Southern District of Texas
Press releases recorded for this federal judicial district.
Leader of drug trafficking organization imprisoned for international cocaine distribution schemeRead the Press Release
HOUSTON – A 44-year-old local man has been sentenced for his involvement in an ongoing cocaine distribution scheme that spanned more than nine years, announced U.S. Attorney Alamdar S. Hamdani.
Francisco Rene Luna pleaded guilty April 11, 2022.
U.S. District Andrew S. Hanen has now ordered Luna to serve 216 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court found Luna to be a leader and organizer of the drug trafficking conspiracy who maintained three locations in Houston he used to stash drugs and drug proceeds. In handing down the sentence, the court noted Luna was directly involved in the importation of the drugs.
“The Gulf Cartel is one of the most violent and brutal drug trafficking organizations, posing a threat to the citizens of both the United States and Mexico,” said Hamdani. “Luna, a trusted associate of this criminal enterprise, participated in the importation of thousands of kilograms of dangerous drugs into our country for sale in our communities. Today’s sentence reflects our commitment to dismantling destructive drug trafficking organizations, wherever they are.”
Luna admitted he was a leader of a drug trafficking organization while residing in Houston. His role was to oversee the receipt of cocaine smuggled in from in vehicles on a monthly basis during the course of the eight-year conspiracy. The Gulf Cartel supplied the cocaine.
The drugs were eventually further distributed to others across the United States.
In December 2015, law enforcement seized 176 kilograms of cocaine, two kilograms of meth and $3.5 million in drug proceeds after executing search warrants at stash houses in Houston the organization controlled.
Luna was a fugitive for four years until his arrest in Monterrey, Mexico, in June 2019 as part of a joint Mexican and American law enforcement operation. He was subsequently removed from Mexico and transported to Houston for prosecution.
While he was a fugitive, Luna continued to run his drug operations from Mexico.
To date, 15 have been convicted in relation to the conspiracy.
Luna 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, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Houston Police Department conducted the investigation.
This Operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides 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 designated Consolidated Priority Organization or Regional Priority Organization Targets head with their affiliates and that impact Houston and south Texas.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal J. Alaniz prosecuted the case.
Convicted sex offender imprisoned on additional child pornography offensesRead the Press Release
GALVESTON, Texas – A 37-year-old San Leon resident has been sentenced for possession and receipt of child pornography as well as distribution of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Robert James Alden pleaded guilty April 11, 2023.
U.S. District Judge Jeffrey V. Brown has now ordered Alden to serve a total of 240 months in federal prison. At the hearing, the court noted the sentence reflected the severity of the materials Alden was using and his propensity to predation. Alden was further ordered to pay a total of $22,000 in restitution to the known victims and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. At the time of the offense, Alden was a registered sex offender and will continue to be upon release from custody.
“Today’s sentence makes it clear that online child predators will be prosecuted to the fullest extent of the law,” said Hamdani. “A convicted sex offender who continues seeking children online for sex will face swift and strong punishment.”
At the time of the plea, Alden admitted to communicating with whom he believed to be a 13-year-old female. During the message exchange, Alden requested nude photos from the minor, sent a video of child pornography to her and suggested they produce their own pornographic videos.
On March 9, 2021, authorities executed a federal search warrant and recovered multiple media devices, including his phone which contained multiple images and videos of child pornography.
Alden will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations-Galveston conducted the investigation with assistance from the Pearland Police Department and Houston Metro Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Richard W. Bennett 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.
Convicted Corpus felon heads to prison for illegal possession of ammunition and handgunRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi resident has been sentenced following his conviction for felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Adalberto Pena pleaded guilty June 13, 2023.
U.S. District Judge David S. Morales has now ordered Pena to serve 87 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information regarding Pena’s history of possessing firearms as a convicted felon, which includes four incidents in the 14 months preceding his arrest. The four prior incidents involved 10 firearms and included a silencer.
The investigation revealed Pena was possibly involved in selling narcotics and possessing a firearm as a convicted felon. On Dec. 22, 2022, law enforcement conducted surveillance at his residence in Corpus Christi.
At that time, authorities saw a vehicle leave the house without license plate lights and initiated a traffic stop. Pena informed law enforcement he did not have identification. Authorities then conducted a search of his vehicle which revealed 9mm and .223 ammunition inside the cup holder as well as a Taurus handgun with a loaded magazine in the glove box.
Pena was previously convicted of a felony for possession of cocaine in 2011. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
Pena 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 and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Liesel Roscher prosecuted the case.
This case was prosecuted 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.
Two sent to prison for stealing nearly $3M in IRS refundsRead the Press Release
HOUSTON – Two men have been sentenced for their roles in a scheme to cash stolen tax checks, announced U.S. Attorney Alamdar S. Hamdani.
Benjamin Thomas, 38, Richmond, and Kuljinder Singh Hunjan, 38, Spring Valley, New York, pleaded guilty and Oct. 2 and Feb. 16, 2023, respectively.
U.S. District Chief Judge Randy Crane has now imposed a 90-month-term of imprisonment for Thomas, while Hunjan received 42 months. Both must also serve three years of supervised release following their sentences and were ordered to pay restitution in the amount of $4,483,987.89. In handing down the prison terms, Judge Crane noted they engaged in a complex and sophisticated fraud scheme.
In approximately January 2022, authorities learned of a Houston couple who never received their $2,932,446.84 IRS refund check they were expecting in the mail.
The investigation revealed Hunjan and Whitley Rachelle Carter had used fake IDs with the victims’ names, dates of birth and Social Security numbers to open accounts at Regions Bank on various dates in January 2022
On Jan. 18, 2022, Hunjan and Carter deposited the victims’ refund check into the fraudulent bank account.
Authorities were able to identify Hunjan and Carter from bank surveillance. Hunjan’s fingerprints were also found on the check. The investigation linked Carter to Hunjan and Thomas by phone calls and cash app transactions.
On April 13, 2022, authorities arrested Thomas as he was driving a stolen Lamborghini. At that time, he possessed two debit cards for fraudulently-created accounts that were used to receive the proceeds of the aforementioned refund check. These accounts were opened with stolen identities of others to launder the proceeds of the nearly $3 million check.
Thomas also had an ATM receipt showing a withdrawal of $800 from the Regions bank account that received the check.
Toll records from the cellphone Thomas possessed at the time of his arrest indicate that he contacted Hunjan numerous times during the course of the conspiracy.
Carter, 33, Houston, is set for sentencing May 21. At that time, she faces up to 30 years in federal prison as well as a possible $1 million maximum fine.
Hunjan and Thomas were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS Criminal Investigation, Treasury Inspector General for Tax Administration, Houston Police Department, FBI and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.
Huffman resident sent to prison for images of children being sexually assaultedRead the Press Release
HOUSTON – A 65-year-old man has been sentenced for receipt of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Steve Howie Nelson pleaded guilty Sept. 29, 2023.
U.S. District Judge Keith P. Ellison has now ordered Nelson to serve 180 months in federal prison. He will also serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Nelson will also be ordered to register as a sex offender.
The investigation revealed Nelson had been viewing child pornography in a peer-to-peer platform. On Feb. 22, 2019, authorities executed a search warrant at his Huffman residence, at which time they found more than 25 images of child pornography on his laptop. These images depicted adult males sexually assaulting minor females from 10 to 14 years of age.
Nelson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation.
Assistant U.S. Attorneys Kimberly Leo and Jay Hileman 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.
Cuban national convicted of trafficking aliens in rotten produceRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has returned a guilty verdict against a 38-year-old man for transporting illegal aliens within the United States, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately 90 minutes before convicting Illeysel Carcasses following a two-day trial that included 10 witnesses.
On Nov. 13, 2023, Carcasses drove a refrigerated box truck to the Sarita Border Patrol (BP) checkpoint. Upon initial inspection, a K-9 alerted to the rear of the truck. During a search, authorities discovered five undocumented individuals concealed inside the back of the vehicle hidden amongst pallets of rotten produce. The jury heard how the individuals were locked inside with no way of escaping.
Carcasses denied having keys to open the rear of the vehicle. However, authorities had discovered the keys in the truck’s cab. Evidence also showed that his cell phone was present at the location where the undocumented individuals were loaded into the vehicle.
The defense attempted to convince the jury that Carcasses was unaware the undocumented individuals were concealed in his truck. The jury did not believe those claims and found him guilty as charged.
U.S. District Judge David S. Morales presided over the trial and set sentencing for May 8. At that time, Carcasses faces up to five years in federal prison and a possible $250,000 maximum fine.
Carcasses was permitted to remain on bond pending sentencing.
Homeland Security Investigations and BP conducted the investigation. Assistant U.S. Attorneys John Marck and Joseph Griffith are prosecuting the case.
“Logistics coordinator” sent to prison for drug traffickingRead the Press Release
BROWNSVILLE, Texas – A 33-year-old Houston woman has been sentenced for her convictions of possession with intent to distribute more than five kilograms of cocaine and conspiracy to do so, announced U.S. Attorney Alamdar S. Hamdani.
U.S. District Judge Rolando Olvera deliberated for three days before convicting Brenda Banessa Leal March 7, 2023. The bench trial began Feb. 27, 2023, and concluded March 1, 2023.
Judge Olvera has now ordered Leal to serve 120 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Leal’s testimony at trial was not credible and the evidence against her led to her conviction.
During trial, the court heard evidence that since at least 2018, Leal assisted several family members who were part of a drug trafficking organization. She helped transport narcotics, primarily cocaine, from Mexico to Laredo and the Rio Grande Valley. The drugs were hidden in the rear differential in tractor trailers.
Several members of the organization reside in Cadereyta, Nuevo Leon, Mexico where Leal has lived the majority of her adult life. She also assisted family members in transporting bulk cash money, ammunition and weapons to Mexico.
The court saw evidence of text and WhatsApp messages between co-conspirators, jail call recordings and videos detailing Leal’s criminal actions.
The investigation revealed that between February 2021 and June 2021, Leal was the logistics coordinator of the drug trafficking organization. In that role, she coordinated drivers, dealers and cover loads on this side of the border. In June 2021, while Leal and co-conspirators were preparing to unload a tractor truck that contained approximately 33 kilograms of cocaine, the organization got robbed (“ripped”) of the cocaine by another drug trafficking organization.
Authorities apprehended that group shortly after stealing the cocaine from Leal.
The defense attempted to convince the judge that Leal did not have knowledge of the cocaine that was hidden in the tractor trailer and was simply a victim of the “rip crew.” Judge Olvera did not believe those claims and found Leal guilty as charged.
Leal 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, IRS - Criminal Investigation, U.S. Marshals Service and the High Intensity Drug Trafficking Area Task Force conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Texas Department of Public Safety. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorneys (AUSA) Alejandra Andrade and former AUSA Ed Rodriguez prosecuted the case.
Transporting $800,000 of liquid meth sends trafficker to prison for over two decadesRead the Press Release
McALLEN, Texas – A 54-year-old naturalized citizen residing in Mexico has been sentenced for importing nearly 91 pounds of meth from Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Manuel Ignacio Ley Villa pleaded guilty Nov. 28, 2023.
U.S. District Judge Micaela Alvarez has now ordered Ley Villa to serve 255 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Ley Villa had been previously convicted for the same offense.
On April 30, 2023, Ley Villa approached the Hidalgo port of entry driving a maroon Chrysler Pacifica. Law enforcement noticed he appeared nervous and referred him to secondary inspection. There, an X-ray inspection revealed anomalies within the vehicle’s fuel tank.
Upon further investigation, law enforcement discovered a fuel tank filled with a liquid material which crystalized upon contact with the floor. The weight of the liquid meth was approximately 41.14 kilograms and had an estimated street value of $810,000.
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 conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Jose A. Garcia prosecuted the case.
Out of state man imprisoned for organizing meth shipment via local POERead the Press Release
McALLEN, Texas – A 39-year-old resident of Belton, South Carolina, has been ordered to federal prison following his conviction for trafficking meth, announced U.S. Attorney Alamdar S. Hamdani.
