Southern District of Texas
Press releases recorded for this federal judicial district.
Laredo resident charged with possession of machine gunRead the Press Release
LAREDO, Texas – A 27-year-old man has been indicted for possession of a machine gun, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury has now returned a one-count indictment against Francisco Isaias Rodriguez. He is expected to appear for his arraignment before a U.S. magistrate judge in the near future.
The criminal complaint alleges on March 12, a member of law enforcement attempted to stop a truck for a traffic infraction. Rodriguez allegedly exited the truck seconds before the stop and fled from the scene on foot.
It is alleged during the subsequent chase, Rodriguez resisted arrest, ignored commands from authorities and allegedly threw a small bag he carried around his shoulder over a fence and into a backyard.
Law enforcement later recovered the bag from the backyard which allegedly contained a Glock 9-millimeter pistol equipped with a machine gun conversion device, commonly known as a “switch.”
According to the complaint, this device altered the function of the firearm to shoot more than one round with a single pull of the trigger, making the firearm a fully-automatic weapon. The bag also allegedly contained an extended magazine with 40 rounds of 9-millimeter ammunition.
If convicted, Rodriguez faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Laredo Police Department conducted the investigation. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
This case is being prosecuted as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country. 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.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Domestic trafficker admits to possession with intent to distribute over 2,000 counterfeit pillsRead the Press Release
LAREDO, Texas – A 40-year-old resident of Lake Charles, Louisiana, has pleaded guilty to conspiring to possess with intent to distribute more than 40 grams of fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
Walter Wellington Somers admitted he possessed more than 2,000 pills containing fentanyl.
On Dec. 23, 2023, law enforcement responded to a call from the Embassy Suites Hotel in Laredo. Hotel staff found what they believed to be drugs in one of the rooms while trying to clean it.
Law enforcement arrived on scene and observed Somers attempting to get back into the room. He claimed he was only there to pay for a television he had broken.
Authorities conducted a search of the hotel room and discovered a silver zipper bag containing several clear plastic bags with a large number of small blue circular pills. They were imprinted with an “M-30” logo. Law enforcement confirmed Somers had been staying in the room and checked out earlier in the day before returning to the hotel.
A laboratory analysis later determined there were a total of 2,319 pills which contained fentanyl.
The investigation revealed Somers had traveled from Louisiana to meet a friend in South Texas. In phone messages between the two, they discussed collecting money and acquiring narcotics. In one audio message, the individual told Somers if he sent $700 or $800 that evening, someone would front them 3,000 pills.
The friend also sent Somers a video of him holding three bags of blue M-30 pills that were identical in size, shape and packaging to the pills seized Dec. 23, 2023.
“One pill can kill – that’s the mantra of law enforcement when discussing the dangers of fentanyl-laced pills,” said Hamdani. “Laredo’s children are dying because of pills similar to the ones Somers possessed. This case exemplifies why we must educate our communities not just on the dangers of fentanyl, but how this lethal drug is disguised to fool people into believing it’s nothing more than ordinary prescription medication.”
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, Somers faces up to 40 years in federal prison and a possible $5 million maximum fine.
Somers will remain in custody pending that hearing.
The Drug Enforcement Administration and Laredo Police Department conducted the investigation. Assistant U.S. Attorneys Brittany Jensen and Brian Bajew are prosecuting the case.
This case is being prosecuted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country. 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.
More information on the dangers of fentanyl can be found on the DEA’s website. #OnePillCanKill
Bus passenger convicted for smuggling over $1.2M of pure meth in 48 jars of lardRead the Press Release
LAREDO, Texas – A 62-year-old Mexican man has pleaded guilty for attempting to smuggle 63.85 kilograms of pure meth, announced U.S. Attorney Alamdar S. Hamdani.
On Jan. 10, Eleazar Vilchiz Alonso applied for entry into the United States at the Lincoln-Juarez Bridge in Laredo while on board a commercial bus. At primary inspection, law enforcement discovered several dozen jars of lard in his luggage.
As part of an agricultural inspection, authorities discovered a sandy substance within the lard which tested positive for meth. Law enforcement recovered a total of 48 jars in several suitcases. Alonso stated he was going to deliver them to an address in Houston.
Laboratory analysis later confirmed the substance in the jars was 100% pure crystal meth or “ice” totaling 63.85 kilograms with a value of more than $1.29 million.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing July 9. At that time, Alonso faces up to life in federal prison and a possible $10 million maximum fine for each count.
Alonso has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection Office of Field Operations. Special Assistant U.S. Attorney Terence Andrew Check Jr. prosecuted the case.
Local man heads to prison for stealing checks from the mailRead the Press Release
HOUSTON – A 44-year-old Houston resident has been sentenced for bank fraud, announced U.S. Attorney Alamdar S. Hamdani.
Rhett Dean Stringer pleaded guilty Feb. 15, 2022.
U.S. District Judge George C. Hanks has now ordered Stringer to serve 105 months in federal prison to be immediately followed by five years of supervised release. He was also ordered to pay restitution of $1,475 to Amegy Bank and $6,515.27 to Wells Fargo. At the hearing, the court heard evidence detailing Springer’s nine previous felony convictions. In handing down the sentence, Judge Hanks noted Stringer’s sentence is based on the actions of the person he has been, not the person he can be.
“Stringer, a serial mail thief and habitual criminal, possessed over 1,000 stolen checks,” said Hamdani. “One hundred and five months in a federal prison is wholly appropriate for the thousand times he decided to steal from the mail, violating an important and sacred trust, one as old as America - a trust in the U.S. mails.”
Law enforcement arrested Stringer on three different occasions. Each time, he was found in possession of checks that were stolen from the mail. Authorities also found counterfeit ID cards with the names and personal information of others, with Stringer’s photo, as well as credit cards in the names of others and various items of stolen mail.
At the time of his last arrest, Springer was found in possession of over 1,000 checks totaling more than $2.6 million that had been stolen from the U.S. mail. The checks he cashed totaled nearly $8,000.
U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.
41 charged in massive poly-drug indictment linked to cartelRead the Press Release
GALVESTON, Texas – A total of 23 people were taken into custody following the return of a 50-count indictment alleging cocaine, fentanyl, heroin and meth trafficking and related crimes in the Houston and Galveston areas, announced U.S. Attorney Alamdar S. Hamdani.
The indictment alleges they all operated under the overall control of the Jalisco New Generation Cartel.
From Dec. 28, 2018, to April 22, 2020, the conspirators allegedly operated in and out of the Southern District of Texas (SDTX) and distributed drugs smuggled into the United States from Mexico.
The leader of one of these groups – Roque Zamudio-Mendoza, 52, Mexico, was the main source of drugs smuggled into the United States, according to the charges. Other co-conspirators allegedly distributed the narcotics in the Houston and Galveston areas to other locations throughout the United States, including New Orleans, Louisiana; Pensacola, Florida; Atlanta, Georgia; Nashville, Tennessee; and Chicago, Illinois.
During the law enforcement operation that spanned multiple jurisdictions to include the Houston, Arlington, Corpus Christi, Brownsville and McAllen areas in Texas as well as Louisiana, Colorado, Washington and California, authorities arrested a total of 20 people. They join three individuals who were previously in custody. Two are now deceased. Zamudio-Mendoza, who is believed to be in Mexico, and 15 others are still at large and warrants remain outstanding for their arrests.
Some have already made their appearances in federal court before U.S. Magistrate Judge Andrew Edison. Others are set for April 2 at 10 a.m. in Galveston or in Houston April 3 at either 11 a.m. or 2 p.m.
The indictment, returned Dec. 14, 2023, also seeks forfeiture of any illegal proceeds of the alleged crimes, estimated at $10 million. To date, records indicate authorities have seized approximately 550 kilograms of meth, 249 kilograms of cocaine, 34 kilograms of heroin, five kilograms of pentobarbital and 22,600 fentanyl-laced pills. As part of the arrests, they also allegedly found nine firearms and several luxury Rolex watches and large amounts of U.S. currency to include $190,000 seized during a traffic stop in Porter.
All are charged with conspiracy to possess with intent to distribute cocaine, fentanyl, heroin and meth and face up to life in prison. Each is also charged in varying counts to include conspiracy to launder monetary instruments, laundering of monetary instruments, possession with intent to distribute meth, heroin, fentanyl and/or cocaine.
The arrests are the culmination of a 63-month Organized Crime Drug Enforcement Task Forces investigation (OCDETF) dubbed Operation Rainmaker that began in 2019.
The Drug Enforcement Administration and U.S. Marshals Service conducted the OCDETF investigation along with Houston Police Department, Galveston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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. Attorneys Kenneth Cusick and Rick Hanes 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.
Substitute teacher admits to exploiting minor he met onlineRead the Press Release
McALLEN, Texas – A 42-year-old Mission resident has pleaded guilty to coercion and enticement of a minor, announced U.S. Attorney Alamdar S. Hamdani.
Juan Carlos Munoz met a 14-year-old girl from South Carolina on a social media/video chat site. He utilized a fake name and claimed to be a 19-year-old teenager and requested nude photos and videos of the girl.
Local law enforcement in South Carolina were able to determine his true identity and report the allegations to Texas authorities.
On Dec. 16, 2022, they located him at a local high school where he was employed as a substitute teacher. At that time, Munoz admitted to communicating with the minor victim and requesting sexually-explicit photos.
U.S. District Judge Ricardo H. Hinojosa will impose sentencing July 19. At that time, Munoz faces a mandatory minimum of 10 years and up to life in federal prison and a possible $250,000 maximum fine.
Munoz has been and will remain in custody pending sentencing.
Homeland Security Investigations-Rio Grande Valley Child Exploitation Task Force conducted the investigation with the assistance of York County Sheriff Office in South Carolina.
Assistant U.S. Attorney Laura Garcia 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.
McAllen Instagrammer convicted of soliciting sexual images from young childrenRead the Press Release
McALLEN, Texas – A 23-year-old man has pleaded guilty to attempting to coerce and entice a minor, announced U.S. Attorney Alamdar S. Hamdani.
From January to February 2020, Israel Ruiz used Instagram to solicit explicit images from children as young as nine.
The investigation revealed he used several tactics to obtain the pornographic materials including contacting the minor victims via the social media platform. He also intimidated the minors by threatening to post other nude images of them or their friends online if additional images were not given to him.
U.S. District Judge Ricardo H. Hinojosa will impose sentencing July 19. At that time, Ruiz faces up to life in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
The FBI conducted the investigation.
Assistant U.S. Attorneys Cahal P. McColgan and 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 link on that page.
Mathis dealer sent to prison after attempting to dispose of two duffel bags full of narcotics and cashRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old man has been sentenced for possession with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Roberto Rivas aka Scarface pleaded guilty Jan. 3, 2023.
U.S. District Judge Drew B. Tipton has now ordered Rivas to serve 180 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding his lengthy criminal history which began when he was just 12 years old including the facts surrounding his arrest and his role in narcotics trafficking in Mathis. The court also heard how Rivas was a poly-substance, multi-kilogram narcotics distributor who had been operating for years in the Mathis area.
The investigation began when Rivas sold meth to an informant for law enforcement. When authorities executed the arrest warrant for that sale, Rivas attempted to flee by running out of the back of his girlfriend’s house and hiding in the brush.
