Southern District of Texas
Press releases recorded for this federal judicial district.
Sugar Land resident sent to prison for Bitstamp cryptocurrency fraud schemeRead the Press Release
HOUSTON – A 37-year-old man has been sentenced for aggravated identity theft in connection with a scheme to fraudulently obtain and launder more than $500,000, announced U.S. Attorney Alamdar S. Hamdani.
Xiaofei Chen pleaded guilty Oct. 12, 2023.
U.S. District Judge Alfred H. Bennett has now ordered Chen to serve 24 months in federal prison to be immediately followed by one year of supervised release. At the hearing, Chen apologized for his criminal conduct and told the court he regretted his actions.
“The emergence of cryptocurrency has revolutionized finance, but has also provided a new playground for identity theft and financial fraud,” said Hamdani. “Whether the stolen money is counted in dollars or bitcoins, the Southern District’s prosecutors will aggressively prosecute identity thieves and fraudsters and not rest until the offenders are behind bars.”
Chen had obtained the name, driver’s license and banking account of a known victim. Chen then arranged a fraudulent wire of $520,000 from that person’s checking account and opened a Bitstamp cryptocurrency exchange account using the victim’s information without consent.
Bitstamp is an online currency exchange where individuals can covert monies into Bitcoin and other cryptocurrency. It is based in Luxembourg and headquartered in London, United Kingdom.
Chen used the Bitstamp and other cryptocurrency accounts to convert the proceeds into Bitcoin. He then laundered the Bitcoin through numerous transactions.
He was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation. Assistant U.S. Attorneys Christian Latham and Belinda Beek prosecuted the case.
Mexican man imprisoned for possessing almost 100 kilograms of cocaineRead the Press Release
McALLEN, Texas – A 44-year-old Mexican citizen has been ordered to prison for possession with intent to distribute 98 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Gabriel Alejandro Aguirre-Garcia pleaded guilty Aug. 18, 2023.
U.S. District Judge Micaela Alvarez has now ordered Aguirre-Garcia to serve 108 months in federal prison. Not a U.S. citizen, Aguirre-Garcia is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence that Aguirre-Garcia had been working for the drug trafficking organization for at least six months and during that that time, he received cocaine two to three times per week and stored it in a dresser in his daughter’s bedroom prior to delivering it to other individuals. In handing down the sentence, the court noted that he put his family in jeopardy by storing the drugs in his home and how lucky his family was that they were never victims of a home invasion by a rip crew. Judge Alvarez told Aguirre-Garcia that she would have hoped that it crossed his mind how dangerous his involvement this crime was.
On Dec. 6, 2022, law enforcement conducted a traffic stop on a Ford F-150 truck and identified the driver as Aguirre-Garcia. He granted consent to search his vehicle, and a K-9 alerted authorities to a toolbox in the truck for the odor of narcotics. A search of the toolbox revealed 20 bundles of cocaine.
Law enforcement arrived on scene and Aguirre-Garcia also gave consent to search his house located in McAllen. That search led to the discovery of 66 bundles of cocaine in a dresser drawer. Aguirre-Garcia stated he was being paid to store and transport the narcotics.
The 86 bundles of cocaine seized weighed approximately 98 kilograms and have a street value of $1,176,000.
Aguirre-Garcia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the McAllen Police Department. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Honduran convicted smuggler imprisoned for illegally entering country after seven removalsRead the Press Release
LAREDO, Texas – A 42-year-old Honduran man has been sentenced following another conviction for illegally re-entering the United States following an order of removal, announced U.S. Attorney Alamdar S. Hamdani.
Abner Jovani Castellanos pleaded guilty Oct. 4, 2023.
U.S. District Judge Marina Garcia Marmolejo has now ordered him to serve 30 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about Castellanos’ previous conviction in 2008 for human smuggling, in which he worked as a brush guide in a smuggling operation. During that attempt, an El Salvadoran man obtained serious injuries and part of his leg had to be amputated after it was caught underneath a moving train – Castellanos and another brush guide ordered the man to jump off the train.
On June 10, 2023, law enforcement encountered Castellanos near Laredo. He was first ordered to be removed from the United States on June 5, 2001, with six subsequent removals from 2001 to 2020, along with prior convictions for illegal entry and illegal re-entry.
Castellanos 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. and Assistant U.S. Attorney Brandon Scott Bowling prosecuted the case.