Jeffery Wills pleaded guilty June 20, 2023.
Senior U.S. District Judge Micaela Alvarez has now ordered Wills to serve 135 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that detailed how Wills served as a key player in handling narcotics imported from Mexico for distribution along the East Coast. In handing down the sentence, the court noted that drug trafficking throughout the United States impacts the safety and security of communities along the U.S. border.
At the time of his plea, Wills admitted he facilitated a shipment of meth into the United States through the Hidalgo port of entry.
On July 31, 2021, co-conspirators Jasmine Dorsey, 28, and Iyana Carter, 25, both of Newnan, Georgia, attempted to enter the United States with 35 baggies of meth totaling 17 kilograms concealed in the fuel tank of their vehicle. They admitted to smuggling narcotics and identified Wills as the individual who assisted and contributed to the drug trafficking ring by coordinating cash transfers and providing cell phones.
Dorsey and Carter were ordered to deliver the meth to Wills for further distribution.
Law enforcement later arrested Wills at his residence in South Carolina. At that time, he was in possession of significant quantities of marijuana, heroin, crack cocaine, cocaine, meth and dimethyltryptamine – a hallucinogenic drug – as well as 11 firearms.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Dorsey and Carter also pleaded guilty and were ordered to serve 64 and 78 months in federal prison, respectively, to be immediately followed by three years of supervised release for both.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Theodore Parran III and Daniel Chung prosecuted the case.
Houston man convicted in $6M bribery schemeRead the Press Release
HOUSTON – A federal jury has returned a guilty verdict against a 54-year-old man for one count of conspiracy to pay and receive health care kickbacks and two counts of payment of kickbacks to marketers, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for an hour following a three-day trial before finding Ifeanyi Ozoh guilty on all counts as charged.
Ozoh worked at a local dental clinic known as Floss Family Dentalcare Center from January 2020 to February 2021.
At trial, the jury heard how Ozoh paid marketers $20 to $100 for each Medicaid-insured child referred to Floss. The marketers testified that Ozoh secretly paid them in cash and out of sight of other witnesses, sometimes putting their illegal kickback payments on top of a vending machine down the hall from the clinic.
One clinic manager testified that she repeatedly warned Ozoh that paying marketers was illegal.
The jury also heard that Ozoh paid out over $163,000 in bribes to marketers and received bonuses for reaching a quota of patients.
From 2020 to 2021, Floss billed Medicaid over $6 million. Floss received over $4 million on those claims, most of which were predicated on a kickback paid to marketers and for dental services that were not provided.
During the trial, a representative testified that Medicaid prohibits the payment of kickbacks for referrals of medical services.
The defense attempted to convince the jury that Ozoh was only a “handyman” and was not aware that his actions were illegal. The jury ultimately did not believe those claims and found him guilty as charged.
U.S. District Chief Judge Randy Crane presided over the trial and set sentencing for May 21. At that time, Ozoh faces up to 25 years in federal prison as well as a possible $250,000 maximum fine.
FBI, Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson and Assistant U.S. Attorney Lauren Valenti are prosecuting the case.
Mexican man receives life in prison for holding hostages at ransomRead the Press Release
LAREDO, Texas – A 27-year-old Mexican national has been sentenced for holding multiple men against their will and demanding ransom, announced U.S. Attorney Alamdar S. Hamdani.
Edgardo Hernandez-Zamora pleaded guilty June 8, 2023, to hostage taking.
U.S. District Judge Marina Garcia Marmolejo has now ordered Hernandez-Zamora to serve the rest of his life in federal prison.
Co-conspirators Adrian Ramirez, 20, and Adrian Ramirez-Vasquez, 39, both from Mexico, also pleaded guilty to their roles and previously received 48 and 60 months in prison, respectively. Not U.S. citizens, both men are expected to face removal proceedings following their terms of imprisonment.
In February 2023, law enforcement arrived at a residence in Laredo after learning of a potential kidnapping. During their investigation, authorities heard loud banging coming from a window within the home and observed men crying and screaming in Spanish “they were kidnapping us.”
Authorities determined the men were being held against their will while Hernandez-Zamora communicated with their family members to demand a ransom. Hernandez-Zamora threatened to tie the victims up and cause them physical harm and that they would not see their families again if they did not comply.
One of the family members paid $3,500 as a partial payment of the ransom demand for their release.
Ramirez and Ramirez-Vasquez were both found to have conspired with Hernandez-Zamora in operating the stash house.
Hernandez-Zamora has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Border Patrol conducted the investigation with assistance from the Webb County Constable’s Office. Assistant U.S. Attorney Brandon Scott Bowling prosecuted the case.
Human smuggler convicted for attempting to transport aliens in tractor bedRead the Press Release
CORPUS CHRISTI, Texas – A federal jury has returned a guilty verdict against a 63-year-old Laredo man for unlawfully transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for less than two hours before finding Zenen Torres-Perdomo guilty following a day and a half trial.
On Aug. 1, 2023, Torres-Perdomo drove a tractor-trailer to the Sarita Border Patrol checkpoint. At initial inspection, a K-9 alerted authorities to the sleeper area of the tractor. Law enforcement subsequently discovered eight illegal aliens huddled together in the bed compartment of the tractor.
At the trial, Torres-Perdomo testified and argued he had no knowledge of the illegal alien’s presence in his vehicle. The jury ultimately did not believe those claims and found him guilty as charged.
U.S. District Judge David S. Morales presided over the trial and set sentencing at a later date. At that time, Torres-Perdomo faces up to five years in federal prison and a possible $250,000 maximum fine.
Torres-Perdomo was permitted to remain on bond pending sentencing.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys John Lamont and Young Min Burkett prosecuted the case.
Former enlistee indicted for theft from U.S. ArmyRead the Press Release
HOUSTON – A 26-year-old Houston man has been charged with selling stolen government property, announced U.S. Attorney Alamdar S. Hamdani.
Tamoshion Rucker is a former U.S. Army enlistee who allegedly stole and attempted to sell Image Intensifier Tubes (IITs) for personal gain, according to the indictment.
The charges allege the investigation began in December 2022 when authorities attempted to retrieve stolen ITTs that were posted for sale on eBay.
These IITs were allegedly manufactured to fulfill government contracts which are not available or authorized for sale to the public.
As stated in the indictment, to safeguard this technology and equipment, IITs require demilitarization at the end-of-life cycle use. The instructions allegedly involve striking them with a ball peen hammer, ensuring destruction and for the fragments to be disposed of in accordance with hazardous waste guidelines.
IITs cannot be resold or otherwise transferred to anyone after they have been used, according to the charges.
He was permitted release upon posting bond pending further criminal proceedings.
If convicted, Rucker faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The FBI and Army Criminal Investigative Division conducted the investigation with assistance from Texas Department of Public Safety. Assistant U.S. Attorney Carolyn Ferko 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.
Six sentenced for roles in $20M COVID-19 relief fraud ringRead the Press Release
HOUSTON - Six Houston-area men have been sentenced for their roles in a conspiracy to fraudulently obtain more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Hamza Abbas, 31, Ammas Uddin, 31, and Arham Uddin, 27, all of Richmond, were sentenced to 44, 18 and 18 months in prison, respectively, while Syed Ali, 55, Sugar Land, received a 24-month-term. Two others - Muhammad Anis, 55, and Jesus Acosta Perez, 33, both of Houston, were sentenced to respective terms of 21 months and 12 months and a day. All six had previously pleaded guilty and must also pay varying amounts in restitution.
According to court documents, the men conspired together and with others to fraudulently obtain PPP loans by, among other means, supplying information about their businesses to be used to submit false and fraudulent PPP loan applications. Specifically, the PPP loan applications falsified the numbers of employees and the average monthly payroll expenses of the applicant businesses. The loan applications included fraudulent bank records and fake federal tax forms in support of the PPP loan applications.
Abbas also recruited others into the conspiracy and created fraudulent bank records that were used in support of the loan applications in exchange for kickbacks.
They laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. These fake paychecks were cashed at certain cash checking businesses, including one another co-conspirator owned.
In January, three other individuals who also previously pleaded guilty were sentenced for their roles in the loan fraud scheme. Raheel Malik, 43, Sugar Land, and Nishant Patel, 41, Houston, received respective sentences of 18 and 24 months, while Harjeet Sing, 50, Katy, must serve five years of probation.
In October 2023, seven others were sentenced for their roles in the loan fraud conspiracy, including the ringleader, Amir Aqeel, 55, Houston, who was sentenced to 15 years in prison.
SBA - Office of Inspector General (OIG), Federal Housing Finance Agency – OIG (Central Region), Homeland Security Investigations, Federal Deposit Insurance Corporation – OIG (Dallas Region) and Treasury Inspector General for Tax Administration (Gulf States Field Division) conducted the investigation.
Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the case along with Trial Attorneys Kate McCarthy, Louis Manzo, Spencer Ryan, Della Sentilles and Randall Warden of the Criminal Division’s Fraud Section.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.
Six Men Sentenced for Roles in $20M COVID-19 Relief Fraud RingRead the Press Release
Six Texas men were sentenced today for their roles in a conspiracy to fraudulently obtain more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Hamza Abbas, 31, Ammas Uddin, 31, and Arham Uddin, 27, all of Richmond, were sentenced to three years and eight months, one year and six months, and one year and six months in prison, respectively; Syed Ali, 55, of Sugar Land, was sentenced to two years in prison; and Muhammad Anis, 55, and Jesus Acosta Perez, 33, both of Houston, were sentenced to one year and nine months and one year and one day in prison, respectively. All six defendants previously pleaded guilty.
According to court documents, the defendants conspired together and with others to fraudulently obtain PPP loans by, among other means, supplying information about their businesses to be used to submit false and fraudulent PPP loan applications. Specifically, the PPP loan applications falsified the numbers of employees and the average monthly payroll expenses of the applicant businesses. The loan applications also included fraudulent bank records and fake federal tax forms in support of the PPP loan applications. Abbas also recruited others into the conspiracy and created fraudulent bank records that were used in support of the loan applications in exchange for kickbacks.
The defendants also laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. These fake paychecks were cashed at certain cash checking businesses, including one owned by another co-conspirator.
In January, three other individuals who previously pleaded guilty were sentenced for their roles in the loan fraud scheme. Raheel Malik, 43, of Sugar Land, was sentenced to one year and six months in prison; Nishant Patel, 41, of Houston, was sentenced to two years in prison; and Harjeet Sing, 50, of Katy, was sentenced to five years of probation.
In October 2023, seven other individuals were sentenced for their roles in the loan fraud conspiracy, including the ringleader, Amir Aqeel, 55, of Houston, who was sentenced to 15 years in prison.
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 Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region, Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region, Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) Houston, Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region, and Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) Gulf States Field Division made the announcement.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the cases.
Trial Attorneys Kate McCarthy, Louis Manzo, Spencer Ryan, Della Sentilles, and Randall Warden of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson for the Southern District of Texas are prosecuting the cases.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
Local woman imprisoned for threatening to harm federal judgeRead the Press Release
HOUSTON – A 50-year-old Houston resident has been sentenced for using interstate communications to threat, kidnap or injure, announced U.S. Attorney Alamdar S. Hamdani.
Tiffani Shea Gish aka Evelyn Salt pleaded guilty Nov. 9, 2023.
U.S. District Judge David Hittner has now ordered Gish to serve 37 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence about mental health problems and that Gish had previously left threatening messages for various government agencies. In handing down the sentence, Judge Hittner noted that he was concerned for the safety of the public and protecting the judiciary.
“Upholding the rule of law is one of the main priorities of the Department of Justice, and that means protecting public servants from violence,” said Hamdani. “Holding Tiffani Gish accountable for her threats to assassinate a federal judge sends a strong message that we have no tolerance for those – who often hide behind a far-off keyboard or phone line – seeking to undermine our democratic institutions by threatening the safety of the people who help those same institutions thrive.”