Rivas then attempted to dispose of two duffel bags containing almost four kilograms of cocaine, over 2.5 kilograms of meth, 133 grams of heroin, 600 grams of marijuana and more than $90,000 in cash by throwing the additional evidence into the brush. The estimated street value of the cocaine and meth was approximately $114,000.
However, law enforcement located Rivas and the duffel bags, and he was subsequently charged and pleaded guilty to the larger quantity of narcotics he attempted to throw away.
Additionally, while executing a search of the residence, authorities located a hidden closet concealed as a bookshelf. Rivas admitted he had it built in the house to help him hide from authorities when they came to arrest him.
Rivas’ girlfriend was also charged and convicted of harboring a fugitive for her role in helping him evade arrest in her home.
Rivas 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 the Homeland Security Investigations conducted the investigation with the assistance the U.S. Marshals Service, Sheriff’s Offices in Live Oak and San Patricio Counties, George West Police Department, Texas Department of Public Safety and Texas Parks and Wildlife Department. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Human smuggling family admits to over $2M money laundering conspiracyRead the Press Release
McALLEN, Texas – Four Mission residents have entered guilty pleas for their roles in a conspiracy to launder monetary instruments and a related conspiracy to transport aliens within the United States, announced U.S. Attorney Alamdar S. Hamdani.
Luis Enrique Moctezuma-Acosta, 36, Elizabeth Acosta, 52, and Keysi Fuentes-Gavarrete, 27, admitted to laundering over $2 million in monetary instruments. Scarlett Fuentes-Gavarrette, 35, entered her plea March 26 to the same charge. She and her husband - Moctezuma-Acosta - also pleaded guilty to conspiracy to transport illegal aliens. All four are either related through blood or marriage.
“In the heart of South Texas, where the borders converge, we confront the stark reality of money laundering and the smuggling of undocumented individuals,” said Hamdani. “From the distant lands of Honduras to the bustling streets of Boston, Massachusetts, this illicit network spans continents, but our resolve to dismantle it remains unwavering. By safeguarding against these criminal enterprises, we not only uphold the rule of law but also ensure the safety and dignity of all members of our community.”
The conspiracy involved a sophisticated network of alien smugglers across the United States utilizing commercial airplanes, tractor-trailers and various other smuggling methods.
An investigation began in November 2019 and revealed the smuggling organization brought approximately 300 undocumented migrants from the Southwest border regions further into the northern parts of the United States. The network spanned from Honduras to as far north as Boston, Massachusetts, with a heavy emphasis on smuggling Brazilian nationals.
On March 9, 2023, Authorities executed multiple search warrants at the properties of Scarlett Fuentes-Gavarrette and Moctezuma-Acosta, at which time they seized over $1.5 million in cash. The locations included their residence and a purported car dealership they operated as a front business. Throughout the investigation, law enforcement also seized approximately $2.69 million in assets and several luxury vehicles, such as a 2023 Escalade, 2021 Ford Shelby Truck, jewelry and several pieces of real property.
U.S. District Chief Judge Randy Crane will impose sentencing June 6. At that time, they all face up to up to 20 years in federal prison. Scarlett Fuentes-Gavarrette and Moctezuma-Acosta also face an additional 20 years. Both convictions also carry fines up to $250,000.
All will remain in custody pending sentencing.
The FBI conducted the investigation with the assistance of Border Patrol, Homeland Security Investigations, Texas Department of Insurance and McAllen Police Department. Assistant U.S. Attorney Eric D. Flores prosecuted the case. Assisting with forfeiture proceedings is Assistant U.S. Attorney Tyler Foster.
Former fugitive sentenced for transporting over 65 into United StatesRead the Press Release
CORPUS CHRISTI, Texas – A 30-year-old Mission resident has been sentenced for his role in a conspiracy to transport non U.S. citizens via commercial tractor-trailers, announced U.S. Attorney Alamdar S. Hamdani.
Daniel Cantu Jr. pleaded guilty Aug. 23, 2022. He was originally set to be sentenced in late 2023, but failed to appear. He remained a fugitive until February.
U.S. District Judge Drew B. Tipton has now ordered Cantu to serve a total of 110 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard evidence about how Cantu was directly involved in the transportation of more than 65 people via commercial tractor-trailers in 2021. Additionally, the court heard that Cantu has continued his involvement in criminal activity in the Rio Grande Valley, including additional alien transporting attempts while on bond in this case. In handing down the sentence the court noted the seriousness of the offense due to the large number of undocumented individuals the organization attempted to smuggle into the United States as well as the dangerous way in which they were doing so.
“The transportation of undocumented migrants across the U.S. southern border is a rapidly growing threat,” said Hamdani. “It is made worse by traffickers such as Daniel Cantu Jr., whose organization uses the cover of legitimate traffic to mask this criminal conduct and attempts to profit by transporting migrants.”
The organization as a whole is responsible for transporting over 200 aliens from South Texas and further into the United States as part of the conspiracy.
From August 2021 through December 2021, law enforcement intercepted five related smuggling attempts at the Falfurrias Border Patrol checkpoint and identified four men responsible for coordinating these smuggling events. Those men – Cantu, Jose Guadalupe Garcia Jr., Jesus Francisco Mares and Jose Antonio Cardona - were responsible for finding trucks, trailers and drivers as well as loading the vehicles with undocumented aliens.
Over the course of the conspiracy from July 2021 through April 2022, authorities estimate this trafficking organization transported or attempted to transport over 200 people further into the United States, most concealed in commercial trailers.
Garcia, 23, Alton, and Mares, 23, Mission, previously received 36 and 15 months, respectively, while Cardona, 30, Mission, is currently a fugitive. A warrant remains outstanding for his arrest.
Cantu 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 U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Ashley Martin prosecuted the case.
Dental clinic manager admits to employment tax violationsRead the Press Release
HOUSTON – The son of a local dentist has pleaded guilty for failing to pay taxes withheld from employee wages, announced U.S. Attorney Alamdar S. Hamdani.
Jonathan Louis Lepow was the manager of his father’s dental practice, Kenneth A. Lepow DDS Inc., located in Houston. The clinic had approximately 51 employees during the relevant time period from 2015 to 2017. Lepow was involved in the financial decision making at the clinic. In particular, he was responsible for accounting for and paying employment taxes to the IRS.
As part of his plea, Lepow admitted during the first quarter of 2015, he failed to pay $544,272 in IRS trust fund taxes collected from the clinics’ employees. Instead of paying these amounts to the IRS, Lepow used the money to pay vendors and transferred funds to accounts of other entities he was involved in establishing.
Lepow has agreed to pay $495,847 as part of his plea.
U.S. District Judge Charles R. Eskridge has set sentencing for Aug. 22. At that time, Lepow faces up to five years in federal prison and a possible $250,000 maximum fine.
IRS Criminal Investigation conducted the investigation. Former Assistant U.S. Attorney (AUSA) Quincy Ollison prosecuted the case, and Assistant AUSA Adam Goldman handled the plea hearing.
UPS employee heads to prison for concealing cocaine in packagesRead the Press Release
McALLEN, Texas – A 50-year-old Edinburg man has been sentenced following his conviction for possession with intent to distribute more than five kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Orlando Candelario Almanza pleaded guilty Oct. 23, 2023.
U.S. District Judge Micaela Alvarez has now ordered Almanza to serve a total of 75 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence about Almanza’s high ranking position at UPS. He was not only a driver but was also responsible for delivering packages directly to UPS carrier airplanes for outbound delivery. In handing down the sentence, the court noted Almanza played a key role in the drug trafficking organization.
“Almanza chose to break not only the trust of his company but that of the community,” said Hamdani. “These men chose to help drug traffickers, in the end causing them to trade their brown uniforms for orange jumpsuits.”
Almanza was a UPS employee of over 20 years and used his knowledge to help circumvent security protocols and ship the cocaine filled packages on behalf of drug traffickers.
Law enforcement seized several packages of cocaine from across the country which were traced back to the McAllen UPS facility and to Almanza and another employee - Fidencio Salinas Jr.
In October 2022, after several months of investigation, authorities observed Almanza receive a package from drug traffickers while on shift. The package was destined for Tennessee and contained 10 kilograms of cocaine.
Drug traffickers paid Almanza approximately $300-$500 dollars per cocaine-filled package shipped.
Salinas Jr., 51, Pharr, a UPS employee for over seven years, previously received 27 months in federal prison.
Almanza was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration along with FBI conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case.
Two sent to prison after drug trafficking in local parking lotRead the Press Release
McALLEN, Texas – Two Mission men have been ordered to federal prison following their convictions in a cocaine trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Eddie Perez, 29, and Juan Alberto Mendez Jr., 29, pleaded guilty April 24, 2023, to conspiracy to possess with intent to distribute 20 kilograms of cocaine.
U.S. District Chief Judge Randy Crane has now imposed a 120-month-term of imprisonment for Perez, while Mendez received 96 months. Both must also serve five and three years of supervised release, respectively, following their sentences. At the hearing, the court heard additional evidence about the criminal history of Perez including his three prior felony convictions.
In October 2022, Perez was to deliver narcotics to another individual on behalf of his friend Mendez.
Authorities conducted surveillance at a Best Buy parking lot in McAllen in anticipation of the narcotics deal. They saw vehicles approach, after which Perez removed bags containing bricks of cocaine from the trunk of his vehicle.
Mendez was parked in another vehicle with his wife and six children observing the transaction.
Law enforcement approached arrested Perez and Mendez and immediately seized a total of 20 kilograms of cocaine.
A subsequent search of Mendez home yielded another kilogram of cocaine.
Mendez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Perez has been and will remain in custody.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case.
Three sentenced in deadly home robberyRead the Press Release
McALLEN, Texas - Three South Texas men have been sentenced following their conviction for a home invasion that led to the death of a homeowner, announced U.S. Attorney Alamdar S. Hamdani.
Juan Antonio Moreno, 41, and Jesse Joe Mata, 32, both of Donna; and Alberto Vela, 43, Mercedes, pleaded guilty Aug. 4, 2012, to conspiracy to possess with intent to distribute more than 100 kilograms of marijuana and discharging a firearm during and in relation to a drug trafficking crime.
U.S. District Chief Judge Randy Crane has now ordered Moreno to serve a 115-month-term of imprisonment for the drug charge in addition to another 120 months for the firearms offense which must be served consecutively for a total 235-month federal prison sentence. Mata received a total of 212 months, while Vela was ordered to serve 12 years. His prison sentence will be immediately followed by three years of supervised release while the other two serve four years.
“For most of us, our homes are our sanctuaries,” said Hamdani. “We could never imagine, not for one moment, armed gang members breaking down doors and shooting us to death in such a sacred place. This case illustrates how the dirty, greedy and violent business of drug trafficking takes no prisoners and has no redeeming value. Our office will not rest until we can put drug traffickers out of business and eradicate this type of violence from our communities.”
“Our citizens deserve to feel safe in their homes, and the violent acts committed by the defendants in this case deprive everyone in the community of that right,” said Special Agent in Charge Aaron Tapp of the FBI's San Antonio Field Office. “We would like to thank our partners with the Texas Alcoholic Beverage Commission (TABC), McAllen Police Department (MPD), Hidalgo County Sheriff’s Office (HCSO) and the Organized Crime Drug Enforcement Task Forces (OCDETF) for their collective efforts to ensure every person has the opportunity to live and work in a safe community.”