Convicted smuggler heads to prison after second alien smuggling attemptRead the Press Release
LAREDO, Texas – A 39-year-old has been sentenced following another conviction for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
David Alberto Martinez, Laredo, pleaded guilty Oct. 12, 2023, to transporting and conspiring to transport undocumented non-citizens.
U.S. District Judge Marina Garcia Marmolejo has now ordered Martinez to serve a total of 42 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about Martinez’s previous convictions for human smuggling.
On Aug. 4, 2023, Martinez drove a personal vehicle to the primary inspection lane at the Border Patrol (BP) checkpoint on Interstate Highway 35 north of Laredo. The vehicle contained eight occupants including Martinez, an undocumented citizen of Guatemala and five juvenile children not related to either Martinez or the others.
Martinez lied to authorities, stating the vehicle’s occupants were “all family,” attempting to pose as a familial unit to deceive law enforcement. One of the smuggled persons reported they had paid $8,500 to a human smuggling organization to be transported further into the United States.
Martinez’ prior conviction arose after law enforcement responded to a major accident in Duval County, during which the vehicle he used to transport 10 individuals had overturned. The crash ejected two of the occupants and an additional six others required emergency medical treatment and transportation to the hospital.
Martinez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP conducted the investigation. Special Assistant U.S. Attorney (AUSA) Terence A. Check Jr. and AUSA Brandon Scott Bowling prosecuted the case.
Richmond clinic owners agree to settle allegations regarding acupuncture devicesRead the Press Release
HOUSTON – The owners of a Richmond clinic have agreed to pay a total of up to $108,000 to settle allegations they submitted false claims, announced U.S. Attorney Alamdar S. Hamdani.
Ijeoma Bethel, 43, Sugar Land, Yvonne Hernandez, 41, Houston, and Nick Bryant Villegas, 43, Pearland, are the owners of Texas Wellness Clinic PLLC in Richmond. Bethel and Villegas are nurse practitioners and Hernandez is a chiropractor.
From Jan. 27, 2016, to Sept. 16, 2020, Bethel, Villegas, Hernandez and Texas Wellness Clinic billed Medicare for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring the use of an operating room. Medicare pays thousands of dollars per procedure.
However, the government alleged that no surgery was involved. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind the ears with an adhesive.
In addition to the financial settlement, Texas Wellness Clinic agreed to a five-year-period of exclusion from participation in any federal health care programs.
Campbell Medical Clinic in Houston previously employed Bethel, Villegas and Hernandez before they decided to open Texas Wellness Clinic—where they continued to improperly bill Medicare. The owner of Campbell Medical Clinic, chiropractor Suhyun An, previously agreed to a $2.6 million settlement and a 10-year exclusion from federal health care programs. The claims resolved are allegations only, and there has not been an admission of wrongdoing.
To date, this is the 11th case the Southern District of Texas has resolved for similar conduct. In addition to the settlement with An, the other matters included settlements with a Katy anesthesiologist, Houston pain doctor, Rockport chiropractor, Laredo pain doctor, The Woodlands pain doctor, Cypress marketing representative, Ohio coding consultant, and two separate settlements (linked here and here) with Cypress podiatrists.
The Department of Health and Human Services – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Organizer of a four year-old’s kidnapping sent to prisonRead the Press Release
McALLEN, Texas – A 24-year-old Edinburg resident has been sent to prison following his conviction for conspiracy to commit hostage taking, announced U.S. Attorney Alamdar S. Hamdani.
Gilbert John Montez pleaded guilty April 24, 2023.
U.S. District Judge Micaela Alvarez has now ordered Montez to serve 200 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that when an individual is involved in a criminal enterprise, he can be held accountable for the actions of all the participants involved. Judge Alvarez stated that ultimately you have a young child being removed from his mother, whether voluntarily or involuntarily, and handed from person to person which can be very traumatic for the child. The court further pointed out that the child was being used as a piece of property that had value and could be used for profit.
“Human smugglers have a bad habit of becoming human kidnappers. Montez targeted a vulnerable family and leveraged a young child’s safety and a parents’ love to extort as much money as possible,” said Hamdani. “He did not care that this child was passed from stranger to stranger, each time increasing the risk the child would be harmed. Instead, Montez put profit before people and only cared about making more money. Now, because of the Southern District’s prosecutors and investigators, Montez’s heartless business is “out of business.”