On Sept. 1, 2022, Gish left three threatening voicemails on the chamber’s telephone of a U.S. district judge from Florida. In the messages, Gish claimed to be a member of several military combat units, trained and familiar with weapons of war.
In the first message, she said the victim was marked for assassination and would get a bullet in the head. Gish then reiterated the same threat in two subsequent messages and used expletives when adding that she had ordered snipers and a bomb to the victim’s house and would to throw a bullet to the victim’s head.
Gish will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Steven Schammel prosecuted the case.
Former Navy corpsman indicted for failure to register as sex offenderRead the Press Release
LAREDO, Texas – A 34-year-old South Carolina man has been taken into federal custody for failing to register as a sex offender after traveling interstate to Texas, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Robert Counterman in Laredo. He is set to make his initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 9:30 a.m.
In 2018, Counterman, corpsman in the U.S Navy, was convicted for attempting lewd acts with a child under the age of 16 and was ordered to register as a sex offender, according to the charges. He was allegedly discharged from military service following his conviction.
According to the indictment returned Feb. 6, Counterman failed to register or update his registration as a sex offender upon arriving in Texas in December 2022.
If convicted, Counterman faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The U.S. Marshals Service (USMS) led the investigation with assistance from the Gulf Coast Violent Offenders and Fugitive Task Force. Special Assistant U.S. Attorney Terence A. Check Jr. is prosecuting the case, which is brought as part of Project Safe Childhood.
Project Safe Childhood is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The Gulf Coast Violent Offenders and Fugitive Task Force is a team comprised of law enforcement officers from the USMS, Laredo Police Department, Webb County Sheriff’s Department, Webb/Zapata County District Attorney’s Office, Texas Department of Public Safety and Border Patrol. The task force’s objective is to seek out and arrest violent criminals, gang members and sex offenders. These task forces combine the efforts of federal, state and local law enforcement agencies to locate and arrest the most dangerous fugitives. Anonymous tips can be made by texting 411TIPS (847411) keyword GULFCOAST.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Registered sex offender gets 100 years after raping two young childrenRead the Press Release
HOUSTON – A 32-year-old Houston resident has been ordered to federal prison for sexual exploitation of children, announced U.S. Attorney Alamdar S. Hamdani.
George Michael Granados pleaded guilty July 31, 2023.
U.S. District Court Judge Kenneth M. Hoyt has now ordered Granados to serve a 600-month sentence for each of his two counts of conviction. They will run consecutively for a total 1200 months in federal prison. At the hearing, the court also heard additional information including a victim impact statement from the father of one of the victims who expressed his horror at this crime, the violation of trust and the pain this caused his family. In handing down the prison terms, the court noted that one day these two little girls will grow up and should not have to bear the fear that Granados may ever be released from prison.
“One hundred years is justice. Granados stole the innocence of two children, young girls he knew and were often entrusted to his care,” said Hamdani. “He betrayed them in the most horrific and despicable manner, all for his own deviant sexual desire. This massive sentence makes it clear – if you try to destroy our precious kids through such victimization and abuse, we will destroy your freedom by showing you only prison walls for decades to come.”
“What Granados did to those two little girls is abominable and unforgiveable,” said Acting Special Agent in Charge Douglas Williams of the FBI Houston field office. “As a convicted rapist, Granados should have never had access to those children. Today’s sentence is partial justice for his victims whose innocence he stole and trust he violated. It’s precisely the young, innocent and vulnerable victims for whom our agents will continue to investigate some of the most difficult and emotionally taxing crimes.”
The investigation revealed Granados raped these children and recorded them on video. After filming, Granados uploaded the files to his Google drive.
In February 2022, law enforcement conducted search warrants for his residence, electronic devices and Google drive account. Forensic examination revealed three separate videos and nine image files, each showing his vaginal penetration of the girls. His face, heavily tattooed neck, arms and torso led to his positive identification. Granados was also found to be in possession of other image and video files depicting the sexual abuse of minors.
At the time of these events, Granados was a registered sex offender with a prior conviction for sexual assault.
Granados 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 along with Liberty County Sheriff's Office and the Texas Department of Public Safety - Texas Rangers.
Assistant U.S. Attorneys Sharad S. Khandewhal and Anna Swanson prosecuted this 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.
Fort Bend man sentenced for receiving military training from a designated foreign terrorist organizationRead the Press Release
HOUSTON - A 34-year-old resident of Sugar Land has been ordered to federal prison for his conviction related to the Islamic State of Iraq and al-Sham (ISIS), announced U.S. Attorney Alamdar S. Hamdani.
Warren Christopher Clark pleaded guilty Oct. 10, 2023.
U.S. District Judge George C. Hanks Jr. has now ordered Clark to serve 120 months in federal prison to be immediately followed by a lifetime of supervised release. In handing down the sentence, the court imposed a terrorism enhancement, noting how Clark’s criminal and irresponsible behavior betrayed the values of this country and that he hoped Clark served every second of his sentence.
“In the interests of national security, our laws prohibit Americans from receiving military training from designated foreign terrorist organizations. Warren Clark ran afoul of those laws when he illegally crossed the border into Syria and underwent military training from ISIS, a brutal terrorist organization,” said Hamdani. “Thanks to international partnerships, Clark was brought back to the United States to face the consequences for his crimes in a Southern District of Texas courtroom.”
“By seeking and receiving military training from a foreign terrorist organization, Clark, a former teacher, betrayed his nation and allied himself with one of the most violent U.S. adversaries,” said Special Agent in Charge Douglas Williams of the FBI Houston field office. “Protecting the American people from terrorism is the FBI’s number one priority. As the lead U.S. agency for combating international and domestic terrorism, the FBI continues to work with our partners and use all necessary resources to get ahead of the threats and protect our communities, especially as the threat is constantly evolving.”
As part of his plea, Clark admitted knowing ISIS was a foreign terrorist organization. Regardless, he traveled overseas and receiving military training from them.
Clark admitted he illegally traveled from Turkey into Syria where he took mandatory religious and military training. In correspondence to his family, Clark indicated he was living happily abroad and would not return to the United States unless “the Islamic State conquers the US,” noting he thought he would be imprisoned here if he did come back.
He later called himself a citizen of the Islamic State and renounced his U.S. citizenship.
Clark 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 FBI Joint Terrorism Task Force and police departments in Houston and Sugar Land conducted the investigation. Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel prosecuted the case along with Trial Attorney Michael J. Dittoe of the Department of Justice Counter Terrorism Section.
Former jailer charged with sexually assaulting womenRead the Press Release
LAREDO, Texas - A 28-year-old Laredo man is now in custody for allegedly sexually assaulting and violating the civil rights of two women, announced U.S. Attorney Alamdar S. Hamdani.
Hector Humberto Rodriguez Jr. is expected to make an initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 1:30 p.m.
A federal grand jury returned the sealed five-count indictment Feb. 6, which was unsealed upon his arrest.
Rodriguez was a correctional officer with the Webb County Sheriff’s Department.
On two separate occasions, he allegedly deprived two women of their civil rights. While working in his law enforcement capacity, he forcibly sexually assaulted both women while they were housed as inmates at the Webb County Jail, according to the indictment.
If convicted, he faces up to life in prison as well as potential fines of $250,000 for each of the five counts in the indictment.
The FBI and Department of Justice - Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Brandon Scott Bowling and Leslie Ann Cortez 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.
Distributing fentanyl through the mail sends South Texan to prisonRead the Press Release
BROWNSVILLE, Texas – A 37-year-old Brownsville resident has been sentenced for possession with intent to distribute 1,741 grams of fentanyl, announced U.S. Attorney Alamdar Hamdani.
Heriverto Ramirez pleaded guilty July 20, 2023.
U.S. District Judge Rolando Olvera has now ordered Ramirez to serve 70 months in federal prison to be immediately followed by two years of supervised release.
“This case is a perfect example of how fentanyl, a potent and deadly opioid, is overtaking every aspect of the illicit drug trade,” said Hamdani. “Ramirez was caught mailing half a kilogram of fentanyl through USPS, creating a potentially deadly hazard for anyone handling the package. The investigation revealed that this dangerous distribution scheme had been ongoing for almost a year.”
Ramirez packaged 494 grams of fentanyl for distribution through the U.S. Postal Service, concealing the dangerous narcotic in the shell of a tankless hot water heater.
Law enforcement executed a search warrant at the residence of Ramirez and discovered an additional 1,247 grams of fentanyl and 8.48 kilograms of cocaine.
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 conducted the investigation with the assistance of Texas Department of Public Safety. Assistant U.S. Attorney Jose A. Esquivel Jr. prosecuted the case.
Brothers get significant sentences for manufacturing deadly fentanyl-laced pills disguised as pain medsRead the Press Release
CORPUS CHRISTI, Texas – Two Corpus Christi brothers have been ordered to federal prison for manufacturing and distributing tens of thousands of fentanyl-laced pills disguised as legitimate pharmaceutical-grade pain medications, announced U.S. Attorney Alamdar S. Hamdani.
Chad Williams Wesevich, 40, and his brother Jamie Wesevich, 41, pleaded guilty in August 2023 to conspiracy to manufacture and possess with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime and conspiracy to commit money laundering.
U.S. District Judge David S. Morales has now ordered both men to serve a total of 35 years in prison - 360 and 240 months concurrently on the drug and money laundering charges, respectively as well as a consecutive 60 months on the firearm charge. In imposing the sentence, the court noted the brothers possessed a network of friends and family who had said supportive and loving things in letters requesting leniency, but that those letters must be tempered against the facts that people had overdosed on these pills. “We can’t get those people back,” said Judge Morales.
“Synthetic opioids, like fentanyl, account for almost 70% of drug overdose deaths in the United States, and Corpus Christi is no stranger to this new epidemic,” said Hamdani. “The dismantling of this deadly drug trafficking organization, including the seizure of two industrial fentanyl pill presses, has made Corpus Christi a better and safer place to live.”
“There were several overdose/fentanyl poisoning deaths tied to the Wesevich Drug Trafficking Organization,” said Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux of the Houston Division. “The exemplary work of DEA agents alongside our federal and state partners sought justice for the families of victims who lost their lives due to the poison spread by Chad Wesevich and his co-conspirators.”
Between 2017 and 2021, Chad and Jamie Wesevich acquired equipment and materials from foreign sources, which were used to manufacture pills disguised as legitimate medications such as hydrocodone. The equipment included two industrial pill presses capable of producing 9,000 pills per hour.
The fraudulent hydrocodone was distributed through a network of trusted associates throughout Corpus Christi and the surrounding areas. The pills the Wesevich brothers manufactured were linked to several overdoses, both fatal and non-fatal.
As a result of this investigation, authorities seized tens of thousands of
counterfeit hydrocodone pills containing over 1,500 grams of fentanyl as well as pill presses, pill dies, vacuums, separators and other tools used in the illicit production of fentanyl-laced pills. In addition, law enforcement seized seven vehicles, five houses, seven guns and $350,000 in cryptocurrency and bulk cash.
The brothers have been in custody since their arrests in May 2022 and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The DEA led the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation along with IRS Criminal Investigation, Homeland Security Investigations, Corpus Christi Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance of the Texas Department of Public Safety. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach leveraging the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorneys Brittany Jensen and Tyler Foster prosecuted the case.
Alien smuggler heads to prison after hiding people in tractor bed and cabinetsRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old man has been convicted of unlawfully transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for 15 minutes following a one-day trial before convicting Deibi Ramos on Nov. 14, 2023.
U.S. District Judge David S. Morales has now ordered Ramos to serve 18 months in federal prison to be immediately followed by two years of supervised release. In handing down the sentence, the court noted the number of aliens and manner of transportation was concerning.
On April 19, 2023, Ramos drove a tractor-trailer to the Border Patrol checkpoint near Sarita. The jury heard that a K-9 soon alerted to the sleeper area of the vehicle. Upon further inspection, law enforcement discovered 10 illegal aliens concealed beneath the bed compartment and in the cabinets of the tractor.
