scheme orchestrated from Nigeria that defrauded victims worldwide of over $5.6 million.
According to court documents and evidence presented at trial, from at least February 2015 to January 2018, Tochukwu Nwosisi, 52, of Indianapolis, participated in an advance-fee scheme involving fraudulent offers of investment funding and inheritances to victims around the world. Nwosisi’s Nigeria-based co‑conspirators induced victims to make large wire payments to bank accounts in the United States on the false belief that payment of the purported advance fees was necessary before the bank would release their funding or inheritance. Nwosisi served as a money launderer who accepted victim funds into his U.S.-based bank accounts and directed the proceeds to the ringleaders in Nigeria.
A federal jury in Houston convicted Nwosisi on March 4 of conspiracy to commit money laundering and concealment money laundering.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas; Special Agent in Charge Douglas A. Williams Jr. of the FBI Houston Field Office; and Special Agent in Charge Christopher Hileman of the Department of State Office of Inspector General (DOS-OIG) made the announcement.
The FBI and DOS-OIG investigated the case.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christian Latham for the Southern District of Texas prosecuted the case.
Houstonian admits to filing over $500,000 in fraudulent disaster relief loansRead the Press Release
HOUSTON – A 26-year-old woman has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
From March 2020 until June 2021, Khalia Douglas conspired with others to submit false and fraudulent applications to the Federal Emergency Management Agency (FEMA), Small Business Administration (SBA), the U.S. government and a bank for financial assistance.
As part of her plea, Douglas admitting to using her Instagram account “GoGettaKaee” to post multiple stories advertising her involvement in filing fraudulent SBA COVID-19 Economic Injury Disaster Loan (EIDL) applications. Such posts include “SBA is back open. $350 for method. Yes im doing applications $100 upfront & $2k when your money hit. You’ll need a real bank account.”
Douglas accepted payment for her services via CashApp where her clients would make payments to her and send a screenshot of the completed payment as proof.
She also submitted false EIDL applications for herself and false Paycheck Protection Program (PPP) applications for another.
Further investigation revealed Douglas filed eight FEMA disaster assistance applications related to Hurricane Laura.
Additionally, Douglas committed several other fraudulent acts like filing false unemployment benefits in Kansas, using another person’s name to rent her apartment and using another person’s bank account to deposit counterfeit checks.
Authorities discovered her phone and computer contained a multitude of various documents and discussions of fraud in text messages, emails relating to fraudulent applications, false tax documents, images of counterfeit government identification documents and more.
Due to her actions, the EIDL, PPP and the bank lost a total of $351,007 with an attempted loss amount of $514,415.
Douglas received approximately $23,775 for her services.
U.S. District Judge Alfred H. Bennett has set sentencing for Sept. 26. At that time, Douglas faces up five years in federal prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending sentencing.
The Department of Homeland Security-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.