“HSI is committed to aggressively targeting human smugglers and smuggling organizers that have no qualms about using threats and even violence to collect their smuggling fees,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI) - San Antonio. “We’ll continue to work jointly with our law enforcement partners to ensure that those who exploit people in these ruthless ways will themselves face serious consequences.”
Montez recruited and hired individuals to transport and hold a 4-year-old child for ransom.
On March 31, 2022, Jose Andres Romo-Torres took the young child from his mother at a Mission Texas house holding smuggled migrants and gave him to two strangers, Larissa Celena Gracia and Nichole Marie Garcia Tichacek to transport past the Falfurrias Border Patrol Checkpoint to Corpus Christi. The women then handed the child off to Michael Gee Ingram who transported the child to Houston. Once there, the child was given to Jonathan Orlando Ortiz-De Leon who took him to his apartment in Stafford.
During this time, Montez and Ortiz-De Leon contacted the young child’s father and informed him that his son would not be released until he paid $4,500. On April 3, 2023, Montez hired Carlos Oyervides to help Ortiz-De Leon collect the ransom payment and deliver the child to his father. Oyervides also spoke with the child’s father and told him he needed to pay the ransom to get his son back.
Authorities learned of the scheme and attempted to make arrangements with Oyervides and Ortiz-De Leon for the release of the child, but failed. They then tracked them down to an apartment complex in Stafford, took them into custody and located the child.
The others involved in the scheme all pleaded guilty to their varying roles and have also been ordered to prison.
Montez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with the assistance of the Mission Police Department. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Men imprisoned for dealing $500,000 of cocaineRead the Press Release
McALLEN, Texas – Three men have been ordered to federal prison for their roles in the distribution of over 40 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Legal permanent resident Luis Jaime Escamilla, 50, originally from Mexico and residing there, Joel Otoniel Medina, 35, Penitas, and Andres Montalvo Jr., 38, Mission, each pleaded guilty June 16, 2023, to possession with intent to distribute five kilograms or more of cocaine.
Chief U.S. District Judge Randy Crane has now sentenced Escamilla and Medina to serve 66 and 46 months in federal prison, respectively, while Medina received 12 months and one day. Medina and Montalvo will be on supervised release for three years following their sentences, while Escamilla could face the loss of his legal status to reside in the country. At the hearing, the court considered the number of occasions they each engaged in narcotics trafficking and the role they had in furthering the distribution of drugs into the county. The court also heard that although each of these individuals had no criminal history, the danger this volume of drugs posed to the local community merited significant sentences.
Rigoberto Beltran-Garza, 42, Hidalgo, previously received 46 months in federal prison.
On four separate occasions from October 2021 to January 2022, Escamilla entered the United States via the Pharr Port of Entry. He then met with another vehicle in a public parking lot to transfer a black bag containing bricks of cocaine on each occasion.
Law enforcement then stopped the vehicles and identified Medina, Montalvo and Beltran. The three men each admitted they were being paid to transport the cocaine. In total, law enforcement seized 41 bundles, weighing over 44 kilograms with an estimated street value of approximately $500,000.
Escamilla has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility. Medina and Montalvo were permitted to remain on bond and voluntarily surrender at a later date.
Homeland Security Investigations conducted the investigation with the assistance of the Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Lee Fry prosecuted the case.
Legal permanent resident sentenced after attempting to smuggle eight kilograms of cocaineRead the Press Release
McALLEN, Texas – A 53-year-old Mexican man has been sentenced following his conviction of importing cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Juan Mendoza pleaded guilty April 11, 2023.
U.S. District Judge Micaela Alvarez has now ordered Mendoza to serve 62 months in federal prison. He also faces loss of his legal status and possible removal proceedings. At the hearing, the court heard additional evidence that Mendoza had smuggled illegal narcotics on other occasions as well. In handing down the sentence, the court noted Mendoza’s key role in smuggling narcotics into the United States for further distribution.
At the time of his plea, Mendoza admitted he attempted to smuggle approximately eight kilograms of cocaine through the Donna Port of Entry.
On Nov. 6, 2022, Mendoza stated he had no illegal drugs in his vehicle when he arrived at the checkpoint. Authorities referred him to secondary inspection where they found two car batteries in the back seat.
Law enforcement examined the batteries and found them to contain eight packages of a white powdery substance, later determined to be cocaine with an approximate weight of eight kilograms. The drugs had an estimated street value of $100,000.
Mendoza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Theodore Parran III and Daniel Chung prosecuted the case.