The jury saw evidence of phone calls on Ramos’ phone between him and one of the illegal aliens as well as a voice message from a smuggling coordinator. The message included pickup and drop-off instructions.
At the trial, the defense attempted to convince the jury that Ramos’ knowledge was not proven beyond a reasonable doubt. The jury did not believe those claims and found him guilty as charged.
Ramos was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Tyler Foster, Liesel Roscher and Yasmine Tucker prosecuted the case.
Two-time felon convicted of carrying a firearm contrary to federal lawRead the Press Release
LAREDO, Texas – A 35-year-old Laredo man has admitted to illegally possessing a loaded 9-millimeter handgun, announced U.S. Attorney Alamdar S. Hamdani.
On Dec. 8, 2023, Bruce James Lyles arrived at the Border Patrol (BP) checkpoint on IH-35 just north of Laredo. At that time, a K-9 alerted to his van. Upon further inspection, authorities discovered a 9-millimeter pistol with a magazine loaded with 12 rounds of ammunition in Lyles’ backpack.
Lyles admitted he knew he was prohibited from possessing firearms, that the weapon had been purchased at a pawn shop in Anchorage, Alaska, and had placed the pistol in his backpack.
Lyles had been convicted for two felony convictions in Minnesota – for robbery and for second-degree assault – which resulted in prison sentences of 23 and 30 months, respectively. As a convicted felon, he is prohibited from possessing a firearm or ammunition per federal law.
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that hearing, Lyles faces up to 15 years in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending sentencing which will be set at a later date.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance BP.
Assistant U.S. Attorney Homero Ramirez 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.
Laredo felon admits to possessing cocaine and handguns inside homeRead the Press Release
LAREDO, Texas – A 47-year-old man has pleaded guilty to possessing over 800 grams of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
The investigation began in September 2022, when law enforcement learned Homero Flores was selling cocaine in the Laredo area. They later located several clear plastic baggies in in his trash that were consistent with the size and shape of how narcotics would be stored for street-level sale. Authorities also found multiple handwritten notes on paper towels that contained weights, prices and terminology - all consistent with the sale of street-level quantities of cocaine.
A search of his home resulted in the discovery of a plastic bag containing what was determined to be 850 grams of cocaine as well as two firearms.
Flores has a 2012 conviction for conspiracy to possess with intent to distribute 500 grams or more of cocaine. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, Flores faces up to 40 years in federal prison and a possible $5 million maximum fine.
Flores will remain in custody pending that hearing.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department’s Narcotics Division conducted the investigation with assistance from Homeland Security Investigations and Border Patrol. Assistant U.S. Attorney Brian Bajew is 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.
Houstonians charged in series of early morning diner robberiesRead the Press Release
HOUSTON – Three men have been indicted on multiple crimes in relation to violent armed robberies of local restaurant chains, announced U.S. Attorney Alamdar S. Hamdani.
Christopher Djuan Roberts, 27, and Xavier Edward Jones, 28, both of Houston, are set to appear for their detention hearings at 10 a.m. before make their initial appearances before U.S. Magistrate Judge Peter Bray. Wesley James Thomas, 29, currently in custody in another jurisdiction, will make his initial appearance in Houston in the near future.
The indictment, returned Jan. 24, alleges interference with commerce by threat or force, brandishing of a firearm in relation to a crime of violence and felon in possession of a firearm.
In the early morning hours of Oct. 15, 2023, the three men allegedly robbed a Waffle House located at 635 Rankin Road. Immediately after the robbery, the trio proceeded to rob a Denny’s located at 11320 North Freeway, according to the charges. During both robberies, the men allegedly brandished handguns while taking money from Waffle House employees and both employees and customers of Denny’s.
Roberts and Thomas are both convicted felons and are prohibited from possessing a firearm per federal law.
If convicted of brandishing of a firearm in relation to a crime of violence, the men face up to life imprisonment while the interference with commerce by threat or force carries a possible sentence of up to 20 years. Additionally, Roberts and Thomas face up to 15 years in prison if convicted for being felons in possession of a firearm. All charges also carry a possible penalty of up to $250,000.
The Bureau of Alcohol, Tobacco and Firearms (ATF) through the collaborative efforts of the ATF Strike Force conducted the investigation along with the Harris County Sheriff’s Office and Houston Police Department. Assistant U.S. Attorney Brian J. Hrach 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.
Final man sent to prison in cocaine car battery conspiracyRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Mexican national has been sentenced for conspiring to traffic cocaine across the border, announced U.S. Attorney Alamdar S. Hamdani.
Juan Andres Rodriguez-Murillo pleaded guilty Nov. 1, 2023, to conspiring with others to smuggle narcotics into the United States by concealing the drugs inside car batteries.
U.S. District Judge Nelva Gonzales Ramos has now ordered Rodriguez-Murillo to serve 60 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the consequences for individuals who choose to get involved in drug smuggling.
Mikeal Jovany Phillips, 36, Huffman, and Christopher Sheffield, 39, Crosby, were previously sentenced to 40 and 48 months in federal prison, respectively, both to be immediately followed by four years of supervised release.
On Jan. 6, 2023, Sheffield drove a gold SUV to the Border Patrol (BP) checkpoint near Sarita. Upon inspection, authorities discovered approximately 2.8 kilograms of cocaine hidden inside the battery compartment. The battery shell contained a smaller battery to power the vehicle and three bundles of cocaine.
The investigation revealed numerous text and Facebook messages between Sheffield and Phillips discussing the trip.
Subsequently, authorities learned Phillips had coordinated the trip and arranged for Sheffield to travel from the Houston area to Brownsville to retrieve the cocaine. While in Brownsville, Sheffield met Rodriguez-Murillo who then provided the cocaine-filled car battery and installed it in the vehicle.
Rodriguez-Murillo 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 and BP conducted the investigation.
Assistant U.S. Attorney Ashley Martin prosecuted the case.
Corpus Christi man sent to prison for conspiring to traffic machine guns across state linesRead the Press Release
CORPUS CHRISTI, Texas – A 23-year-old Corpus Christi man has been sentenced for conspiracy to traffic firearms, specifically machine gun conversion devices (MCDs), in interstate commerce, announced U.S. Attorney Alamdar S. Hamdani.
Rene Saldana pleaded guilty Sept. 14, 2023.
U.S. District Judge Nelva Gonzales Ramos has now handed Saldana a 36-month term of imprisonment to be immediately followed by two years of supervised release.
“MCDs, commonly known as “Glock switches,” present a unique and insidious threat to our communities – criminals can conceal something as small as a paperclip, install it in a legal gun, quickly converting the legal handgun into a machinegun, capable of firing hundreds of rounds of ammunition per minute,” said Hamdani. “This case involved an individual making MCDs in his home and then selling them to the highest bidder, without regard to where or how those MCDs would be used. From 2017 to 2021, the number of MCDs seized by law enforcement rose 570%. And with MCDs often ending up in the hands of dangerous criminals, gang members and cartel assassins, the Southern District’s prosecutors are doing everything they can to keep these types of weapons off the streets.”
“The illegal manufacturing of MCDs present a great danger to our communities,” said Acting Special Agent in Charge Francisco Ortega of the Houston Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Holding illegal firearm possessors accountable through federal prosecution is one of our highest priorities and ATF will continue to pursue those who endanger the public with the illegal possession or use of conversion devices.”
In May and June 2023, Saldana was discussing selling firearms and MCDs – devices that can be attached to existing legal firearms to turn them into machine guns. The attachments alter the firing mechanism of the guns so they can fire multiple shots automatically. These MCDs are considered machine guns under the law and are illegal to possess.
Saldana agreed to make and sell six MCDs for $1000 total. Saldana tested the MCDs to ensure they worked as intended and made the firearm function as an automatic weapon. He then arranged for a co-defendant to deliver the MCDs to a person he believed was smuggling them to another state. Saldana confirmed the sale via Snapchat and made plans for another, larger sale in the future.
Authorities recovered all six MCDs Saldana sold. At the time of his arrest, they also recovered a 3-D printer he was using to make the devices, as well as thirteen more MCDs in various stages of completion.
Saldana was permitted to remain on bond pending sentencing.
ATF conducted the investigation. Assistant U.S. Attorneys Ashley Martin and John Marck prosecuted the case.
“Wholesaler” of fake tags sentenced for selling hundreds of thousands of illegal Texas paper tagsRead the Press Release
HOUSTON – A 43-year-old woman has been sentenced for providing false information in order to access the state database to print illegal tags and then sell them to other sellers on the internet, announced U.S. Attorney Alamdar S. Hamdani.
Leidy Hernandez Lopez pleaded guilty May 10, 2023, to conspiring with others residing in the Southern District of Texas and elsewhere, to buy and sell thousands of fraudulent Texas-issued temporary buyer tags for cars in and outside of Texas without a legitimate vehicle purchase.
U.S. District Judge George C. Hanks Jr. has now ordered Lopez to serve 30 months in federal prison to be immediately followed by three years of supervised release. The court also ordered Hernandez Lopez to pay restitution to the Texas Department of Motor Vehicles in the amount of $316,820.
At the hearing, the court heard how she and others engaged in a widespread fraud to use fictitious car dealerships to generate and sell Texas temporary buyer tags without actually selling cars. In handing down the sentence, the court noted that while Lopez may not have known what the consequences of her actions were, she nonetheless placed peoples’ lives at risk by providing fake tags that were used in crimes such as drive by shootings.
“The harm in this case was more than monetary,” said Hamdani. “In selling fake vehicle tags to other sellers, Lopez provided criminals with the means to create ghost cars that were invisible to law enforcement which were used to commit crimes that posed a hazard to the public ranging from driving without insurance to committing robberies and drive-by shootings.”
Lopez and co-conspirators used the internet to buy and sell the fraudulent state-issued buyer tags and exchange proceeds from the illegal tag sales.
At the time of her plea, Lopez acknowledged she and her co-conspirators communicated via email where she would deliver fraudulent buyer tags to sellers who then re-sold them to purchasers all over the United States, including New York, Florida and Washington, D.C.
She also admitted she received fraud proceeds via electronic payment services such as Cash App and Zelle.
Lopez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Emmanuel Padilla Reyes aka Christian Hernandez Bonilla or Noel Rivera is still a fugitive in this case. The FBI is offering a $5,000 reward to anyone providing information that directly leads to his arrest. Those with information about the fugitive’s location should call 1-800-CALL-FBI or email www.TIPS.FBI.GOV
The FBI conducted the investigation with assistance of Travis County Precinct 3 Constable’s Office, Houston Police Department, Texas Department of Public Safety, Texas Department of Motor Vehicles, Harris County Sheriff’s Office, New York State Police and New York City Police Department. Assistant U.S. Attorneys Belinda Beek and Adam Goldman prosecuted the case.
Texas man sentenced for tax evasionRead the Press Release
HOUSTON – A Texas man has been ordered to federal prison for evading his taxes by not reporting income he earned while working overseas.
Peter Joseph Tignini pleaded guilty Aug. 21, 2023.
U.S. District Judge George C. Hanks has now ordered him to serve 41 months in prison and to pay a $150,000 fine as well as $1,169,348.60 in restitution to the United States.
According to court records, from 2013 to 2018, Tignini worked in the United Arab Emirates and Qatar, earning over $4,750,000 in income. However, for tax years 2013 through 2017, Tignini filed false returns that claimed his income was only approximately $100,000 each year. The amount Tignini reported each year was near or below the amount that U.S. citizens who live and work abroad for most of a year can exclude from their taxable income on their U.S. tax return. Tignini did not file a return for 2018. As a result, Tignini caused a tax loss to the IRS of $1,169,348.
Following an interview with federal law enforcement, Tignini altered his employment contract and payroll documents to make it appear his former employer, not Tignini himself, was responsible for failing to report the income and pay the tax. Tignini then caused his attorneys to provide the false documents to the Department of Justice’s Tax Division and the IRS. After investigators asked a witness about the online program Tignini used to create the phony documents, Tignini attempted to delete the documents from his account.