Moreno had contacted members of the Tri-City Bombers, a violent criminal enterprise, to assist him and the others a home invasion to steal marijuana he believed was stored in the home.
On April 12, 2012, Moreno, Mata, Vela and others broke into the Edinburg residence. The homeowner was present and confronted them with a firearm. A struggle ensued and the homeowner was shot and killed. Vela was also shot.
FBI led the OCDETF investigation with the assistance of TABC, MPD and Hidalgo County Sheriff’s Office.
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. Attorneys Anibal J. Alaniz and Casey N. MacDonald prosecuted the case.
Mexican resident convicted of trying to smuggle ammunition and firearms back to MexicoRead the Press Release
McALLEN, Texas – A 67-year-old resident of Guadalajara, Mexico, has pleaded guilty to attempting to smuggle multiple firearms and hundreds of rounds of ammunition in vehicle roof rack, announced U.S. Attorney Alamdar S. Hamdani.
On Jan. 11, Jose De Jesus Pena Dieguez attempted to enter Mexico through the Progreso Port of Entry in a Nissan Xterra. Upon inspection, authorities noticed tampering on the screws of a compartment connected to the vehicle's roof rack. An x-ray examination also showed anomalies within the compartment.
A subsequent search revealed 16 firearms, 31 firearm magazines, assorted firearm parts and 800 rounds of ammunition.
"Dieguez potentially put lives at risk for his own personal gain - intending to profit by selling firearms illegally smuggled out of the United States,” said Hamdani. “These crimes not only affect our residents, they also endanger innocent Mexican citizens. It’s an international issue, and we remain relentless in our efforts to bring safety and security in taking these traffickers off the streets. Put simply, try to take guns to Mexico and you will pay for it with your freedom.”
Dieguez admitted he purchased the firearms and intended to illegally export them to Mexico.
U.S. District Chief Judge Randy Crane will impose sentencing June 11. At that time, Dieguez faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Customs and Border Protection conducted the joint investigation.
Assistant U.S. Attorney Cahal P. McColgan is prosecuting 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.
Five ordered to prison for drug trafficking following searchRead the Press Release
McALLEN, Texas – Several men have been sentenced for their roles in a cocaine trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Martin Vela-Alanis, 60, and Arlando Garcia-Garcia, 41, Martin Adrusbel Vela, 36, and Oscar Obed Manzanares, 23, all of Edinburg; and Mexican citizen Jose Santiago Luna-Duran, 46, each pleaded guilty Oct. 5, 2o23, for their respective roles in a conspiracy to possess with the intent to distribute kilograms of cocaine.
U.S. District Chief Judge Randy Crane has now imposed a 151-month-term of imprisonment for Vela-Alanis and 46 months for Garcia-Garcia. Vela, Manzanares and Luna-Duran received 87, 60, and 46 months, respectively. Not U.S. citizens, Vela-Alanis, Garcia-Garcia and Luna-Duran are expected to face removal proceedings following their release from prison.
At the hearing, the court heard how this was an extensive and multi-level drug trafficking organization that imported and distributed narcotics on multiple occasions. The evidence indicated that the organization was receiving shipments of narcotics every 15 to 20 days. In handing down the prison terms, Chief Crane noted how this was a pervasive organization that included not just the importation and transportation of large quantities of cocaine, but also the transport and distribution of the drug proceeds.
On March 22, 2022, Manzanares traveled into the United States from Mexico in a GMC truck and parked it at a local business in McAllen. Luna-Duran then took the vehicle to a property in Edinburg.
There, authorities observed individuals exchange items between the GMC and a Ford pickup truck. Garcia-Garcia, a resident of the Edinburg property, then drove the Ford to a separate residence on the property where Vela and Vela-Alanis resided. Upon his arrival, Garcia-Garcia removed a large duffel bag from the truck.
Law enforcement executed a search warrant at the property and recovered a duffel bag containing 15 bundles of a white powdery substance. They also found over $90,000 and a black and gold Colt Model 1911 pistol.
Luna-Duran returned to the business where he had met Manzanares. There, authorities detained both men. A search of the GMC vehicle resulted in the discovery of over $238,000 in bulk cash.
Laboratory analysis later confirmed the bundles tested positive for cocaine and had a weight of approximately 15 kilograms.
They will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Jose Bernando Gonzalez-Gomez, 56, Mexico, was the mechanic who transferred the cocaine from one vehicle to another. He also pleaded guilty and is set for sentencing May 2.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection Air and Marine Operations, Hidalgo County Sheriff’s Office and police departments in Hidalgo, Mission, McAllen, Alton, Pharr and Palmview. Assistant U.S. Attorneys Lee Fry and Peter I. Brostowin prosecuted the case.
Filing fraudulent tax return results in prison for tax preparerRead the Press Release
HOUSTON – A local tax preparer has been sentenced to federal prison for willfully preparing a fraudulent 2018 joint income tax return, announced U.S. Attorney Alamdar S. Hamdani.
Lynettia Profit pleaded guilty Oct. 6, 2023.
U.S. District Judge Lee H Rosenthal has now ordered Profit to serve 12 months and one day in federal prison to be immediately followed by one year of supervised release. At the hearing, the court heard how Profit and her business executed a long-running scheme to claim false credits on her clients’ behalf, and sought to evade IRS scrutiny. The court also ordered Profit to pay $336,847 in restitution.
Profit operated JNL Tax Services in Houston.
Profit admitted that between 2016 and 2019, she filed fraudulent tax returns for taxpayers. In those fraudulent returns, Profit knowingly reported false education credits and expenses on Schedule C forms to generate larger income tax refunds for her clients.
In 2019, she prepared an income tax return that contained two false $2,500 education credits as well as $70,743 in false expenses that were listed on Schedule C. As a result, the government suffered a tax loss of approximately $22,101. Profit also prepared a false return containing education credits and Schedule C expenses for an undercover agent in February 2020.
The fraudulent tax returns resulted in a loss of at least $336,847 to the United States.
Profit was permitted to remain on bond and will voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Brad Gray and Andrew Swartz prosecuted the case.
Convicted sex offender heads to prison for uploading child pornography to Google accountsRead the Press Release
McALLEN, Texas – A 38-year-old McAllen resident has been sentenced for transporting child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Oscar Ramirez Jr. pleaded guilty Oct. 23, 2023.
U.S. District Judge Micaela Alvarez has now ordered Ramirez to serve 180 months in federal prison. At the hearing, the court heard additional information including that Ramirez had approximately 2,070 files of child pornography, of which 64 were videos. Some videos were over 20 minutes long. In handing down the prison terms, the court reviewed victim letters and noted child pornography is not a victimless crime as these victims continue to suffer lifelong consequences as a result of the abuse they suffered now memorialized on the internet. Ramirez was further ordered to pay $20,000 in restitution to known victims and will serve the rest of his life 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.
The court also heard that Ramirez was previously convicted of aggravated sexual assault in 2010. He will again be ordered to register as a sex offender following this sentence.
In July 2022, law enforcement received information involving an individual uploading multiple files of child pornography to a Google account on or about May 4, 2022. Authorities determined the IP address associated with this activity belonged to Ramirez.
A review of the Google accounts associated with Ramirez revealed images and videos of child pornography. Ramirez also had images and videos of a nude minor victim Ramirez had recorded from outside a window as well as from a vent in the ceiling of a bathroom.
In September 2022, law enforcement executed a federal search warrant at his residence in McAllen. At that time, Ramirez identified himself in videos on the Google accounts.
Ramirez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations Rio Grande Valley Child Exploitation Investigations Task Force 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.
Chinese national sent to prison for possessing child pornography videos of minor younger than fiveRead the Press Release
McALLEN, Texas – A 46-year-old Chinese national has been sentenced for transporting child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Tong Sun pleaded guilty Dec. 20, 2023.
U.S. District Judge Drew B. Tipton has now sentenced him to 144 months in federal prison. Sun was further ordered to pay $35,000 in special assessments and will serve five 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 and will also be ordered to register as a sex offender. Not a U.S. citizen, Sun is expected to face removal proceedings following his imprisonment.
On or about May 8, 2023, Sun attempted to illegally enter the country in an area near Roma. Law enforcement took him into custody, at which time they discovered several videos that constituted child pornography on his phone.
One of the videos depicted a child who appeared to be younger than five years of age.
Sun admitted to ownership of the phone and to possessing the child pornography.
He 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 Border Patrol conducted the investigation.
Assistant U.S. Attorney Cahal P. McColgan 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 link on that page.
Young trafficker imprisoned for transporting thousands of fentanyl pillsRead the Press Release
McALLEN, Texas – A 21-year-old Pharr resident has been sentenced following his conviction of conspiracy to possess with intent to distribute fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
Alex Dominque Carrillo pleaded guilty Dec. 20, 2023.
U.S. District Judge Drew B. Tipton has now ordered Carrillo to serve 96 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard that in addition to the fentanyl, law enforcement determined Carrillo was also linked to the seizure of multiple kilograms of meth.
“Just one pill can kill,” said Hamdani. “Mexican drug traffickers have no regard for the countless lives lost at the hands of fentanyl. Today’s sentence puts another fentanyl trafficker behind bars and thousands of lethal fentanyl pills off the streets.”
In May 2023, authorities began an investigation which determined Carrillo was a drug courier working on behalf of a Mexican drug trafficker. Carrillo was tasked to pick up the drugs once they were successfully imported by the Mexican smugglers and deliver the drugs to various buyers in the United States.
The following month, law enforcement seized 500 fentanyl pills in Pharr that Carrillo had transported.
In August 2023, law enforcement observed as Carrillo was attempting to transport drugs to a McAllen buyer. Noticing the law enforcement presence, Carrillo attempted to conceal the 3,500 fentanyl pills in a public parking lot trash can. Authorities successfully retrieved the pills and placed Carrillo under arrest.
Carrillo 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. Assistant U.S. Attorney Laura Garcia prosecuted the case.
Repeat drug trafficker gets significant sentenceRead the Press Release
McALLEN, Texas –A 63-year-old Pharr resident has been sentenced following his conviction of possession with intent to distribute 11 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Gilberto Eloy Ramirez pleaded guilty Oct. 1, 2020.
U.S. District Chief Judge Randy Crane has now ordered Ramirez to serve a 262-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence detailing his extensive criminal history including seven prior convictions for drug trafficking. In handing down the sentence, Judge Crane noted Ramirez is a career offender who has spent a substantial amount of years in prison for his past crimes and yet continued to make poor choices.
In May 2019, authorities conducted a traffic stop on a Ramirez drove. He was found in possession of two plastic bags of cocaine in his pocket.
Law enforcement then searched his residence and property. They discovered multiple bricks of cocaine with a combined weight of 11 kilograms, a scale, plastic wrap, razor blades, heat seal bags and a loaded 9 mm caliber pistol.
Ramirez has been and 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. Assistant U.S. Attorneys M. Alexis Garcia and Laura Garcia prosecuted the case.
Hiding meth in shoes lands smuggler in prisonRead the Press Release
McALLEN, Texas – A 30-year-old Edinburg resident has been sentenced following his conviction of importing meth, announced U.S. Attorney Alamdar S. Hamdani.
Oscar Salazar pleaded guilty Aug. 4, 2022.
U.S. District Chief Judge Randy Crane has now ordered Salazar 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 of Salazar’s prior criminal history including a felony conviction for trafficking marijuana through a Border Patrol checkpoint.