Mexican smugglers caught importing $1M in meth sent to prisonRead the Press Release
LAREDO, Texas – Two men have been sentenced to federal prison for importing over 900 pounds of meth, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Noe De Jesus Martinez-Montelongo, 36, Nuevo Leon, Mexico, and Fidel Rodriguez-Saldana, 35, Nuevo Leon, Mexico, Aug. 23, 2023 following a three-day trial.
U.S. District Judge Diana Saldana has now imposed a 235-month term of imprisonment for Martinez-Montelongo and Rodriguez-Saldana received 235 months in prison as well. Both must also serve five years of supervised release following their terms of imprisonment. In handing down the sentence, the court noted the large amount of liquid narcotics that they were attempting to bring into the United States.
On Nov. 28, 2022, Martinez-Montelongo and Rodriguez-Saldana attempted to enter the United States at the Columbia Solidarity port of entry in Laredo, driving a tractor-trailer without a load. Authorities referred them to secondary inspection where a K-9 alerted to the tractor.
Law enforcement conducted a scope and discovered a secret compartment in each diesel tank of the tractor. They were then able to extract some of the liquid which tested positive for meth.
Authorities ultimately seized a total of 413 kilograms (910 pounds) of liquid meth which filled 22 buckets. The estimated wholesale value is approximately $1 million.
At trial, Martinez-Montelongo and Rodriguez-Saldana claimed no knowledge of the liquid. They said they were simply supposed to pick up a legitimate load in Laredo. The jury did not believe their defense and found them guilty as charged.
Both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Michael Makens and Brandon Bowling prosecuted the case.
Kingsville resident gets 300 months for two child pornography convictionsRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old man has been sentenced for sexual exploitation of a minor and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Adrian Vela pleaded guilty Feb. 2, 2023.
U.S. District Judge David S. Morales has now sentenced Vela to 300 and 240 months for the possession and production of child pornography convictions, respectively. They will run concurrently for a total 300-month-term of imprisonment. At the hearing, the court also heard additional information including letters from victims and statements made in court from family members detailing the impact Vela’s conduct has had on them. In handing down the prison terms, the court noted this was a very troubling case, stating “the pain, anguish, damage to the victims does not end… it will always exist.” Vela was further ordered to pay $27,000 in restitution to the victims and will serve 25 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. Vela will also be ordered to register as a sex offender.
Vela came to the attention of law enforcement after they discovered child pornography images and videos uploaded to the internet. The investigation led to Vela. Law enforcement then obtained a search warrant for his home, at which time Vela admitted he possessed and produced images and videos depicting child pornography.
Vela has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation 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.
Victoria resident imprisoned for firing several shots at federal authoritiesRead the Press Release
VICTORIA, Texas – A 37-year-old man has been sentenced for aggravated assault of a federal officer with a deadly weapon, announced U.S. Attorney Alamdar S. Hamdani.
Mark Anthony Garcia Jr. pleaded guilty Sept. 28, 2023.
U.S. District Judge Drew B. Tipton has now ordered Garcia to serve 120 months in federal prison to be immediately followed by three years of supervised release.
On Dec. 1, 2022, at approximately 9 p.m., law enforcement approached the front door of Garcia’s residence and began to knock, loudly announcing their presence. After receiving no response, authorities attempted to force entry into the home through the front door, which was barricaded with a couch.
Law enforcement then broke the front glass window, made entry, announced their presence again and identified themselves as law enforcement with arrest warrants. They then began searching for Garcia inside of the home.
While in the hallway, authorities heard two gunshots coming from a back room and immediately exited the residence. At the time of the shots, there were a total of six law enforcement officer inside the residence. The shots were fired in close proximity to authorities, placing them in imminent danger of serious bodily injury or death.
They began negotiations which spanned several hours, during which Garcia admitted to having a firearm and threatening to use it. The negotiations failed, and Garcia fired at least five more gunshots from the back bedroom.
Authorities then deployed tear gas into the residence, removed Garcia and took him into custody.
He will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth prosecuted the case.
Houstonian imprisoned for attempting to import enough fentanyl to kill 2 million peopleRead the Press Release
LAREDO, Texas - A 49-year-old Houston woman has been ordered to federal prison for conspiring to import fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for less than an hour before convicting Monica Mata Vasquez Aug. 25, 2023, following a two-day trial.
U.S. District Judge Diana Saldana has now ordered Vasquez to serve 136 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court emphasized the significance of this case noting that fentanyl is destroying our community and killing people across the country.