IRS Criminal Investigation conducted the investigation.
Assistant U.S. Attorney Adam Goldman prosecuted the case along with Senior Litigation Counsel Sean Beaty and Trial Attorney Brian Flanagan of the Tax Division.
Pornographic chat room discussions lead to convictionRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old Corpus Christi resident has pleaded guilty to distributing child pornography, announced U.S. Attorney Alamdar S. Hamdani.
The investigation into Jonathan Follis began when authorities discovered he was participating in chat rooms involving discussions of child pornography. Follis conducted the majority of these conversations using a cellular phone kept in his office at work.
Law enforcement later conducted a search at that office where they discovered a phone hidden under his keyboard. Follis admitted to using the phone to distribute child pornography.
Law enforcement conducted a forensic analysis of the phone. It confirmed Follis had been engaging in chat rooms discussing child pornography utilizing the username “frickenwierdo.” In addition to those rooms, Follis was participated in distributing child pornography in private chats.
The investigation revealed Follis distributed a video of child pornography as recently as April 5, 2023, approximately one month before law enforcement executed the search warrant leading to his arrest.
U.S. District Judge David Morales will impose sentencing May 1. At that time, Follis faces up to 20 years in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with assistance of the Corpus Christi Police Department’s Internet Crimes Against Children task force.
Assistant U.S. Attorneys Patrick Overman and John Marck 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.
False Claims Act complaint filed against former president and co-owner of mobile cardiac PET scan providerRead the Press Release
HOUSTON – The United States has filed a complaint under the False Claims Act against Rick Nassenstein, a resident of Florida and formerly the president, chief financial officer and co-owner of Illinois-based Cardiac Imaging Inc. (CII), a provider of mobile cardiac positron emission tomography (PET) scans.
The complaint alleges Nassenstein knowingly played a central role in a scheme whereby CII paid doctors exorbitant, above-fair market value fees who referred patients to CII for cardiac PET scans in violation of the Physician Self-Referral Law, also known as the Stark Law. It prohibits health care providers from billing Medicare for certain designated health services referred by a physician with whom the provider has a financial relationship, including a compensation arrangement, that does not meet any statutory or regulatory exception. Congress enacted the Stark Law to protect Medicare patients from financial arrangements that can adversely impact physicians’ decision making and lead to unnecessary services. Claims knowingly submitted to Medicare in violation of the Stark Law also violate the federal False Claims Act (FCA).
“Improper compensation arrangements unnecessarily drive-up healthcare costs and cloud a physician’s medical judgment,” said U.S. Attorney Alamdar S. Hamdani. “This complaint alleges that in an effort to increase profits, Nassenstein caused CII to enter into improper compensation arrangements with cardiologists who referred patients for cardiac PET scans. We are committed to enforcing the Stark Law and protecting Medicare from these types of improper financial relationships.”
“Financial relationships between healthcareproviders and referring physicians can undermine the objectivity of medical treatment decisions and increase the cost of care,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will enforce provisions designed to prevent prohibited financial conflicts to ensure that taxpayers and patients can have confidence that decisions about patient care are driven by the medical needs of patients rather than the financial interests of physicians or providers.”
Cardiac PET scans are nuclear medicine tests that doctors use to help assess heart function and diagnose cardiac disease. The United States’ complaint alleges CII provided cardiac PET scans on a mobile basis and paid the referring physicians, usually cardiologists, to provide the physician supervision required under Medicare rules. The United States alleges that from at least 2017 through June 2023, Nassenstein caused CII to enter into compensation arrangements with referring cardiologists, under which the cardiologists were paid as if they were fully occupied supervising CII’s scans, even though the cardiologists were actually providing care to other patients in their offices or were not even on site. The complaint alleges CII’s fees also purportedly compensated the cardiologists for additional services beyond supervision that were not actually provided.
The lawsuit was originally filed under the qui tam or whistleblower provisions of the FCA by Lynda Pinto, a former billing manager at CII. Under the FCA, private parties, known as relators, can file an action on behalf of the United States and receive a portion of the recovery. The FCA permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the FCA, the United States may recover three times the amount of its losses plus applicable penalties.
The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas (SDTX) are handling the matter with assistance from the Department of Health and Human Services (HHS) Office of Inspector General. The case is captioned U.S. ex rel. Pinto v. Nassenstein, No. 18-cv-2674 (S.D. Tex.). CII and its current owner, Sam Kancherlapalli, previously settled related claims arising from the conduct described above. See “Mobile Cardiac PET Scan Provider and Founder to Pay $85 Million to Resolve Allegedly Unlawful Payments to Referring Doctors.”
SDTX Assistant U.S. Attorney Melissa M. Green and Trial Attorneys Samuel Lehman and Jake M. Shields of the Justice Department's Civil Division are handling the matter.
The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted in this case are allegations only, and there has been no determination of liability.
False Claims Act Complaint Filed Against Former President and Co-Owner of Mobile Cardiac PET Scan ProviderRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Southern District of Texas under the False Claims Act (FCA) against Rick Nassenstein, a resident of Florida and formerly the president, chief financial officer, and co-owner of Illinois-based Cardiac Imaging Inc. (CII), a provider of mobile cardiac positron emission tomography (PET) scans.
The complaint alleges Nassenstein knowingly played a central role in a scheme whereby CII paid exorbitant, above-fair market value fees to doctors who referred patients to CII for cardiac PET scans in violation of the Physician Self-Referral Law, also known as the Stark Law. It prohibits health care providers from billing Medicare for certain designated health services referred by a physician with whom the provider has a financial relationship, including a compensation arrangement, that does not meet any statutory or regulatory exception. Congress enacted the Stark Law to protect Medicare patients from financial arrangements that can adversely impact physicians’ decision making and lead to unnecessary services. Claims knowingly submitted to Medicare in violation of the Stark Law also violate the federal FCA.
“Financial relationships between healthcare providers and referring physicians can undermine the objectivity of medical treatment decisions and increase the cost of care,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will enforce provisions designed to prevent prohibited financial conflicts to ensure that taxpayers and patients can have confidence that decisions about patient care are driven by the medical needs of patients rather than the financial interests of physicians or providers.”
“Improper compensation arrangements unnecessarily drive-up healthcare costs and cloud a physician’s medical judgment,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “This complaint alleges that in an effort to increase profits, Nassenstein caused CII to enter into improper compensation arrangements with cardiologists who referred patients for cardiac PET scans. We are committed to enforcing the Stark Law and protecting Medicare from these types of improper financial relationships.”
Cardiac PET scans are nuclear medicine tests that doctors use to help assess heart function and diagnose cardiac disease. The United States’ complaint alleges CII provided cardiac PET scans on a mobile basis and paid the referring physicians, usually cardiologists, to provide the physician supervision required under Medicare rules. The United States alleges that from at least 2017 through June 2023, Nassenstein caused CII to enter into compensation arrangements with referring cardiologists, under which the cardiologists were paid as if they were fully occupied supervising CII’s scans, even though the cardiologists were actually providing care to other patients in their offices or were not even on site. The complaint alleges CII’s fees also purportedly compensated the cardiologists for additional services beyond supervision that were not actually provided.
The lawsuit was originally filed under the qui tam or whistleblower provisions of the FCA by Lynda Pinto, a former billing manager at CII. Under the FCA, private parties, known as relators, can file an action on behalf of the United States and receive a portion of the recovery. The FCA permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the FCA, the United States may recover three times the amount of its losses plus applicable penalties.
The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas (SDTX) are handling the matter with assistance from the Department of Health and Human Services (HHS) Office of Inspector General. The case is captioned U.S. ex rel. Pinto v. Nassenstein, No. 18-cv-2674 (S.D. Tex.). CII and its current owner, Sam Kancherlapalli, previously settled related claims arising from the conduct described above.
Trial Attorneys Samuel R. Lehman and Jake M. Shields of the Justice Department's Civil Division and Assistant U.S. Attorney Melissa M. Green for the Southern District of Texas are handling the matter.
The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted in this case are allegations only, and there has been no determination of liability.
ComplaintNonimmigrant visa holder sentenced for violating US gun lawsRead the Press Release
HOUSTON – A 26-year-old citizen of Niger has been sent to federal prison on firearms charges related to his status in the United States, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately one hour following a one-day trial before returning guilty verdicts March 14, 2023, against Moctar Ahmadou Gouroudja Ahmadou.
U.S. District Judge Alfred H. Bennett has now ordered Ahmadou to serve 78 months in federal prison. He is also expected to lose his status in the country and face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence concerning his discussions with the individual associated with the attack on Naval Air Station Corpus Christi, about Ahmadou’s downloading of jihad videos including beheadings and that he discussed the possibility of traveling to Palestine to commit jihad. In handing down the sentence, the court noted Ahmadou had been invited to this country to study under a student visa and had violated that privilege.
“Moctar Ahmadou, like thousands every year, traveled to the United States under an F-1 visa in search of an American education,” said Hamdani. “But when he took that quest for knowledge to a gun range, picked up a gun, handled the ammo and fired it, he went from student to criminal. This sentence sends a strong message to those like Ahmadou--stay in the classroom and away from the gun range otherwise your American education will come not from a University but from the prison library.”
Even though Ahmadou was lawfully present in the United States on a nonimmigrant visa, he violated the terms of that status by illegally using a firearm and ammunition.
Ahmadou entered the United States March 24, 2016, from Niger. At the time, he had a nonimmigrant F1 visa, or student visa, to study at the North American University in Stafford. Under that status, he was not permitted to possess or use firearms or ammunition.
However, the jury heard that on or around May 17, 2021, Ahmadou participated in handling and firing a handgun at a Texas-based gun range. He purchased a course called “First Shot” which provided training on pistol shooting and range time. Immediately after completing the course, Ahmadou rented a Glock 45. He was seen at the firing line at the gun range holding a pistol and shooting down range towards a target.
On May 18, 2021, Ahmadou returned to the same gun range to participate in handling and firing a rifle. The course consisted of firearms safety, manipulation and shooting a rifle. He also possessed and shot a Smith & Wesson, model MP15, .223 caliber rifle and purchased and possessed four boxes of Fiocchi .223 caliber ammunition which he used with the rifle.
Ahmadou 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 FBI led the investigation with the assistance of Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of State - Diplomatic Security Service; Homeland Security Investigations; Customs and Border Protection; U.S. Customs and Immigration Service; and Texas Department of Fish and Wildlife conducted the investigation. Assistant U.S. Attorneys Steven Schammel and Richard Bennett prosecuted the case along with Trial Attorney Michael Dittoe of the Justice Department’s Counter Terrorism Section.
International fraudster convicted in multi-million dollar advance-fee schemeRead the Press Release
HOUSTON – A 57-year-old Nigerian national has pleaded guilty for his role in a fraud conspiracy perpetrated against victims in more than 20 countries, announced U.S. Attorney Alamdar S. Hamdani.
Uche Victor Diuno helped orchestrate a scam in which fraudsters abroad lured victims with false promises of millions in investment funding and inheritances.
Diuno and others posed as executives and employees of well-known U.S. banks to deceive victims into making payments to secure purported investment and money transfer agreements. Other members of the conspiracy then laundered these payments through U.S. bank accounts and directed them back to the scheme’s leaders in Nigeria.
Diuno admitted he and his co-conspirators used multiple aliases to convince victims the scam was authentic. Diuno also admitted to his role in the laundering of victim funds.
Acting on instructions from the scheme’s leader, Diuno directed a co-conspirator to disburse victim funds after receiving them. This included transferring funds to other bank accounts through currency exchangers and purchasing vehicles that were shipped back to scammers in Nigeria.
From October 2014 to September 2018, Diuno and his co-conspirators caused losses of nearly $5.7 million.