On Dec. 11, 2020, Salazar drove to the Hidalgo Port of Entry attempting to enter the United States from Mexico. Law enforcement conducted a search of his vehicle and found multiple packages of meth hidden within the center console, glove compartment and a pair of shoes within his vehicle.
The meth weighed approximately three pounds with an estimated street value of $5,000.
Salazar 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 Laura Garcia prosecuted the case.
Former Guinea-Bissau president’s son sent to U.S. prison for international drug traffickingRead the Press Release
HOUSTON – The leader of a transnational drug trafficking organization has been imprisoned for his involvement in an international heroin trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Malam Bacai Sanha Jr., 52, pleaded guilty Sept. 6, 2023, to conspiracy to distribute a controlled substance for the purpose of unlawful importation.
U.S. District Judge Keith Ellison has now ordered Sanha to serve an 80-month-term of imprisonment. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard Sanha was the son of the former president of Guinea-Bissau and was intending to use drug proceeds to finance his future campaign for president in 2025 and a coup in that country. In handing down the sentence, the court noted Sanha was a leader and organizer in the heroin trafficking conspiracy and was directly involved in its importation from Europe to the United States. The court also found his drug trafficking activities to be extensive.
“The expansive reach of transnational criminal networks, like the one Sanha ran, presents a serious threat to the safety and health of all communities,” said Hamdani. “Sanha and his associates intended to distribute kilograms of heroin to the United States at a time when Americans lose their lives to drug overdose every day. This prosecution represents our office’s unwavering determination, together with our U.S. and international partners, to target and bring to justice violent criminals who lead transnational drug trafficking organizations that continue to flood our country with dangerous drugs.”
“The success of this investigation is the result of careful coordination between our federal, state, local and international partners,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA) Houston Division. “Our goal is to keep the citizens of the United States safe from the terrors of drug traffickers, whether they reside on our soil or foreign land.”
“Malam Bacai Sanha Jr. wasn’t any ordinary international drug trafficker,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “He is the son of the former president of Guinea-Bissau and was trafficking drugs for a very specific reason - to fund a coup that would eventually lead him to the presidency of his native country where he planned to establish a drug regime. Fortunately, FBI Houston agents and our partners at the DEA thwarted his attempts, with the cooperation of our international partners. Crime has a global reach and impact, and so does the FBI.”
Sanha was the leader of a transnational criminal organization and worked with co-conspirators and international individuals to import heroin from various countries into Portugal.
With the assistance of co-conspirators, Sanha provided 4.7 kilograms of heroin to an undercover member of law enforcement in Lisbon, Portugal, in February and March 2022. He further agreed to deliver the heroin on at least three occasions, believing it would be unlawfully imported into the United States.
On July 23, 2022, Tanzanian law enforcement arrested Sanha pursuant to domestic criminal charges, along with a co-conspirator, upon their arrival in Dar Es Salaam, Tanzania. The United States presented a formal request for Sanha’s extradition to the government of Tanzania, which the Tanzanian courts granted Aug. 5, 2022. The Tanzanian Minister of Constitutional and Legal Affairs signed the formal surrender order Aug. 16, 2022. Sanha and his co-conspirator arrived in the Southern District of Texas Aug. 26, 2022.
Sanha will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
DEA Houston, FBI Houston and the U.S. Marshals Service conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative with the assistance of DEA Special Operations Division in Washington D.C., DEA Romania, DEA Portugal and DEA Tanzania as well as Portuguese Judicial Police. Thanks are also extended to the government of the United Republic of Tanzania. These OCDETF 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. The specific mission of the Houston Strike Force is to disrupt and dismantle the drug trafficking organizations that are designated as Consolidated Priority Organization or Regional Priority Organization Targets and that impact Houston and south Texas. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
The Justice Department’s Office of International Affairs worked with Tanzanian authorities to secure the arrest and extradition of Sanha. The Justice Department thanks the government of the United Republic of Tanzania, including the Drug Control and Enforcement Authority, Tanzanian Police Force Airport Interdiction Unit, Director of Public Prosecution and the Ministry of Constitutional and Legal Affairs, and the Portuguese Judicial Police.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal J. Alaniz prosecuted the case.
Local man convicted of attacking officer in downtown HoustonRead the Press Release
HOUSTON – A 37-year-old Houston resident has pleaded guilty to assault of a federal officer after damaging two downtown buildings, announced U.S. Attorney Alamdar S. Hamdani.
On Oct. 26, 2023, Justin Wade 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.
“Brandishing a long metal pole, Prophet displayed a blatant disregard for public safety,” said Hamdani. “It is my office’s mission to protect federal facilities and Houston’s citizens, and with the help of local and federal partners, Prophet is now off the streets destined for a room full of metal poles—a prison cell.”
U.S. District Judge David Hittner has set sentencing for June 20. At that time, Prophet faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Prophet has been and will remain in custody pending sentencing.
The Department of Homeland Security - Federal Protective Service and Houston Police Department conducted the investigation. Assistant U.S. Attorney John M. Lewis is prosecuting the case.
Physician pays $1.8M to settle False Claims Act liabilityRead the Press Release
HOUSTON – A Houston-area doctor and his diagnostic facilities have agreed to pay to resolve False Claims Act (FCA) allegations regarding the submission of claims to Medicare and Medicaid that were medically unnecessary and in violation of the Physician Self-Referral Law (aka Stark Law), announced U.S. Attorney Alamdar S. Hamdani.
From July 22, 2014, through July 10, 2017, Dr. Mohammad Athari, 80, Houston, and United Neurology P.A. allegedly engaged in a pattern and practice of falsely billing Medicare Part B. The claims were for services that were not reasonable or medically necessary because the patients’ diagnoses or medical records did not support them or unlicensed and untrained technicians had incorrectly or inadequately rendered them.
This settlement also resolves allegations that from Jan. 7, 2014, through Jan. 8, 2021, Athari submitted or caused the submission of false claims to Medicare by billing for diagnostic imaging procedures in violation of the Stark Law. Athari allegedly referred his neurology patients to diagnostic centers he owns (Universal MRI Baytown, Universal MRI Humble and Universal MRI Conroe) in violation of the Stark Law.
The Stark Law seeks to safeguard the integrity of the Medicare program by prohibiting physicians from referring patients to receive “designated health services” Medicare pays from entities with which the physician has a financial relationship.
“The Stark Law was enacted to ensure that a physician’s clinical judgment is not corrupted by improper financial incentives,” said Hamdani. “Similarly, physicians that bill government healthcare programs must ensure they are billing for medically necessary services and not just maximizing their own income. Our office will continue to pursue cases that will protect the integrity of government healthcare programs and safeguard taxpayer dollars while ensuring that patients receive consistent and quality care.”
“Personal financial incentives corrupt the medical decision-making process, leading to harm for patients and depletion of funds from federally funded health care programs. Physicians who fraudulently submit medically unnecessary claims prioritize profit over their duty to patients,” said Special Agent in Charge Jason E. Meadows with the Department of Health and Human Services - Office of Inspector General (DHHS-OIG). “DHHS-OIG remains steadfast in holding accountable those who prioritize personal gain over delivering legitimate medical services.”
The settlement stems from a qui tam or whistleblower complaint filed under the FCA which permits a private party to file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is United States ex rel. Lisa Parker v. Mohammad Athari M.D., et al. (4:20-cv-02056). The whistleblowers will receive 18% of the proceeds from the settlement with Athari.
The U.S. Attorney’s Office for the Southern District of Texas and the Texas Attorney General’s Office – Civil Medicaid Fraud Division conducted the investigation with assistance from DHHS - OIG. Assistant U.S. Attorney Melissa Green handled the matter.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
$1.5M shopping spree: local man imprisoned for illegal use of stolen credit card informationRead the Press Release
HOUSTON – A 34-year-old Missouri City man has been ordered to federal prison for conspiracy to commit wire fraud and identity theft, announced U.S. Attorney Alamdar S. Hamdani.
Emmanuel Babajide Awolaja pleaded guilty Nov. 3, 2023.
U.S. District Judge Ewing Werlein Jr. has now ordered Awolaja to serve 138 months for the conspiracy as well as another 24 months for the aggravated identity theft which must be served consecutively. The total 162-month prison term will be immediately followed by three years of supervised release. He was also ordered to pay $263,955.73 in restitution to the victims which included local merchants.
At the hearing, the court heard additional evidence that determined Awolaja was responsible for more than $1.5 million in losses. In handing down the sentence, the court noted Awolaja’s criminal history dated back almost 20 years with this being his 13th felony offense. Judge Werlein noted how the previous sentences have not deterred him from criminal activity, and the court was imposing this sentence to protect the public from his continued criminal recidivism.
Awolaja and Tia Nicole Chavis came into possession of credit card information for numerous Chase Bank customers along with personal identifying information of various individuals.
From February 2021 until October 2023, Chavis agreed to help Awolaja use the unlawfully obtained credit card information to purchase expensive jewelry, hotel rooms, rental cars, meals and various other goods or services.
When they would first attempt to use the cards, the charges would be denied. However, Awolaja and Chavis persuaded merchants to manually enter the card numbers which typically resulted in approval, ultimately causing substantial loss for the merchants.
The investigation revealed Awolaja used the stolen account information to make purchases in Iowa, Virginia and several other states.
The scheme unraveled May 19, 2021, when they attempted to fraudulently purchase a $14,000 watch at Tomball Pawn and Jewelry. Law enforcement then worked with merchants throughout the country to identify Chavis and Awolaja from store video in other transactions.
Chavis, 32, Houston, also pleaded guilty and it set for sentencing April 12.
Both have been and will remain in custody.
The Secret Service conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.
Mexican national charged with attempting to bring over $100,000 of cocaine into countryRead the Press Release
LAREDO, Texas – A 40-year-old resident of Mexico has been indicted for attempting to import almost 10 kilograms of cocaine into the United States, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury returned a four-count indictment today against Ricardo Cantu-Vasquez. He is expected to appear for his arraignment before a U.S. magistrate judge in the near future.
The criminal complaint originally filed in the case alleges that on Feb. 27, law enforcement stopped Cantu-Vasquez for a traffic violation. Authorities conducted a search of the vehicle and allegedly found 9.5 kilograms of cocaine hidden inside a concealed compartment under the rear seat of the vehicle.
The drugs have an estimated street value of nearly $115,000.
If convicted, he faces up to life in prison and a possible $10 million maximum fine.
The Drug Enforcement Administration and Laredo Police Department conducted the investigation with assistance from Homeland Security Investigations and Border Patrol. Assistant U.S. Attorneys Brittany Jensen and Brian Bajew are prosecuting the case.
This case is being prosecuted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country. 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.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Illegal sale of monkey over Craigslist sends Houston woman to prisonRead the Press Release
HOUSTON – A 21-year-old woman has been sentenced for selling wildlife, including a spider monkey, in violation of the Lacey Act, announced U.S. Attorney Alamdar S. Hamdani.
Savannah Nicole Valdez pleaded guilty Feb. 8, 2023.
U.S. District Judge Andrew S. Hanen has now ordered Valdez to serve 15 months in federal prison to be immediately followed by three years of supervised release. The court considered that Valdez was previously sentenced to two years of supervised release for smuggling a monkey into the United States and high-speed flight from an immigration checkpoint. The court revoked her supervised release in that case, and she received another month to run consecutively with this prison term.