“It takes only a tiny amount of fentanyl to kill a loved one. Vasquez brought in 4.6 kilos of that dangerous drug from Mexico--enough to kill approximately 2 million people,” said Hamdani. “She routinely travelled to Monterrey, Mexico, to pick up narcotics and did it all for money. She prioritized her greed over the well-being of our community. Today’s sentence takes a callous drug transporter off the streets and away from the border and guarantees that Vasquez will no longer profit from the pervasive destruction of fentanyl.”
“Illicit fentanyl is one of the greatest dangers we’re facing as a country,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI) San Antonio. “The conviction and sentencing of Vasquez highlights the strength of our law enforcement partnerships who spend countless hours combating a poison that is harmful to many communities and families. HSI is steadfast in its efforts to disrupt and dismantle transnational criminal organizations and combat the flow of illicit opioids into the United States.”
On March 10, 2023, Vasquez arrived at the Juarez-Lincoln Port of Entry in Laredo and attempted to enter the United States. She had a suspicious travel itinerary which caused authorities to refer her to secondary inspection. There, authorities noticed anomalies in the battery of her car. Law enforcement removed the battery and found four bundles of fentanyl hidden inside it.
The total weight of the fentanyl was 4.6 kilograms, an amount with the approximate strength to kill more than two million people.
The jury also saw text messages from Vasquez’s phone which showed she had been coordinating “trips” with co-conspirators to and from Monterrey, Mexico, into the United States as far back as July 2022. The evidence showed Vasquez had driven to such locations as Alabama and had conversations about the purchase and installation of car batteries.
Further testimony indicated these messages showed Vasquez was part of an agreement to import and traffic narcotics.
The defense attempted to convince the jury that Vasquez did not know the drugs were inside the car. The jury did not believe those claims and found her guilty of engaging in a conspiracy to import fentanyl.
Vasquez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with the assistance of Customs and Border Protection and the Drug Enforcement Administration. Assistant U.S. Attorneys Leslie Cortez and Brian Bajew prosecuted the case.
#OnePillCanKill
Mexican men indicted for forging federal documents related to human smuggling schemeRead the Press Release
LAREDO, Texas – Two Mexican citizens illegally present in the United States have been taken into federal custody on charges relating to conspiracies to forge I-551 stamps as part of human smuggling activities, announced U.S. Attorney Alamdar S. Hamdani.
Juan Francisco Reyna-Robles, 52, is set to make an initial appearance Jan. 11 at 9:40 a.m. before U.S. Magistrate Judge Diana Song Quiroga.
Authorities previously arrested Eugolio Araus Ocampo, 49, who has already made his appearance in federal court.
According to the two-count indictment returned Dec. 12, 2023, Reyna-Robles and Ocampo engaged in conspiracies dating back to 2022 to forge and distribute I-551 stamps as part of a broader human smuggling scheme.
The Department of Homeland Security (DHS) issues “ADIT” or I-551 stamps on foreign passports as temporary evidence of permanent resident status. Such stamps can be used as proof of status for travel, identity verification and employment authorization, according to the charges.
If convicted, they face up to five years for immigration document fraud conspiracy and up to 10 years for human smuggling charges. They could also be ordered to pay hundreds of thousands in fines.
DHS-Office of the Inspector General led the multi-agency investigation with assistance from Customs and Border Protection - Office of Professional Responsibility, Border Patrol, Homeland Security Investigations, Webb County Constable’s Office – 2nd and 4th Precincts and the Laredo Police Department.
Special Assistant U.S. Attorney Terence A. Check Jr. 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.
Laredo dealer set to appear for fentanyl-related deathRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against a 31-year-old resident of Laredo for distributing fentanyl which caused the death of another person, announced U.S. Attorney Alamdar S. Hamdani.
Kevin Ramirez is set to make his initial appearance before U.S. Magistrate Judge Christopher dos Santos at 9:30 a.m. Authorities took him into custody Jan. 5.
The two-count indictment, returned Dec. 27, 2023, alleges Ramirez distributed fentanyl, a schedule II controlled substance, to another individual May 13, 2023. That person subsequently died after using the drug, according to the charges.
Ramirez is also charged with one count of possession with the intent to distribute fentanyl.
If convicted of the distribution resulting in death charge, Ramirez faces a minimum of 20 years and up life in federal prison. The other count carries a possible sentence of up to 20 years. He may also be ordered to pay a possible $1 million maximum fine.