U.S. District Judge Alfred H. Bennett accepted the guilty plea and has set sentencing for May 9. At that time, Diuno faces up to 20 years in federal prison for each charge and a possible maximum fine of either $500,000 or up to twice the value of the victims’ losses.
Diuno will remain in custody pending sentencing.
The FBI and Department of State – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Christian Latham and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section are prosecuting the case.
Convicted drug trafficker sentenced for illegally re-entering country after seven prior removalsRead the Press Release
LAREDO, Texas – A 43-year-old Mexican man has been sentenced following another conviction for illegally re-entering the United States, announced U.S. Attorney Alamdar S. Hamdani.
Gabino Escamilla pleaded guilty Nov. 8, 2023.
U.S. District Judge Micaela Alvarez has now ordered Escamilla to serve 40 months in federal prison. Not a U.S. citizen, Escamilla is again expected to face removal proceedings following his imprisonment. At the hearing, the court heard about Escamilla’s conviction in 2016 for conspiracy to distribute more than five kilograms of cocaine in Columbus, Ohio. Escamilla had already been removed from the United States six times prior to his conviction for drug trafficking.
On Aug. 30, 2023, law enforcement encountered Escamilla near Laredo. Escamilla was first ordered removed Jan. 25, 2010, and has subsequently been removed by authorities seven times from 2010 to 2019.
Escamilla 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.
U.S. government disrupts botnet People’s Republic of China used to conceal hacking of critical infrastructureRead the Press Release
HOUSTON – A December 2023 court-authorized operation has disrupted a botnet of hundreds of U.S.-based small office/home office (SOHO) routers hijacked by People’s Republic of China (PRC) state-sponsored hackers.
The hackers, known to the private sector as “Volt Typhoon,” used privately-owned SOHO routers infected with the “KV Botnet” malware to conceal the PRC origin of further hacking activities directed against U.S. and other foreign victims. These further hacking activities included a campaign targeting critical infrastructure organizations in the United States and elsewhere that was the subject of a May 2023 FBI, National Security Agency, Cybersecurity and Infrastructure Security Agency (CISA), and foreign partner advisory. The same activity has been the subject of private sector partner advisories in May and December 2023, as well as an additional secure by design alert released today by CISA.
The vast majority of routers that comprised the KV Botnet were Cisco and NetGear routers that were vulnerable because they had reached “end of life” status; that is, they were no longer supported through their manufacturer’s security patches or other software updates. The court-authorized operation deleted the KV Botnet malware from the routers and took additional steps to sever their connection to the botnet, such as blocking communications with other devices used to control the botnet.
“The Justice Department has disrupted a PRC-backed hacking group that attempted to target America’s critical infrastructure utilizing a botnet,” said Attorney General Merrick B. Garland. “The United States will continue to dismantle malicious cyber operations – including those sponsored by foreign governments – that undermine the security of the American people.”
“China’s hackers are targeting American civilian critical infrastructure, pre-positioning to cause real-world harm to American citizens and communities in the event of conflict” said FBI Director Christopher Wray. “Volt Typhoon malware enabled China to hide as they targeted our communications, energy, transportation, and water sectors. Their pre-positioning constitutes a potential real-world threat to our physical safety that the FBI is not going to tolerate. We are going to continue to work with our partners to hit the PRC hard and early whenever we see them threaten Americans.”
“In wiping out the KV Botnet from hundreds of routers nationwide, the Department of Justice is using all its tools to disrupt national security threats – in real time,” said Deputy Attorney General Lisa O. Monaco. “Today’s announcement also highlights our critical partnership with the private sector – victim reporting is key to fighting cybercrime, from home offices to our most critical infrastructure.”
“Today, the FBI and our partners continue to stand firmly against People's Republic of China cyber actors that threaten our nation's cyber security,” said FBI Deputy Director Paul Abbate. “We remain committed to thwarting malicious activities of this type and will continue to disrupt and dismantle cyber threats, safeguarding the fabric of our cyber infrastructure.” “This operation disrupted the efforts of PRC state-sponsored hackers to gain access to U.S. critical infrastructure that the PRC would be able to leverage during a future crisis,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The operation, together with the release of valuable network defense guidance by the U.S. government and private sector partners, demonstrates the Department of Justice’s commitment to enhance cybersecurity and disrupt efforts to hold our critical infrastructure at risk.”
“Using traditional law enforcement tools to disrupt state-of-the-art technologies, the U.S. Attorney’s Office for the Southern District of Texas protected Americans from PRC government-sponsored cyber-criminals who used U.S. based routers to hack into American targets,” said U.S. Attorney Alamdar S. Hamdani. “This case demonstrates my office’s ongoing commitment to defending our critical infrastructure from PRC initiated cyber-attacks. We thank the FBI and the Justice Department’s National Security Division for its work, and we will continue to work shoulder to shoulder with them to shield our country from state-sponsored hackers.”
“The FBI’s dismantling of the KV Botnet sends a clear message that the FBI will take decisive action to protect our nation’s critical infrastructure from cyber-attacks,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “By ensuring home and small-business routers are replaced after their end-of-life expiration, everyday citizens can protect both their personal cyber security and the digital safety of the United States. We need the American public’s vigilance and support to continue our fight against malicious PRC-sponsored cyber actors.”
As described in court documents, the government extensively tested the operation on the relevant Cisco and NetGear routers. The operation did not impact the legitimate functions of, or collect content information from, hacked routers. Additionally, the court-authorized steps to disconnect the routers from the KV Botnet and prevent reinfection are temporary in nature. A router’s owner can reverse these mitigation steps by restarting the router. However, a restart that is not accompanied by mitigation steps similar to those the court order authorized will make the router vulnerable to reinfection.
The FBI is providing notice of the court-authorized operation to all owners or operators of SOHO routers that were infected with the KV Botnet malware and remotely accessed pursuant to the operation. For those victims whose contact information was not publicly available, the FBI has contacted providers (such as a victim’s internet service provider) and has asked those providers to provide notice to the victims.
FBI’s Houston Field Office and Cyber Division, the U.S. Attorney’s Office for the Southern District of Texas and the National Security Cyber Section of the Justice Department’s National Security Division led the disruption effort. The Justice Department’s Criminal Division Computer Crime and Intellectual Property Section and Office of International Affairs provided valuable assistance. These efforts would not have been successful without the partnership of numerous private-sector entities.
If you believe you have a compromised router. Please visit the FBI’s Internet Crime Complaint Center or report online to CISA. The remediated routers remain vulnerable to future exploitation by Volt Typhoon and other hackers, and the FBI strongly encourages router owners to remove and replace any end-of-life SOHO router currently in their networks.
The FBI continues to investigate Volt Typhoon’s computer intrusion activity.
U.S. Government Disrupts Botnet People’s Republic of China Used to Conceal Hacking of Critical InfrastructureRead the Press Release
Note: Since the publication of this press release, U.S. Government and foreign partner agencies have issued additional cybersecurity advisories (CSAs), and completed a Volt Typhoon Malware Analysis Report. Click to view the February 2024 CSAs on:
- PRC State-Sponsored Actors Compromise and Maintain Persistent Access to U.S. Critical Infrastructure
- Identifying and Mitigating Living Off the Land Techniques
- PRC State-Sponsored Cyber Activity: Actions for Critical Infrastructure Leaders
A December 2023 court-authorized operation has disrupted a botnet of hundreds of U.S.-based small office/home office (SOHO) routers hijacked by People’s Republic of China (PRC) state-sponsored hackers.
The hackers, known to the private sector as “Volt Typhoon,” used privately-owned SOHO routers infected with the “KV Botnet” malware to conceal the PRC origin of further hacking activities directed against U.S. and other foreign victims. These further hacking activities included a campaign targeting critical infrastructure organizations in the United States and elsewhere that was the subject of a May 2023 FBI, National Security Agency, Cybersecurity and Infrastructure Security Agency (CISA), and foreign partner advisory. The same activity has been the subject of private sector partner advisories in May and December 2023, as well as an additional secure by design alert released today by CISA.
The vast majority of routers that comprised the KV Botnet were Cisco and NetGear routers that were vulnerable because they had reached “end of life” status; that is, they were no longer supported through their manufacturer’s security patches or other software updates. The court-authorized operation deleted the KV Botnet malware from the routers and took additional steps to sever their connection to the botnet, such as blocking communications with other devices used to control the botnet.
“The Justice Department has disrupted a PRC-backed hacking group that attempted to target America’s critical infrastructure utilizing a botnet,” said Attorney General Merrick B. Garland. “The United States will continue to dismantle malicious cyber operations – including those sponsored by foreign governments – that undermine the security of the American people.”
“In wiping out the KV Botnet from hundreds of routers nationwide, the Department of Justice is using all its tools to disrupt national security threats – in real time,” said Deputy Attorney General Lisa O. Monaco. “Today’s announcement also highlights our critical partnership with the private sector – victim reporting is key to fighting cybercrime, from home offices to our most critical infrastructure.”
“China’s hackers are targeting American civilian critical infrastructure, pre-positioning to cause real-world harm to American citizens and communities in the event of conflict,” said FBI Director Christopher Wray. “Volt Typhoon malware enabled China to hide as they targeted our communications, energy, transportation, and water sectors. Their pre-positioning constitutes a potential real-world threat to our physical safety that the FBI is not going to tolerate. We are going to continue to work with our partners to hit the PRC hard and early whenever we see them threaten Americans.”
“Today, the FBI and our partners continue to stand firmly against People's Republic of China cyber actors that threaten our nation's cyber security,” said FBI Deputy Director Paul Abbate. “We remain committed to thwarting malicious activities of this type and will continue to disrupt and dismantle cyber threats, safeguarding the fabric of our cyber infrastructure.”
“This operation disrupted the efforts of PRC state-sponsored hackers to gain access to U.S. critical infrastructure that the PRC would be able to leverage during a future crisis,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The operation, together with the release of valuable network defense guidance by the U.S. government and private sector partners, demonstrates the Department of Justice’s commitment to enhance cybersecurity and disrupt efforts to hold our critical infrastructure at risk.”
“Using traditional law enforcement tools to disrupt state-of-the-art technologies, the U.S. Attorney’s Office for the Southern District of Texas protected Americans from PRC government-sponsored cyber-criminals who used U.S. based routers to hack into American targets,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “This case demonstrates my office’s ongoing commitment to defending our critical infrastructure from PRC initiated cyber-attacks. We thank the FBI and the Justice Department’s National Security Division for its work, and we will continue to work shoulder to shoulder with them to shield our country from state-sponsored hackers.”
“The FBI’s dismantling of the KV Botnet sends a clear message that the FBI will take decisive action to protect our nation’s critical infrastructure from cyber-attacks,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “By ensuring home and small-business routers are replaced after their end-of-life expiration, everyday citizens can protect both their personal cyber security and the digital safety of the United States. We need the American public’s vigilance and support to continue our fight against malicious PRC-sponsored cyber actors.”
As described in court documents, the government extensively tested the operation on the relevant Cisco and NetGear routers. The operation did not impact the legitimate functions of, or collect content information from, hacked routers. Additionally, the court-authorized steps to disconnect the routers from the KV Botnet and prevent reinfection are temporary in nature. A router’s owner can reverse these mitigation steps by restarting the router. However, a restart that is not accompanied by mitigation steps similar to those the court order authorized will make the router vulnerable to reinfection.
The FBI is providing notice of the court-authorized operation to all owners or operators of SOHO routers that were infected with the KV Botnet malware and remotely accessed pursuant to the operation. For those victims whose contact information was not publicly available, the FBI has contacted providers (such as a victim’s internet service provider) and has asked those providers to provide notice to the victims.
FBI Houston Field Office and Cyber Division, U.S. Attorney’s Office for the Southern District of Texas, and National Security Cyber Section of the Justice Department’s National Security Division led the disruption effort. The Justice Department’s Criminal Division’s Computer Crime and Intellectual Property Section and Office of International Affairs provided valuable assistance. These efforts would not have been successful without the partnership of numerous private-sector entities.