“When Savannah Valdez sold a Mexican spider monkey, she contributed to endangering a species,” said Hamdani. “As the court heard today, those who traffic in infant spider monkeys shoot the mothers first and then pull the infants from their mother’s dead bodies before throwing them into cages for transport. Valdez’s actions helped sustain an illicit market that encouraged the needless death and suffering of endangered animals. Thankfully, now she will have to spend time in a cage of her making - a prison cell.”
In summer 2023, authorities discovered several advertisements posted to Craigslist offering exotic birds for sale including keel-billed toucans and yellow-headed amazon parrots. These are federally protected under the Endangered Species Act.
Law enforcement identified the personal cell phone number of Valdez during the initial investigation. They found the contact number listed for the animals was, in fact, the same.
The subsequent undercover operation involved the sale of two keel-billed toucans and a Mexican spider monkey.
On July 28, 2023, her mother arrived at Memorial City Mall in Houston to deliver the toucans and accepted $3,000 as payment. Her mother would later admit her daughter had arranged the sale.
On Aug. 1, 2023, Valdez then coordinated the sale of a Mexican spider monkey for $8,500. She had her sister deliver it on her behalf.
The animals have been transferred to zoos within Texas.
Valdez as permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility in the near future.
The Fish and Wildlife Service conducted the investigation with the assistance of Homeland Security Investigations and the Department of Agriculture - Office of Inspector General. Assistant U.S. Attorney Steven Schammel prosecuted the case.
Former energy company president convicted in $5.5M illegal kickback conspiracy and commodities insider trading schemeRead the Press Release
HOUSTON - The former president of a Texas energy company has pleaded guilty to an illegal kickback scheme and a commodities insider trading scheme involving natural gas futures contracts.
Matthew Clark, 56, Needville, entered his plea March 15, admitting he conspired with others to direct his employer’s trades to Classic Energy LLC in exchange for illegal kickbacks. Specifically, Clark accepted more than $5.5 million in illegal kickbacks, which were generated from commission fees his employer paid to Classic Energy. Classic Energy is a brokerage firm Matthew Webb, 54, Tiki Island, owned and operated.
“Matthew Clark made millions trading in natural gas commodities, but unlike most Houston traders, he made his money illegally through the use of kickback schemes involving associates, relatives and his employer’s proprietary insider information,” said U.S. Attorney Alamdar S. Hamdani. “The natural gas futures contract market is an integral part of Houston’s economy, and to preserve the integrity of that system, it is important that commodity traders who buy and sell those contracts not engage in illegal and unfair practices. That’s why my office is committed to holding those accountable, like Clark, who use kickbacks and inside information to enrich themselves at the expense of the public’s trust in the U.S. markets.”
“Matthew Clark steered his company’s commodities trading business to a broker in exchange for over $5.5 million in illegal kickbacks. He also misappropriated confidential information about his company’s planned commodities trades and used that information to enrich himself and his co-conspirators,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “When corporate insiders engage in insider trading and other deceptive trade practices for their own financial gain, they don’t just harm the company—they undermine the integrity of our financial markets. This groundbreaking investigation was the first to result in criminal convictions for commodities insider trading. It will not be the last.”
Clark also misappropriated his employer’s material nonpublic information and engaged in prohibited commodities transactions. Webb, through Classic Energy, brokered Clark’s natural gas futures trades with counterparties who were identified in advance of executing the trades. The predetermined counterparties included John Ed James, 54, Katy, and Peter Miller, 49, Puerto Rico. Clark, Webb, James and Miller then shared the net profits generated from these illegal prearranged trades.
“The FBI and its partners will continue to relentlessly pursue those who engage in illegal kickback schemes,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “This plea should make it known to others that participate in illicit activity that threatens the integrity of our financial systems that there are consequences to your actions.”
Clark pleaded guilty to one count of conspiracy to commit honest services wire fraud, one count of prohibited commodities transaction and one count of commodities insider trading. He is scheduled to be sentenced June 24 and faces a maximum penalty of 20 years in prison for the honest services wire fraud conspiracy count and 10 years in prison on each of the prohibited commodities transaction and insider trading counts.
Webb pleaded guilty in June 2021 to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act, while James admitted in February 2021 to conspiracy to commit commodities fraud and wire fraud. Miller entered his plea in February 2022 to conspiracy to commit commodities fraud. Miller is set for sentencing June 20, while Webb and James are scheduled for July 1.
In two other related cases, Marcus Schultz, 44, Houston, and Lee Tippett, 64, of Jacksonville, Florida, were convicted in July 2020 and August 2021, respectively. Schultz pleaded guilty to conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act. Tippett entered his plea to conspiracy to commit commodities fraud and honest services wire fraud and was sentenced to 33 months in prison.
The FBI conducted the investigation.
Assistant U.S. Attorney Grace Murphy is prosecuting the case along with Assistant Chief Leslie S. Garthwaite and Trial Attorneys Della Sentilles and David Hamstra of the Criminal Division’s Fraud Section.
Former President of Energy Company Pleads Guilty to $5.5M Illegal Kickback Conspiracy and Commodities Insider Trading SchemeRead the Press Release
The former president of a Texas energy company pleaded guilty last week to an illegal kickback scheme and a commodities insider trading scheme involving natural gas futures contracts.
According to court documents, Matthew Clark, 56, of Needville, Texas, conspired with others to direct his employer’s trades to Classic Energy LLC, a brokerage firm owned and operated by Matthew Webb, 54, of Tiki Island, Texas, in exchange for illegal kickbacks. Specifically, Clark accepted more than $5.5 million in illegal kickbacks, which were generated from commission fees paid by his employer to Classic Energy.
“Matthew Clark steered his company’s commodities trading business to a broker in exchange for over $5.5 million in illegal kickbacks. He also misappropriated confidential information about his company’s planned commodities trades and used that information to enrich himself and his co-conspirators,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “When corporate insiders engage in insider trading and other deceptive trade practices for their own financial gain, they don’t just harm the company — they undermine the integrity of our financial markets. This groundbreaking investigation was the first to result in criminal convictions for commodities insider trading. It will not be the last.”
“Matthew Clark made millions trading in natural gas commodities, but unlike most Houston traders, he made his money illegally through the use of kickback schemes involving associates, relatives, and his employer’s proprietary insider information,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “The natural gas futures contract market is an integral part of Houston’s economy, and to preserve the integrity of that system, it is important that commodity traders who buy and sell those contracts not engage in illegal and unfair practices. That’s why my office is committed to holding those accountable, like Clark, who use kickbacks and inside information to enrich themselves at the expense of the public’s trust in the U.S. markets.”
Clark also misappropriated his employer’s material nonpublic information and engaged in prohibited commodities transactions. Webb, through Classic Energy, brokered Clark’s natural gas futures trades with counterparties who were identified in advance of executing the trades. The predetermined counterparties included John Ed James, 54, of Katy, Texas, and Peter Miller, 49, of Puerto Rico. Clark, Webb, James, and Miller then shared the net profits generated from these illegal prearranged trades.
“The FBI and its partners will continue to relentlessly pursue those who engage in illegal kickback schemes,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “This plea should make it known to others that participate in illicit activity that threatens the integrity of our financial systems that there are consequences to your actions.”
“The FBI Houston Field Office is proud to have spearheaded this first-of-its-kind criminal commodities insider trading case,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “Securities and commodities fraud may be a non-violent crime but it’s certainly not victimless – it damages the public’s confidence in the U.S. markets and stacks the deck against fair traders and investors.”
Clark pleaded guilty to one count of conspiracy to commit honest services wire fraud, one count of prohibited commodities transaction, and one count of commodities insider trading. He is scheduled to be sentenced on June 24 and faces a maximum penalty of 20 years in prison for the honest services wire fraud conspiracy count and 10 years in prison on each of the prohibited commodities transaction and insider trading counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Webb pleaded guilty in June 2021 to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act; James pleaded guilty in February 2021 to conspiracy to commit commodities fraud and wire fraud; and Miller pleaded guilty in February 2022 to conspiracy to commit commodities fraud. Miller is scheduled to be sentenced on June 20. Webb and James are scheduled to be sentenced on July 1.
In two other related cases, Marcus Schultz, 44, of Houston, and Lee Tippett, 64, of Jacksonville, Florida, pleaded guilty in July 2020 and August 2021, respectively. Schultz pleaded guilty to conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act, and Tippett pleaded guilty to conspiracy to commit commodities fraud and honest services wire fraud. Tippett was sentenced on Feb. 20 to two years and nine months in prison followed by three years of supervised release. Schultz is scheduled to be sentenced on July 1.
The FBI Houston Field Office is investigating the case.
Assistant Chief Leslie S. Garthwaite and Trial Attorneys Della Sentilles and David Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Grace Murphy for the Southern District of Texas are prosecuting the case.
Former federal officer admits to smuggling aliens and receiving bribes to allow cocaine across the borderRead the Press Release
LAREDO, Texas – A former Customs and Border Protection (CBP) officer has been convicted in two separate federal cases and now faces decades in prison, announced U.S. Attorney Alamdar S. Hamdani.
Emanuel Isac Celedon, 36, Laredo, pleaded guilty to four counts of bringing an undocumented alien to the United States through the Lincoln Juarez Port of Entry (POE) in Laredo. In a separate case, he also admitted to bribery and attempted importation of cocaine for taking money to allow what he thought was cocaine to cross into the United States from Mexico.
As part of the smuggling conspiracy, Celedon provided his daily lane assignment to conspirators to allow entry without inspection or documentation of passengers. This occurred on at least nine occasions between September and November 2023. Authorities also discovered that during at least two of these smuggling events, Celedon falsely input information into a CBP database in order to avoid sending the driver to mandatory secondary inspection.
The investigation revealed he asked others to relay information about his role to Mexican smugglers in attempts to reassure them he was doing his part to facilitate the organization’s human smuggling efforts.
Law enforcement seized $1,980 in cash from Celedon at the time of his arrest, which he admitted were proceeds from human smuggling.
In a separate case, Celedon agreed to smuggle what he believed were kilograms of cocaine from Mexico through his duty lane at the Laredo POE on two occasions in October 2023.
Celedon sought contacts within the cartels who would pay him to smuggle cocaine through the POE. The undercover investigation revealed Celedon expressed his interest in smuggling cocaine for payment, provided his duty schedule and instructed others to direct vehicles to his lane so he could allow them to safely cross into the United States.
Celedon was paid a total of $6,000 after the vehicles with sham cocaine safely crossed the POE.
U.S. District Judges Diana Saldana and Marina Garcia Marmolejo will impose sentencing at later dates on the smuggling and bribery cases, respectively. At those times, Celedon faces up to 10 years on two counts and 15 years on the other two counts in the smuggling case as well as another 15 years for the bribery and 40 years for the drug charges. He also faces hundreds of thousands in possible fines.
Celedon will remain in custody pending those hearings.
The Department of Homeland Security (DHS) - Office of Inspector General, Drug Enforcement Administration (DEA), Homeland Security Investigations and CBP- Office of Professional Responsibility conducted the investigation with assistance from the Texas Department of Public Safety, Border Patrol, Webb County Constable Precinct 2 and CBP Laredo Joint Forensic Center. Assistant U.S. Attorneys (AUSA) Jennifer Day and Richard Bennett are prosecuting both cases. AUSA Brian Bajew handled the plea today.
This investigation is related to an Organized Crime Drug Enforcement Task Forces (OCDETF) case. 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.