If you believe you have a compromised router, please visit the FBI’s Internet Crime Complaint Center or report online to CISA. The remediated routers remain vulnerable to future exploitation by Volt Typhoon and other hackers, and the FBI strongly encourages router owners to remove and replace any end-of-life SOHO router currently in their networks.
The FBI continues to investigate Volt Typhoon’s computer intrusion activity.
5018 search warrant 5530 search warrant 5451 search warrant 5432 search warrantTrap house drug dealer sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 32-year-old Corpus Christi woman has been sentenced for trafficking narcotics, announced U.S. Attorney Alamdar S. Hamdani.
Melissa Rendon pleaded guilty Aug. 4, 2023.
U.S. District Judge Drew B. Tipton has now ordered Rendon to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard evidence regarding Rendon’s aggravated role in the offense, her efforts to obstruct the investigation and her use of her minor daughter to hide evidence from authorities.
After conducting surveillance for a month, on July 7, 2022, law enforcement executed a search warrant at a residence in Corpus Christi where they found several people, but not Rendon. Authorities also found meth, cocaine, heroin, cocaine base (crack) and fentanyl – some packaged for sale – throughout the residence.
The investigation revealed Rendon distributed narcotics from the residence and had recruited a woman to live at the residence and to distribute drugs for her. Law enforcement additionally found a digital scale, baggies and latex gloves within the residence.
On March 2, 2023, authorities witnessed Rendon leaving the residence with four children and drop them off at school. They then conducted a second search. At that time, they recovered cocaine, cocaine base (crack), Ziploc baggies, a digital scale, latex gloves and several pieces of mail addressed to Rendon.
The investigation also revealed Rendon made calls from the jail asking her juvenile daughter to go to her residence, find a white cell phone, change the password and delete everything including all of the pictures, Facebook, texts and Snapchat from the phone.
Rendon 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 with the assistance of the Nueces County District Attorney’s Office Criminal Investigation Unit. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
FBI agent indicted for theftRead the Press Release
McALLEN, Texas – A 36-year-old federal agent from Houston has been charged with theft of personal and government property and providing false statements, announced U.S. Attorney Alamdar S. Hamdani.
Authorities have arrested Nicholas Anthony Williams. He is set to make his initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m.
According to the indictment, returned Jan. 31, Williams has been an FBI special agent in the Houston Field Office since 2019. He allegedly served in both the criminal violent gang and counterterrorism squads.
The charges allege that from March 2022 to July 2023, Williams took money or property from multiple residences while executing search warrants as an FBI special agent and then allegedly converted the money or property to his personal use.
Williams also stole multiple cell phones which were FBI property and provided false statements with regard to several fraudulent charges on his government-issued credit card, according to the indictment.
If convicted, he faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The Department of Justice Office of Inspector General is conducting the investigation. Assistant U.S. Attorney Laura Garcia and Sarina DiPiazza prosecuted 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.
Houston dental clinic operator convicted in $6M pediatric fraud schemeRead the Press Release
HOUSTON - A 68-year-old man has pleaded guilty in a $6 million Medicaid fraud and kickback scheme, announced U.S. Attorney Alamdar S. Hamdani.
Rene Gaviola was the operator of Floss Family Dental Care clinic located in Houston. From 2018 until April 2021, Gaviola admitted to submitting fraudulent claims to Medicaid for pediatric dental services, including numerous cavity fillings, that Floss did not provide.
Gaviola admitted he employed one individual to practice dentistry without a license on Medicaid-insured children. He also operated Floss, on occasion, without any dentists at all. Floss billed Medicaid for these dental services as if licensed dentists provided them.
Gaviola also admitted to paying kickbacks to marketers and caregivers of Medicaid-insured children to bring them to Floss for dental services. Ultimately, he admitted to laundering Medicaid monies from the Floss business bank account to his personal bank account in several transactions exceeding $100,000.
From 2019 to 2021, the dental clinic billed Medicaid nearly $6.9 million in claims for pediatric dental services. Medicaid paid approximately $4.9 million on those claims.
“These precious Medicaid funds were intended to provide necessary dental services to low-income children in our community, not line Gaviola’s pockets,” said Hamdani. “This conviction is a reminder to all who attempt to defraud our healthcare system that we are committed to stamping out fraud and protecting the integrity of Medicaid and other federal programs.”
“Gaviola took advantage of the system, and he took advantage of the children to defraud the system,” said Special Agent in Charge Douglas Williams of the FBI Houston field office. “Not only that, he also jeopardized the young patients' healthcare by putting them in the hands of unlicensed practitioners, all in the name of his greed. This case is a perfect example that healthcare fraud is not a victimless crime, and the FBI will continue to follow and uncover the fraud.”
Chief U.S. District Judge Randy Crane accepted the guilty plea and has set sentencing for April 16. At that time, Gaviola faces up to 10 years for conspiracy to commit health care fraud, each of five substantive health care fraud counts, three counts of payment of kickbacks and six counts of money laundering as well as five years for conspiracy to pay and receive kickbacks. The convictions also carry as possible punishment hundreds of thousands in potential fines.
Gaviola was permitted to remain on bond pending sentencing.
FBI, Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson and Assistant U.S. Attorney Lauren Valenti are prosecuting the case.
Corpus man on supervision for firearms charge imprisoned for drug stash found at homeRead the Press Release
CORPUS CHRISTI, Texas – A 36-year-old man has been sentenced for possession with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Phil Cuellar III aka Tex pleaded guilty Aug. 7, 2023.
U.S. District Judge David S. Morales has now sentenced him to 168 months in federal prison to be followed by five years of supervised release. Cuellar had been on supervised release for a previous felon in possession of a firearm charge at the time of his drug arrest. As such, the court ordered him to serve an additional 20 months in federal prison, 10 months to be served concurrently and 10 months to be served consecutively for a total 178-month-term of imprisonment.
During the hearing, the court heard additional evidence regarding Cuellar’s criminal history including Cuellar’s gang membership in Tango Blast, two prior felony drug possession convictions involving intent to deliver, evading arrest in a vehicle and felon in possession of a firearm.
The investigation began after Cuellar attempted to sell narcotics after reaching out to someone on social media.
On May 24, 2023, law enforcement executed a search warrant on Cuellar’s residence. During the search, they found 389 grams of meth, over 27 grams of heroin, cocaine, marijuana, THC cartridges, almost $20,000 in cash and a loaded firearm that had been reported stolen.
Cuellar 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 with assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Corpus Christi Police Department’s Gang Unit and Homeland Security Investigations. Assistant U.S. Attorneys Barbara J. De Pena and Brittany Jensen prosecuted the case.
Mexican Mafia gang member heads back to prison for illegal firearmRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old man has been sentenced to federal prison for illegally possessing a firearm while a convicted felon, announced U.S. Attorney Alamdar S. Hamdani.
Alonso Guerrero Garcia pleaded guilty Nov. 3, 2023.
U.S. District Judge David S. Morales has now ordered Garcia to serve 120 months in prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Garcia used the firearm to forcibly abduct two individuals at gunpoint before he was apprehended.
On Jun. 3, 2023, authorities encountered Garcia when they conducted a traffic stop on a vehicle traveling the wrong way down a one-way street at a high rate of speed.
Garcia, a known Mexican Mafia gang member, was in the rear seat of the vehicle. During a search, authorities discovered a Springfield Armory Champion 9mm pistol with gold grips and Aztec markings under the driver’s seat of the vehicle. Authorities also discovered photographs of Garcia holding the distinctive firearm.
Further investigation revealed Garcia had been previously convicted of being a felon in possession of a firearm in addition to convictions for aggravated assault and manufacture and delivery of a controlled substance. As a convicted felon, he is prohibited from possessing a firearm per federal law.
Garcia 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 the assistance of the Corpus Christi Police Department. Assistant U.S. Attorneys John Marck and Liesel Roscher prosecuted the case.
This case is being prosecuted 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.
Local gang member imprisoned for trafficking over 900 grams of heroin and various narcoticsRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Corpus Christi man has been sentenced following his conviction of drug trafficking, announced U.S. Attorney Alamdar S. Hamdani.
Arturo Bazan pleaded guilty Nov. 14, 2023.
U.S. District Judge David S. Morales has now ordered Arturo Bazan to serve 228 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court viewed evidence from the crime scene and reviewed Bazan’s gang activities on social media. In handing down the sentence, the court noted the seriousness of the crime and its negative impact on the community.
In 2023, authorities began investigating a local heroin distributor which ultimately led authorities to Bazan and his associates operating out of a Corpus Christi residence.
On Aug. 9, 2023, law enforcement executed a search warrant at Bazan’s residence, at which time they discovered over a kilogram of meth, three kilograms of cocaine, over 900 grams of heroin and more than $20,000. They also found other controlled substances such as alprazolam pills, Xanax and marijuana.
They also recovered multiple firearms throughout the residence, to include a Ruger 5.7 handgun and an Anderson Arms AM-15 in Bazan’s bedroom. Those two firearms were each loaded with a full magazine.
Further investigation revealed Bazan was a local gang member who distributed narcotics on both an individual and large-scale basis.
Bazan 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 Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney John Lamont prosecuted the case.
Football ticket scammer sent to prisonRead the Press Release
HOUSTON – A 49-year-old California resident has been sentenced for orchestrating a ticket scam across the United States that included a Texas A&M football game, announced U.S. Attorney Alamdar S. Hamdani.
Derrick Langford pleaded guilty Aug. 24, 2023.
U.S. District Judge Charles Eskridge has now ordered Langford to serve 24 months in federal prison to be immediately followed by one year of supervised release.
“For years, Langford engaged in a multi-level fraud,” said Hamdani. “In doing so, he victimized identity theft victims, unsuspecting internet buyers and, ultimately, the venues, from football stadiums to music arenas, who bore the monetary loss. But the perceived anonymity of the internet did not protect him. His scheme unraveled thanks to the efforts of the 12th Man Foundation at Texas A&M University.
At the time of his plea, Langford admitted he used email to obtain stolen credit card information from victims across the United States. He used that data and false identities to buy tickets for sporting events, concerts and other entertainment venues nationwide. He then re-sold the tickets on internet-based resale sites like Ticket Liquidator.
One such event tied to Langford was the Texas A&M football game against Clemson Sept. 8, 2018. At the time of the plea, Langford admitted he created false buyer accounts and used stolen credit card numbers to buy tickets to that game and then resold the fraudulently purchased tickets on resale sites to unsuspecting buyers.
Texas A&M discovered the fraud and invalidated the tickets. However, some tickets had already been sold to unsuspecting buyers which caused the university to incur a 100% loss on the fraudulent tickets.
As the scheme continued, Langford received stolen credit card information and personal identifying information of more than 75 victims in one of his email accounts.
Langford 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 FBI conducted the investigation with the assistance of the Texas A&M University Police Department. Assistant U.S. Attorneys Quincy Ollison and Belinda Beek prosecuted the case.
Weslaco resident pleads guilty to attempting to transport weapons and possession of child pornographyRead the Press Release
McALLEN, Texas – A 36-year-old Weslaco man has pleaded guilty to straw purchasing and possessing child pornography on his cellphone, announced U.S. Attorney Alamdar S. Hamdani.
From June 5, 2016, through May 9, 2022, Jose Angel Hinojosa Jr. engaged in firearms dealing by straw purchasing firearms from an online gun broker. He then arranged for the weapons to be exported into Mexico. Law enforcement was able to locate several weapons tied to Hinojosa.
As part of his plea, he admitted to attempting to smuggle more than 40 firearms.
During the firearms investigation, authorities also learned of possible crimes involving child pornography. They executed search warrants and found several videos on his phone showing minors engaging in sexual conduct. Hinojosa admitted to receiving child pornography on his cellphone from various third parties.
“Hinojosa not only illegally possessed dozens of firearms, with plans to send them to Mexico, he also possessed videos of children engaged in sexual conduct,” said Hamdani. “This case is an example of the multitude of crimes the Southern District’s prosecutors fight on a daily basis, and whether its transporting firearms or possessing child pornography, this office will seek to hold those like Hinojosa accountable.”
U.S. District Judge John D. Rainey accepted the plea and set sentencing for April 24. At that time, Hinojosa faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Hinojosa was permitted to remain on bond pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in conjunction with Homeland Security Investigations - Child Exploitation Task Force. Assistant U.S. Attorney Eric D. Flores is prosecuting the case.
Hilcorp San Juan resolves False Claims Act claims for oil and natural gas royalty underpayments to the United StatesRead the Press Release
HOUSTON – Hilcorp San Juan L.P., an oil and gas company with offices in Houston as well as Aztec, New Mexico, has agreed to resolve allegations it knowingly underpaid royalties owed on oil and natural gas produced from federal lands. The company has agreed to pay $34.6 million to resolve its False Claims Act and other liability for the conduct.
“Oil and gas production is a centerpiece of Houston and Texas’s economies, and for businesses to thrive it’s important that oil and gas companies play by the rules. That’s why my office will vigorously pursue those who deprive the United States of revenue,” said U.S. Attorney Alamdar S. Hamdani. “Royalties from oil and gas production on federal lands help support various public programs, and this settlement demonstrates my steadfast commitment to hold accountable those who fail to pay royalties in full accordance with the law.”
“U.S. taxpayers deserve a fair share of the revenues received by companies that extract natural resources from public lands” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department remains committed to ensuring that energy companies accurately report and pay to the United States the amount of royalties that are owed for their use of these resources.”
“The obligation to properly pay mineral royalties to the American public and other mineral owners is essential to the responsible development of minerals from lands under federal jurisdiction, and along with the Office of Natural Resources Revenue and the Office of the Solicitor, the Office of Inspector General (OIG) is committed to working with the Department of Justice to ensure that companies meet their legal responsibilities,” said Special Agent in Charge Ron Gonzales for the OIG’s Energy Investigations Unit.
Congress allows federal lands to be leased for the production of oil and natural gas in exchange for the payment of royalties on the value of the oil and gas produced. Lessees are required to pay monthly royalties to the federal government for any oil and gas removed or sold from the lease. Although lessees may make estimated royalty payments the month following production, they are required to pay actual royalties at the end of the month following the month in which the estimated payment is made. Lessees are also expected to use a specific transaction code for estimated payments, so that the government can identify circumstances in which a company has temporarily submitted royalties based on estimates. The settlement resolves allegations that, when reporting and paying royalties from August 2017 through December 2018, Hilcorp San Juan knowingly made payments to the federal government based on estimated volumes and prices without indicating that the payments were based on estimates and without subsequently making payments in the following month based on actual volumes and values. This resulted in the underpayment of royalties to the United States.
Hilcorp San Juan cooperated with the United States’ investigation by assisting in the determination of losses and received credit under the Department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Southern District of Texas, DOI’s Office of the Inspector General-Energy Investigations Unit, DOI’s Office of the Solicitor and DOI’s Office of Natural Resources Revenue. Assistant U.S. Attorney Kenneth Shaitelman handled the matter along with Trial Attorney Jonathan Thrope.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Hilcorp San Juan Resolves False Claims Act Claims for Oil and Natural Gas Royalty Underpayments to the United StatesRead the Press Release
Hilcorp San Juan L.P., an oil and gas company with offices in Aztec, New Mexico, and Houston, has agreed to resolve allegations that it knowingly underpaid royalties owed on oil and natural gas produced from federal lands. The company has agreed to pay $34.6 million to resolve its False Claims Act and other liability for the conduct.
“U.S. taxpayers deserve a fair share of the revenues received by companies that extract natural resources from public lands” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department remains committed to ensuring that energy companies accurately report and pay to the United States the amount of royalties that are owed for their use of these resources.”
“Oil and gas production is a centerpiece of Houston and Texas’s economies, and for businesses to thrive it’s important that oil and gas companies play by the rules. That’s why my office will vigorously pursue those who deprive the United States of revenue,” said U.S. Attorney for the Southern District of Texas. “Royalties from oil and gas production on federal lands help support various public programs, and this settlement demonstrates my steadfast commitment to hold accountable those who fail to pay royalties in full accordance with the law.”
“The obligation to properly pay mineral royalties to the American public and other mineral owners is essential to the responsible development of minerals from lands under Federal jurisdiction, and along with the Office of Natural Resources Revenue and the Office of the Solicitor, the Office of Inspector General is committed to working with the Justice Department to ensure that companies meet their legal responsibilities,” said Special Agent in Charge Ron Gonzales of the Department of the Interior Office of Inspector General’s (DOI-OIG) Energy Investigations Unit.
Congress allows federal lands to be leased for the production of oil and natural gas in exchange for the payment of royalties on the value of the oil and gas produced. Lessees are required to pay monthly royalties to the federal government for any oil and gas removed or sold from the lease. Although lessees may make estimated royalty payments the month following production, they are required to pay actual royalties at the end of the month following the month in which the estimated payment is made. Lessees are also expected to use a specific transaction code for estimated payments, so that the government can identify circumstances in which a company has temporarily submitted royalties based on estimates. The settlement resolves allegations that, when reporting and paying royalties from August 2017 through December 2018, Hilcorp San Juan knowingly made payments to the federal government based on estimated volumes and prices without indicating that the payments were based on estimates and without subsequently making payments in the following month based on actual volumes and values, resulting in the underpayment of royalties to the United States.
Hilcorp San Juan cooperated with the United States’ investigation by assisting in the determination of losses and received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; U.S. Attorney’s Office for the Southern District of Texas; and DOI-OIG’s Energy Investigations Unit, Office of the Solicitor, and Office of Natural Resources Revenue.
Trial Attorney Jonathan Thrope of the Civil Division and Assistant U.S. Attorney Kenneth Shaitelman for the Southern District of Texas handled the case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementTwo sentenced for robbing multiple commercial businesses at gunpointRead the Press Release
HOUSTON – Two men have been ordered to prison for robbery and brandishing a firearm during crime sprees in two separate, unrelated, but similar cases, announced U.S. Attorney Alamdar S. Hamdani.
Angel Servellon, 30, El Salvador, pleaded guilty Aug. 10, 2023, while DaVonte Williams, 29, Houston, entered his plea Aug. 29, 2023.
U.S. District Judge Alfred Bennett has now ordered Servellon to serve 24 months for the three robberies as well as an additional 168 months for the firearm charges which must be served consecutively. The total 233-month-term will be followed by three years of supervised release. In imposing the sentence, the court noted the fact Servellon would be removed from the United States.
In a separate, but similar case sentenced Jan. 17, U.S. District Judge Gray Miller imposed a 151-term of imprisonment for Williams for two robberies. He also received an additional 84 months for the firearm charge which must be served consecutively for a total of 235 months. The total 235-month sentence will also be followed by three years of supervised release.
“Although these men went on different crime sprees, targeting a drug store, convenience store and gas station, and while both were sentenced by different judges, the result was essentially the same - almost 20 years in prison,” said Hamdani. “As the son of an immigrant who donned a convenience store uniform every night at the conclusion of his morning shift as a taxi driver, I am hopeful that sentences like these will deter future gun toting would-be criminals and keep safe the clerks who work, often by the hour and late into night, serving our communities in stores large and small.”
On Feb. 16, 2020, Servellon walked into a Village Food Store located on Chimney Rock. He went behind the counter, pointed a firearm at a cashier and ordered her to open the register and give him the money. The clerk, fearing for her life, complied, and Servellon soon fled.
Less than two weeks later, he jumped the counter at an Exxon gas station on Fondren, pointed a gun at the cashier and demanded all the money from the register. His crime spree continued to March 3, 2020, when went to another Exxon, again pulled out a firearm and demanded cash from the cashier. After he fled with the money, law enforcement witnessed him pull into an apartment complex, exit the vehicle and attempt to run. However, authorities quickly caught him and found a firearm magazine in his pocket. An additional search of the area led to the discovery of a semi-automatic handgun Servellon had thrown in the bushes of the apartment complex. It matched the firearm brandished during the robberies.
In a separate case, Williams commenced his string of robberies Jan. 12, 2022, at an Exxon gas station located on the Eastex freeway which continued the same night at a CVS located on Tidwell. During his robberies, Williams would enter the commercial businesses and brandish a firearm at the employees, demanding money from the registers.
Law enforcement had been searching for a specific vehicle after the Exxon robbery and saw a similar one leaving the CVS at a high rate of speed. They attempted to stop it, but the driver, later identified as Williams, accelerated and failed obey traffic laws.
The investigation led to Williams’ car and vehicle. At the time of his arrest, authorities recovered a firearm that matched the one used during both robberies. Williams also matched the person seen on the surveillance video, including having a distinct limp.
Both men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Bureau of Alcohol, Tobacco, Firearms and Explosives - Crime Gun Strike Force and the Houston Police Department handled both investigations. Assistant U.S. Attorney Jill Stotts prosecuted the cases.
Three convicted in alien smuggling plot for Mexican cartelRead the Press Release
LAREDO, Texas – Three individuals have pleaded guilty to their roles in a human smuggling conspiracy involving the Cartel del Noreste (CDN), announced U.S. Attorney Alamdar S. Hamdani.
Laredo residents Bernardo Aniceto Garza, 26, and Francisco Suarez, 19; and Mexican citizen Luis Daniel Segura Guzman, 25, each pleaded guilty to conspiracy to transport undocumented aliens.
“The cartels are increasing the use of social media as part of their illegal business model,” said Hamdani. “Applications, such as Facebook, allow these organizations to advertise human smuggling services to large audiences along the U.S. border. In this case, the Facebook ads helped facilitate the transportation of women and children by smugglers armed with dangerous weapons.”
On Aug. 23, 2023, authorities discovered a Facebook post that appeared to be advertising transportation services for undocumented aliens via sleeper cabs of tractor trailers. An undercover investigation revealed Segura coordinated the transportation of three undocumented aliens for approximately $8,000. Law enforcement learned Segura arranged for a black Ford Raptor to make the pickup in Laredo that afternoon.
Authorities spotted a black Ford Raptor arrive at the meet location. Garza was driving. Undercover law enforcement then contacted Segura to cancel the previously arranged pickup. Garza left and travelled to a nearby parking lot to pick up three other individuals. He then transported them to a truck yard and loaded the aliens into a parked tractor. Authorities stopped Garza’s vehicle minutes after he left the truck yard and located a firearm inside the Ford Raptor.
Law enforcement approached the tractor and located two women and a 15-year-old minor inside the vehicle. All three were citizens of Mexico and El Salvador and illegally present in the United States.
On Sept. 16, 2023, authorities encountered Segura in Laredo and identified him as a citizen of Mexico, illegally present in the United States. Segura admitted the CDN had recruited him in Mexico to smuggle aliens and that he worked with Suarez to do so. Law enforcement located a cell phone in Segura’s possession that was still logged into the Facebook account used to advertise and coordinate the smuggling event.
On Sept. 19, 2023, authorities apprehended Suarez in a separate smuggling attempt during which he was acting as a scout. Suarez admitted he worked for Garza and provided him with the three migrants he was caught transporting Aug. 23, 2023.
U.S. District Judge Diana Saldana will set sentencing at later date. At that time, each faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Suarez and Guzman will remain in custody pending that hearing, while Garza was permitted to remain on bond.
Laredo Police Department, Border Patrol and Homeland Security Investigations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation with the assistance of Customs and Border Protection Air and Marine Operations and the Texas Department of Public Safety. 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 Jennifer Day is prosecuting the case.
The case is supported through Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland created JTFA in June 2021 in partnership with the Department of Homeland Security (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, Drug Enforcement Administration and other partners. To date, JTFA’s work has resulted in over 265 domestic and international arrests of leaders, organizers and significant facilitators of human smuggling; more than 200 convictions; significant jail sentences imposed; and substantial asset forfeiture.