This case is also supported by Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland created JTFA in June 2021 in partnership with the DHS to strengthen the Justice Department’s overall efforts to combat the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA is comprised of detailees from southwest border U.S. Attorneys’ Offices, including the Southern and Western Districts of Texas, District of New Mexico, District of Arizona and Southern District of California. Numerous components of the Criminal Division are part of JTFA and provide dedicated support for the program which the Human Rights and Special Prosecutions Section leads. The Office of Overseas Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs and Violent Crime and Racketeering Section also provide support. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA and other partners. To date, JTFA’s work has resulted in over 271 domestic and international arrests of leaders, organizers and significant facilitators of human smuggling; more than 211 U.S. convictions; significant jail sentences imposed; and substantial asset forfeiture.
Trailer full of meth lands trafficker in prisonRead the Press Release
McALLEN, Texas – A 51-year-old Edinburg man has been sentenced following his conviction of conspiracy to possession with intent to distribute 200 kilograms of meth, announced U.S. Attorney Alamdar S. Hamdani.
Daren Lynn Lopez pleaded guilty Nov. 16, 2022.
U.S. District Chief Judge Randy Crane has now ordered Lopez to serve 192 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard of Lopez’s long criminal history including three prior felonies. In handing down the sentence, the court noted the additive, potent and dangerous effects meth has on the community.
In March 2022, Lopez arranged for the transportation of a tractor-trailer concealing 200 kilograms of meth to be imported from Mexico. The trailer successfully entered the United States and was driven to Lopez’s truck yard in Edinburg.
Lopez then coordinated and hired a driver to transport the trailer to Dallas. Law enforcement intervened, stopped and seized the trailer on its way north. At that time, they discovered a false compartment spanning the entire roof of the trailer which concealed hundreds of bricks of meth.
The drugs have an estimated street value of $1 million.
Lopez 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. Assistant U.S. Attorney Laura Garcia prosecuted the case.
Local drug trafficker gets life in prison for his role in murder-for-hire plotRead the Press Release
HOUSTON – A 50-year-old man has been sentenced for perpetrating multiple violent crimes related to a drug trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for six hours before returning the guilty verdicts Oct. 31, 2023, on all counts against Ronald Brown aka Nuk, Nook or Nookie following a six-day trial. He was found guilty of conspiracy to commit murder for hire, intentional killing related to drug trafficking, two counts of using a firearm in the commission of a murder, kidnapping and using a firearm in relation to the kidnapping as well as conspiracy to distribute and possess with the intent to distribute cocaine.
U.S. District Judge Sim Lake has now ordered Brown to serve life in federal prison. At the trial, the court heard argument regarding Brown’s repeated attempts to intimidate, influence and kill witnesses in his trial. In handing down the life sentence, the court recommended that Brown be confined in a communications management unit to ensure heightened monitoring of Brown’s external and internal communications.
In December 2013, law enforcement seized 21 kilograms of cocaine from one of Brown’s associates who had placed the bag in a vehicle at a Valero gas station. Brown was upset by the loss and sidelined him from the drug operation at that time.
During trial, the jury heard from several witnesses who testified about working directly for Brown. He was responsible for moving as much as 100 to 200 kilograms of cocaine each week from Houston to Atlanta, Georgia, on 18-wheeler trucks and car haulers. Once in Atlanta, his associates would divide the shipments before delivering it to Brown’s customers.
The jury also heard testimony from one of Brown’s drivers who was robbed of approximately 56 kilograms of cocaine April 18, 2014. Brown suspected the same individual who lost the drugs at the Valero and another drug associate conspired to steal the cocaine from him.
On April 23, 2014, Brown and others kidnapped the associate, zip-tied his arms and legs and put him in the trunk of Brown’s girlfriend’s vehicle. A good Samaritan picked up the victim and attempted to drive him to safety after the victim managed to free himself from the trunk. However, Brown pursued and shot at them repeatedly, ultimately striking the good Samaritan in the upper body and the associate in the head. Both survived.
One of the kidnappers told the jury he met Brown following the kidnapping who directed him to dump the vehicle and gun used during the shooting. Brown also directed his girlfriend to report the vehicle as stolen.
Following the failed attempt to kill this person, Brown began searching for the other man from the Valero incident whom he also thought was part of the alleged theft on April 18, 2023, in order reclaim his drugs. He ultimately decided he wanted to kill him. Testimony revealed Brown was able to obtain the date of the man’s next parole visit. Through a middleman, Brown then hired a shooter and provided him with a handgun.
Following that parole visit on July 1, 2014, the victim returned to his vehicle in the parking lot. The shooter then fired multiple shots at close range at the victim as he sat in the driver’s seat. He died at the scene.
Afterwards, Brown met the shooter and middleman in the parking lot of a grocery store and paid them $20,000.
At the trial, the defense attempted to convince the jury that other members of Brown’s drug trafficking organization orchestrated the kidnapping and murder. They did not believe those claims and found Brown guilty as charged.
He 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 with assistance from the Houston Police Department’s Homicide Division, Texas Department of Criminal Justice – Parole Division, U.S. Marshals Service, Federal Bureau of Prisons and Drug Enforcement Administration.
Assistant U.S. Attorneys Sebastian A. Edwards and Britni Cooper prosecuted the case.
California man sentenced for multimillion-dollar fraud and money laundering schemesRead the Press Release
HOUSTON – A 45-year-old Nigerian national has been ordered to federal prison for his participation in two separate schemes to defraud victim homeowners and a corporation and launder the proceeds of those frauds.
Joseph Modile pleaded guilty Feb. 27, 2023, to charges of conspiracy to commit bank fraud, wire fraud and aggravated identity theft filed in the Eastern District of New York (EDNY) and charges of money laundering and wire fraud filed in the Southern District of Texas (SDTX) and subsequently transferred to the EDNY.
U.S. District Judge Diane Gujarati has now ordered Modile to serve 145 months in prison. As part of the sentence, Modile was also ordered to pay more than $1.5 million each in restitution and forfeiture.
“Although Modile took part in a complicated scheme, involving a cadre of runners and a series of fake documents and bank accounts, his goal was simple - steal from unsuspecting victims,” said U.S. Attorney Alamdar S. Hamdani for the SDTX. “While his crimes stretched to all parts, from Brooklyn to Houston, thanks to the work of two U.S. Attorney’s Offices, Modile will spend several years in one place, a prison cell, no longer able to help fellow criminals prey on the innocent.”
“Modile checked all the boxes for a sophisticated fraud–stealing, deception, money laundering and identity theft. Today’s sentence checks the box for an appropriate penalty for his crimes of greed from Brooklyn to Texas,” stated U.S. Attorney Breon Peace for the EDNY. “I commend the prosecutors from my Office, the U.S. Attorney’s Office for the SDTX and the special agents for their outstanding work unraveling Modile’s scheme.”
“Today’s sentencing is a positive step toward justice for Joseph Modile’s victims – homeowners, business owners and the everyday email users alike who were defrauded of over $15 million as a result of his sophisticated schemes. The defendant spearheaded at least three fraud schemes across the country and over the course of several years. His tactics, while sophisticated, were no match for Homeland Security Investigations (HSI) New York’s El Dorado Task Force Cyber investigators,” stated HSI New York Acting Special Agent-in-Charge Erin Keegan. “I commend HSI New York, the New York City Police Department, the U.S. Attorney’s Offices for the EDNY and SDTX, as well as FBI Houston, for a job well done.”
“FBI Houston, along with our domestic and international law enforcement partners, led an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation on numerous prolific organized crime figures. Modile, for years, was an orchestrator of multi-million-dollar fraud schemes who stole from countless victims around the world,” stated FBI Special Agent-in-Charge Douglas Williams. “Dismantling large-scale criminal enterprises is what the FBI does, and Modile’s sentence should send a message to greedy criminals like him still out there, it’s just a matter of time before we get you too.”
In the SDTX case, from November 2017 until May 2018, Modile knowingly devised a scheme to defraud victims. Modile used his cellular phone to communicate with others about financial transactions for the purpose of executing his scheme. Modile directed an individual already convicted in Houston to withdraw cash from their bank account and provide it to others. Modile also directed the individual in Houston to lie to their financial institution regarding the reason for withdrawing money from their account. In February 2018, Modile orchestrated and directed a substantial amount of money into an account of the individual in Houston. The money derived from wire fraud, and Modile was aware the money came from unlawful activity.
In the case filed in the EDNY, from January 2014 and September 2018, Modile and others defrauded victims, businesses and financial institutions in the United States through a sophisticated home equity line of credit (HELOC) scheme involving a series of bank account takeovers. During this time, Modile and others also laundered proceeds from the bank account takeovers. In furtherance of the HELOC fraud scheme, Modile and others acquired personal identifying information (PII) of the actual holders of the targeted bank accounts at the financial institutions. The co-conspirators then used the PII to impersonate the actual holders of the targeted bank accounts, thereby gaining control of the accounts. In some cases, members of the conspiracy recruited “runners,” who impersonated the actual account holders inside bank branches using forged and fraudulent identification documents created at Modile’s direction. In most instances, the stolen funds were first deposited into fraudulent bank accounts co-conspirators set up and controlledin the names of the actual victims from whom the money had been stolen. In other cases, the bank accounts into which the stolen funds were first deposited were in the names of sham corporations, which were opened using false and fraudulent identification. In total, Modile and others stole at least $5 million as part of the HELOC fraud scheme.
In May 2018, Modile and others engaged in a separate business email compromise scheme using fraudulent emails and telephone calls to steal approximately $10.2 million from a victim company. The co-conspirators used a fraudulent email address to impersonate a contractor of an entity located in St. Paul, Minnesota, and directed representatives of that entity to deposit the funds in an account members of the conspiracy controlled. Modile and others then laundered those stolen funds through bank accounts that co-conspirators controlled.
FBI and Homeland Security Investigations conducted the investigation.
This effort is part of an OCDETF operation. 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 at https://www.justice.gov/OCDETF
Assistant U.S. Attorney (AUSA) Rodolfo Ramirez prosecuted the case along with EDNY AUSA David Pitluck.
Gun smuggler sent to prison for second illegal re-entry convictionRead the Press Release
LAREDO, Texas – A 23-year-old Mexican man has been sentenced following another conviction for illegally re-entering the United States following an order of removal, announced U.S. Attorney Alamdar S. Hamdani.
Jose Luis Arevalo Gonzalez pleaded guilty Jan. 4.
U.S. District Judge Marina Garcia Marmolejo has now ordered Arevalo to serve 23 months in federal prison to be immediately followed by three years of supervised release. Not a U.S. citizen, Arevalo is expected to face removal proceedings following his imprisonment. At the hearing, the court heard how Arevalo was a member of the Paisas gang and was previously convicted of trafficking firearms.
In that case, law enforcement discovered Arevalo was attempting to smuggle 11 semi-automatic rifles and 85 rifle magazines into Mexico.
Arevalo was released from prison Oct. 18, 2023, and was ordered removed the following week. A week after his removal, authorities encountered Arevalo near Laredo.
Arevalo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Special Assistant U.S. Attorney Terence A. Check Jr. prosecuted the case.
Nine buckets of narcotics: trafficker admits to importing $340,000 of liquid meth in fuel tankRead the Press Release
LAREDO, Texas – A 41-year-old resident of Monterrey, Mexico, has pleaded guilty to importing 300 pounds of meth, announced U.S. Attorney Alamdar S. Hamdani.
On Nov. 22, 2023, Allan Alberto Moreno Trevino approached the Laredo Colombia Solidarity International Bridge Port of Entry driving a white 2004 Ford F-250 pickup truck. Law enforcement subsequently referred him to secondary inspection where an x-ray revealed anomalies within the vehicle’s fuel tank.
While inspecting the vehicle, authorities noticed Moreno Trevino pacing and appearing nervous, eventually asking them if something had been found.
Authorities eventually discovered the fuel tank was filled with liquid meth mixed with gasoline. Law enforcement extracted nine buckets of the mixture with an approximate gross weight of 137.2 kilograms and an estimated street value of $340,000.
As part of his plea, Moreno Trevino stated he expected to be paid between $1,500 and $2,000 for transporting the drugs from Mexico.
He also admitted knowing the fuel tank contained a controlled substance which he was to deliver to others in San Antonio where the liquid meth would then be extracted.
U.S. District Judge Diana Saldaña will set sentencing at a later date. At that time, Moreno Trevino faces up to life in prison and a possible $10 million maximum fine.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Homero Ramirez is prosecuting the case.
Man Convicted of $5.6M International Advance-Fee SchemeRead the Press Release
A federal jury in the Southern District of Texas convicted an Indiana man yesterday for his role in an international advance-fee scheme orchestrated from Nigeria that defrauded victims 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. His co-conspirators, who were based in Nigeria, 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. bank accounts and directed the proceeds to the ringleaders in Nigeria.
The jury convicted Nwosisi of conspiracy to commit money laundering and concealment money laundering. He is scheduled to be sentenced on June 13 and faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri 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 are prosecuting the case.
Houston group arrested for running pharma-grade drug stash houseRead the Press Release
HOUSTON – Six Houstonians have been taken into custody for conspiracy to distribute controlled substances, specifically pharmaceutical grade drugs such as oxycodone and hydrocodone, announced U.S. Attorney Alamdar S. Hamdani.
Kerry Lewis Walker, 36, Gerald Dewayne Williams, 65, Trey Demon Neal, 34, James Glen Turk, 21, Quineshia Evangeline Hollins, 33, and Uzoanuuli Uzoaku WJ Payne, 52, will make their initial appearances before U.S. Magistrate Judge Christina A. Bryan at 2 p.m.
The indictment returned Feb. 14, and unsealed upon the arrests, alleges the group operated the “Green Houses,” a street level stash house in Fifth Ward that sold pharmaceutical controlled substances. Williams and Walker allegedly ran the Green Houses with the assistance of Neal and Turk.
Hollins was the owner of First Choice Rx 245 pharmacy and supplied the Green Houses with drugs from her business, according to the charges.
The indictment further alleges Payne was a pharmacist at First Choice. Law enforcement allegedly intercepted him driving a new shipment of controlled substances from the pharmacy without any lawful reason.
According to the charges, there are thousands of pharmaceutical grade drugs missing from First Choice without any accompanying prescriptions or proper forms allowing their disbursal.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of FBI and and IRS Criminal Investigation. 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 Celia Moyer is prosecuting the case.
If convicted, they face up to 20 years in prison and a possible $1,000,000 maximum fine.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Standoff with armed felon leads to firearm convictionRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old Corpus Christi resident has admitted to being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Robert Spencer was set to begin trial this week, but has instead opted to enter a guilty plea.
On Aug. 4, 2022, authorities responded to a murder reported to have occurred around the 1800 block of Van Loan Ave. in Corpus Christi. They observed Spencer in the area and appeared to be armed. When authorities approached him, Spencer fled into his nearby home which initiated an hour-long standoff.
During that time, Spencer yelled at law enforcement to leave the area. Authorities also heard two gunshots. He exited his home without a firearm, at which time, they arrested him.
Law enforcement obtained a search warrant for Spencer’s residence and discovered six pipe bombs, four firearms and boxes of ammunition in the attic. He admitted to personally assembling the pipe bombs.
As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
Further testing confirmed the pipe bombs to be destructive devices as the law defines. The pipe bombs were not properly registered to Spencer in the National Firearms Registration and Transfer Record.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing June 4. At that time, Spencer faces up to 15 years in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Patrick Overman and John Marck are prosecuting the case.
Man convicted of multimillion-dollar international advance fee schemeRead the Press Release
HOUSTON – A federal jury has convicted an Indiana man for his role in a multimillion-dollar international advance fee scheme orchestrated from Nigeria, 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.
According to court documents and evidence presented at trial, 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. Co-conspirators based in Nigeria 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. bank accounts and directed the proceeds to the ringleaders in Nigeria.
The jury heard that victims around the world have lost a combined total of more than $5.6 million.
“Those who enable fraudsters by helping them move and hide money taken from victims are just as responsible for their crimes as the people who run the scam themselves,” said U.S. Attorney Alamdar S. Hamdani. “Nwosisi took nearly $1 million from victims to enrich himself and his co-conspirators. He deserves to face the consequences for his crimes.”
The jury convicted Nwosisi of conspiracy to commit money laundering and concealment money laundering. He will be scheduled for sentencing at a later date. At that time, he faces a maximum penalty of 20 years in prison.
To date, six others have been convicted for their roles in the scheme.
Nwosisi was permitted to remain on bond pending sentencing.
The FBI and Department of State - Office of Inspector General conducted the investigation.
Assistant U.S. Attorney Christian Latham is prosecuting the case along with Trial Attorney Philip Trout of the Criminal Division’s Fraud Section of the Department of Justice.
Two convicted in multimillion-dollar adult daycare fraud schemeRead the Press Release
McALLEN, Texas – A federal jury has returned guilty verdicts against a doctor and a clinic employee for receiving illegal kickbacks after ordering unnecessary lab tests and prescriptions, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately three hours before finding Dr. Osama Nahas, 69, McAllen, and Isabel Pruneda, 53, Edinburg, guilty of conspiracy to commit healthcare fraud, healthcare fraud and conspiracy to violate the Anti-Kickback Statute following a two-week trial. Pruneda was also convicted for aggravated identity theft.
“Adult day cares are supposed to be places where the elderly and vulnerable feel safe, not vehicles for scheming doctors and staff to make illegal profits through kickbacks and get-rich quick opportunities” said Hamdani. “Nahas and Pruneda preyed on the elderly by bribing their way into adult care facilities, abusing the trust and respect that doctors and medical professionals ordinarily deserve. Today’s conviction sends a message that patients should never be seen merely as dollar signs and that kickbacks play no role in the services that doctors order.”
Nahas is the owner and physician at Crosspoint Medical Clinic in Edinburg. He would travel to adult day care centers around the Rio Grande Valley ordering unnecessary lab tests and prescriptions on behalf of elderly and vulnerable clients who were spending time there. Pruneda, a medical assistant at Crosspoint, assisted Nahas in the scheme, helping to forge patient signatures on consent forms and misappropriate expensive patient medications such as pain creams. Among other things, Pruneda would strip patient information off and remove creams from their boxes so that she could hand them out as “goodie bags” to incentivize patients to be tested.
From January 2016 to December 2017, Nahas and Pruneda ordered unnecessary lab tests and prescriptions which resulting in millions in losses. They directed those prescriptions and tests to companies who then paid them in kickbacks.
In June 2018, law enforcement executed a search warrant at Crosspoint and found hundreds of thousands in stolen medications.
Nahas and Pruneda also bribed their way into the adult daycare facilities by offering kickbacks to the adult daycare owners disguised as “rent” payments.
The jury heard witness testimony revealing both Nahas and Pruneda accepted bribes in exchange for referrals, many of which were also disguised as “rent” payments.
Evidence revealed that both received tens of thousands of dollars in kickbacks from January 2016 to December 2017.
Nahas attempted to convince the jury the payments he received were legitimate “rent” payments for the use of space, and Pruneda ordered all the prescriptions and lab tests without his consent. Conversely, Pruneda’s defense argued she was doing what Nahas taught her and following orders, and she denied committing any forgeries. The jury did not believe those claims and found both guilty as charged.
U.S. District Chief Judge Randy Crane presided over the trial and set sentencing for May 16. At that time, both face up to 10 years in federal prison for the healthcare fraud conspiracy and each substantive healthcare fraud conviction, while the kickback conspiracy carries another possible five years in prison. For aggravated identity theft, Pruneda must also serve a mandatory two years which must be served consecutively to any other prison term imposed. They could also be ordered to pay up to $250,000 in fines.
Pruneda was taken into custody while Nahas was permitted to remain on bond pending their detention hearings set for March 4 and 8, respectively.
The FBI, Department of Health and Human Services – Office of Inspector General (OIG), Texas Attorney General’s Medicaid Fraud Control Unit and Texas Health and Human Services - OIG conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Brad Gray are prosecuting the case.
Last-minute plea entered in cocaine conspiracyRead the Press Release
BROWNSVILLE, Texas – A 45-year-old Brownsville resident has admitted to his role in the distribution of dozens of kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Raul Dominguez-Vega, 45, was set to begin trial March 4. He has now entered a plea of guilty to possession with intent to distribute cocaine and conspiracy to do so.
Dominguez-Vega was part of an on-going drug conspiracy involving several individuals packaging and distributing cocaine coming from Mexico. Cocaine would arrive from Mexico and be stored, re-packaged and wrapped in “shrink-wrap” in a shed located in Dominguez-Vega’s residence. It was then distributed to northern locations such as Houston, Ohio and Louisiana.
Law enforcement conducted surveillance and made several seizures during the course of the investigation. Two of those occurred Jan. 25 and 31, 2020, when they successfully seized nearly 10 and 23 kilograms of cocaine, respectively. Prior to the second seizure, bags of cocaine had been loaded into a vehicle at Dominguez-Vega’s residence. It was on its way to Houston before authorities at the Sarita Border Patrol (BP) checkpoint discovered the bundles inside a tractor trailer.
U.S. District Judge Rolando Olvera will impose sentencing May 22. At that time, Dominguez-Vega faces a minimum of 10 years and up to life in prison as well as a possible $5 million fine.
He was permitted to remain on bond pending that hearing.
T0 date, six others have been convicted in relation to the conspiracy.
Homeland Security Investigations, Cameron County District Attorney’s Investigation Unit and Drug Enforcement Administration conducted the investigation with the assistance of BP, Combes and Brownsville Police Departments and the Victoria County Sheriff’s Office. Assistant U.S. Attorney Oscar Ponce is prosecuting the case.
Trucker convicted for trafficking several aliens into South TexasRead the Press Release
CORPUS CHRISTI, Texas – A federal jury has returned a guilty verdict against a 51-year-old man for unlawfully transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately 45 minutes before finding Andrew Rafael Martinez-Peralta, Newark, New Jersey, guilty following a two-day trial.
On July 5, 2023, Martinez-Peralta drove a tractor-trailer to the Sarita Border Patrol checkpoint. During a search, a K-9 alerted to the sleeper area where authorities subsequently discovered seven illegal aliens concealed within the bed compartment of the tractor, in a toolbox under the bed and inside a closet.
The jury heard how authorities found the aliens’ cell phones directly above Martinez-Peralta’s head. Testimony revealed he had collected the phones while transporting them to the checkpoint.
A witness also stated that he had agreed to pay $25,000 to be smuggled into the United States from Brazil with a final destination in Massachusetts.
At the trial, Martinez-Peralta testified and argued he had no knowledge of the illegal aliens’ presence in his vehicle despite checking the bed compartment before traveling to the checkpoint. The jury ultimately did not believe those claims and found him guilty as charged.
“Martinez-Peralta claimed he didn’t know that there were seven migrants in the sleeper area of his tractor-trailer, a claim so incredible that it took the jury less than an hour to find him guilty,” said Hamdani. “The smuggling of migrants across Texas’s southern border is a pernicious problem made worse by human smugglers, like Martinez-Peralta, who use their tractor-trailers and the cover of legitimate commercial activities to mask illegal and harmful activities.”
U.S. District Judge David S. Morales presided over the trial and set sentencing for May 22. At that time, Martinez-Peralta faces up to five years in federal prison and a possible $250,000 maximum fine.
Martinez-Peralta was permitted to remain on bond pending sentencing.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys John Marck and Tyler Foster prosecuted the case.
Retired sergeant imprisoned for sending child pornography via online chat groupRead the Press Release
GALVESTON, Texas – A 50-year-old Texas City resident has been sentenced for distribution of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Ryan N. Curving pleaded guilty Aug. 22, 2023.
U.S. District Judge Jeffrey V. Brown has now ordered him to serve 120 months in federal prison. At the hearing, the court heard additional evidence as to how Curving, a retired police sergeant from the Paterson, New Jersey, Police Department, sent child pornography videos to five other individuals through Kik Messenger. In handing down the prison term, the court noted that Curving’s actions of distributing those videos perpetuates the harm caused to the victims that are being sexually abused in the videos. Curving was further ordered to pay a $5,000 assessment to the Justice for Victims Trafficking Act and a $5,000 assessment to the Amy, Vicky and Andy Child Pornography Victim Assistance Act. He will also serve 10 years on supervised release following completion of his prison term, during which time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Curving will also be ordered to register as a sex offender.
“Curving hid behind a computer and watched helpless minor children being raped and abused,” said Hamdani. “It is deplorable that someone who worked as an officer for 25 years and took an oath to serve and protect the public, did just the opposite. This sentence demonstrates our dedication to holding anyone – regardless of their background – accountable for their part in the exchange of images that do nothing more than harm innocent lives.”
Curving had joined an online chat group on Kik that is known for the trading of child pornography and pictures of relatives as well as discussions and fantasies of familial sexual abuse.
Curving came to the attention of law enforcement after utilizing his Kik account to distribute child pornography. On Dec. 6, 2022, authorities executed a search warrant at his residence. At that time, he admitted to downloading and sending child pornography to other Kik users and had been curious about child pornography for two years.
Additionally, he admitted to creating a second Kik account in order to continue his conduct following the termination of his first one after administrators found child pornography in it.
Curving was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations-Galveston conducted the investigation with the assistance of police departments in Pearland and Galveston and the Houston Metro Internet Crimes Against Children task force.
Assistant U.S. Attorney Kimberly Ann Leo 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.
Former peace officer convicted of drug trafficking and related crimeRead the Press Release
HOUSTON – A 49-year-old resident of Houston has been convicted of attempted possession with intent to distribute heroin and money laundering, announced U.S. Attorney Alamdar Hamdani.
A federal jury deliberated for eight hours before convicting Mohammed “Alex” Ahmed Kassem following a four-day trial.
Kassem is a former investigator with the Waller County District Attorney’s (DA) Office. At the trial, the jury heard how he escorted sham heroin and cartel drug money across state lines. He drove from Louisiana to Houston and Houston to San Antonio in his marked police vehicle on three separate occasions for which he was paid a total of $31,000.
Testimony further revealed Kassem hid money in his bulletproof vest and disguised the sham heroin in an evidence bag to avoid detection.
During the trial, audio and video recordings were presented of each transaction and related text messages. The jury also saw bank records of cash deposits made to Kassem’s personal account after each payment.
Kassem took the stand in his own defense claiming he had authority to commit these crimes. Kassem also maintained that he received implicit approval from the Waller County DA to conduct undercover investigations as part of his role at the DA’s Office. However, the jury heard testimony from his former employer which refuted those statements. The jury ultimately did not believe those claims and found him guilty.
“When Alex Kassem wore his Waller County peace officer credentials and Waller County-issued firearm while transporting what he thought were drugs in his Waller County-issued vehicle and then accepted what he thought was cartel drug money, he breached the most sacred of trusts—the trust a community places in its law enforcement,” said Hamdani. “Today’s conviction brings Kassem one step closer to exchanging his peace officer attire for prison-issued garb, and to restoring a trust once lost.”
“Alex Kassem was a criminal in disguise. He cloaked himself in his trusted position as a licensed peace officer and Waller County DA investigator while working to enrich himself by shamelessly moving money and drugs in his work vehicle and hidden in his police vest,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “Kassem is now a convicted federal felon thanks to the relentless work of FBI Bryan agents and our partners at the Drug Enforcement Administration (DEA) who unmasked his corruption and criminal ways.”
U.S. District Judge Lee Rosenthal presided over the trial and set sentencing for June 13. At that time, Kassem faces up to life in prison for the heroin trafficking conviction and up to 20 years for money laundering. He could also be ordered to pay up to $10 million in fines.
Previously released on bond, Kassem was taken into custody following the conviction where he will remain pending sentencing.
The FBI conducted the investigation with the assistance of the DEA. Assistant U.S. Attorneys Carolyn Ferko and Heather Winter are prosecuting the case.
Prior felon charged with gunpoint robbery of five StarbucksRead the Press Release
HOUSTON – A 24-year-old Houston resident has been indicted on multiple counts of robbery, brandishing a firearm and illegal possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Kentrelle Tatum is set to appear for his detention hearing before U.S. Magistrate Judge Andrew Edison at 11 a.m.
A federal grand jury returned the indictment Feb. 15 which alleges five counts of robbery, four counts of brandishing a firearm and one count of illegal possession of a firearm as a felon.
From Sept. 5 to Sept. 11, 2023, Tatum allegedly robbed five separate Houston-area Starbucks establishments over the course of six days while brandishing a firearm.
As a convicted felon, he is prohibited from possessing a firearm per federal law.
If convicted, Tatum faces up 20 years in federal prison for each of five counts of robbery, while a conviction for being a felon in possession of a firearm carries a possible 10-year prison term. Each of the charges could also result in fines of up to $250,000. He is also charged with four counts of brandishing a firearm while committing a crime of violence which carries a mandatory seven years to be served consecutively to any other prison term imposed.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with assistance from the Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorney Francisco J. Rodriguez 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.
Mexican man imprisoned for organizing multiple cocaine shipmentsRead the Press Release
McALLEN, Texas – A 36-year-old resident of Tamaulipas, Mexico, has been sentenced following his conviction for trafficking cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Manuel Alejandro Soto-Bazan pleaded guilty Dec. 19, 2022.
Chief U.S. District Judge Randy Crane has now ordered Soto-Bazan to serve 135 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence that detailed how Soto-Bazan organized multiple cocaine shipments to be smuggled into the United States. In handing down the sentence, the court noted that Soto-Bazan played a key role in the trafficking scheme.
At the time of his plea, Soto-Bazan admitted he facilitated multiple cocaine shipments into the United States through the Hidalgo port of entry.
Between April and June 2022, Soto-Bazan coordinated at least four separate shipments of cocaine totaling approximately 20 kilograms. Soto-Bazan would direct others who were smuggling drugs into the United States in vehicles to specific locations. He would then coordinate the transfer of the drugs to other vehicles for further distribution.
The drugs Soto-Bazan was responsible for transporting had an estimated street value of $200,000.
Soto-Bazan admitted he was paid to traffic drugs and assisted in removing drugs from concealed compartments hidden in vehicles after their entry into the United States.
He 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 Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Theodore Parran III prosecuted the case.
Insider trading – Husband illegally profits $1.7M after using wife’s private company informationRead the Press Release
HOUSTON – A 42-year-old Houston man has pleaded guilty to securities fraud, announced U.S. Attorney Alamdar S. Hamdani.
Tyler Loudon made $1.7 million in illegal profits from the purchase and sale of stock market shares.
Loudon’s wife was an associate manager in mergers and acquisitions at an internationally-based oil and gas company. Loudon learned that her company was planning to purchase a travel center operator business.
Unbeknownst to his spouse, Loudon used the non-public information about the expected acquisition to purchase 46,450 shares ahead of the public notice.
After the announcement, the travel center operator’s stock price increased. Loudon then sold his shares for a substantial profit.
As part of his plea agreement, Loudon agreed to forfeit the $1.7 million in illegal proceeds.
U.S. District Judge Sim Lake accepted the plea and has set sentencing for May 17. At that time, Loudon faces up to five years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and the Financial Industry Regulatory Authority. Assistant U.S. Attorney Karen M. Lansden is prosecuting the case.
South Texan imprisoned for stolen identity and plot to smuggle firearms to MexicoRead the Press Release
CORPUS CHRISTI, Texas – A 32-year-old Brownsville man has been sentenced for aggravated identity theft and straw purchasing in connection to a firearm purchasing scheme out of Texas into Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Leonardo Barroso pleaded guilty June 9, 2022.
U.S. District Judge David S. Morales has now ordered Barroso to serve 87 months for the straw purchase conviction and a mandatory 24 months for the identity theft to be served consecutively for a total of 111 months in federal prison. The sentence will be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Barroso worked as a door-to-door electricity salesman who used his customers’ personal information to purchase firearms in San Antonio and Corpus Christi. Barroso purchased over 20 firearms to be smuggled into Mexico and intentionally delivered to cartel members.
On Feb. 7, 2022, Barroso purchased a firearm from a dealer in Corpus Christi using a Social Security number and identification that belonged to a known victim of identity theft. He then used the stolen identification to purchase a firearm for a third party to smuggle into Mexico. Barroso additionally provided false and misleading statements to the firearms dealer upon completing required paperwork for the purchase.
Barroso also admitted to law enforcement he was transporting other firearms out of the United States. He served as a facilitator by recruiting Mexican nationals to purchase numerous firearms from dealers in Texas to be smuggled into Mexico.
Barroso 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. Attorneys John Marck and Lance Watt prosecuted the case.
South Texan imprisoned for producing child pornography of two minors for over a yearRead the Press Release
BROWNSVILLE, Texas – A 34-year-old Weslaco man has been sentenced for possession of child pornography and sexual exploitation of a child, announced U.S. Attorney Alamdar S. Hamdani.
Ulysses Rubalcava pleaded guilty Oct. 31, 2023.
U.S. District Judge Fernando Rodriguez Jr. considered victim impact statements and imposed a total of 360 months in federal prison. At the hearing, the court noted Rubalcava’s remorse, but explained how society deems these crimes as particularly heinous and that the court must protect children and the public to deter this type of crime. Garza was further ordered to serve 24 years on supervised release following the completion of his sentence. 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. A restitution hearing has been scheduled for April 23.
The investigation began in June 2021 when authorities learned of concerning behavior and photos believed to be the sexual assault of a child.
Law enforcement conducted a search of Rubalcava’s cellphone in which they discovered numerous saved child pornography files including the sexual assault of two minors. Following an investigation, authorities determined Rubalcava had been grooming and abusing two minor girls for more than a year. He eventually began producing child pornography images and videos of himself with the young girls.
Rubalcava 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 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.