The Drug Enforcement Administration, Laredo Police Department, Homeland Security Investigations, Customs and Border Protection, Border Patrol and Webb County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
This case is being prosecuted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
More information on the dangers of fentanyl can be found on the DEA’s website. #OnePillCanKill
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
South Texas dealer admits to selling fentanyl to teenager resulting in deathRead the Press Release
LAREDO, Texas – A 22-year old resident of Laredo has admitted to providing fentanyl to a 15-year-old, announced U.S. Attorney Alamdar S. Hamdani.
Jose Antonio Carlos III aka Jose Carlos entered a guilty plea to distributing fentanyl resulting in death.
On May 17, 2023, authorities responded to an overdose call at a home in Laredo. Once on scene, they found the victim laying in his bed unresponsive and holding a rolled-up dollar bill with a white powder on it. The white powder later tested positive for fentanyl. A toxicology report and autopsy confirmed the cause of death to be fentanyl toxicity.
The investigation revealed text messages which showed the victim wanting to buy “pase” from Carlos. “Pase” was code for cocaine. Carlos indicated the price and provided an address off Longoria Loop.
On the evening of May 16, 2023, an individual drove the victim to that address. There, a person later identified as Carlos handed the victim a small baggie with a white powder inside it. The driver then dropped off the victim at his home, a home he shared with his aunt.
The next morning, the victim’s aunt heard her nephew’s phone ringing. She thought the victim overslept, so she knocked on his door but heard no response. She then tried to open the door to the victim’s bedroom but was unable to, so she climbed in through one of the bedroom windows.
Once inside the room, she noticed her nephew laying face down on the bed. When she touched him, his body was stiff and cold. Law enforcement responded to the residence and pronounced the victim dead on-scene.
As part of his guilty plea, Carlos admitted to selling “pase” to the victim. He also acknowledged sending a text to the victim May 17, 2023, asking “What’s up was it good or no[?].”
“Carlos’ decision to sell illicit drugs caused the death of a 15-year-old child,” said Hamdani. “Tragically, this case illustrates that no person - regardless of age - is safe from fentanyl’s deadly grip. As long as drug dealers decide to ply their illicit trade, aunts, uncles, fathers and mothers everywhere will continue to discover the cold, lifeless bodies of the children they love and now have lost.”
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Carlos faces a minimum of 20 years and up to life in federal prison. He could also be ordered to pay up to a $1 million fine.
Carlos will remain in custody pending that hearing.
The Drug Enforcement Administration, Homeland Security Investigations, Customs and Border Protection, Border Patrol, Laredo Police Department and Webb County Sheriff’s Office conducted the investigation with assistance from the Webb County Medical Examiner. Assistant U.S. Attorneys Brian Bajew and Leslie Cortez are prosecuting the case.
This case is being prosecuted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
More information on the dangers of fentanyl can be found on the DEA’s website. #OnePillCanKill
Operation leader and 10 others plead guilty in prolific human smuggling and money laundering caseRead the Press Release
LAREDO, Texas – A Texas woman has pleaded guilty for her role in a scheme to illegally transport hundreds of foreign nationals within the United States and conspiracy to launder proceeds of illicit human smuggling, announced U.S. Attorney Alamdar S. Hamdani.
According to court documents, Erminia Serrano Piedra aka Irma and Boss Lady, 32, conspired with at least 14 other members of a human smuggling organization Piedra led that facilitated the unlawful transportation and movement of hundreds of migrants within the United States and harbored and concealed the migrants from detection by law enforcement authorities. The migrants were citizens of Mexico, Guatemala and Colombia, and they or their families paid members of the organization to help them travel illegally to and within the United States.
The organization used drivers to pick up migrants near the U.S.-Mexico border and transport them further into the United States, often harboring the migrants at “stash houses” along the way. Drivers for the human smuggling organization used various methods to transport migrants, including by hiding them in suitcases placed in pickup trucks and by cramming migrants into tractor-trailers, covered beds of pickup trucks, repurposed water tankers and wooden crates strapped to flatbed trailers. The methods the organization used to transport migrants placed their lives in danger as they were frequently held in confined spaces with little ventilation, which became overheated, and were driven at high speeds with no vehicle safety devices. Members of the organization commonly referred to the migrants as “boxes,” “packages” or “pieces.”
Typically, the fee paid to the organization was approximately $8,000, with $3,000 paid upfront to smugglers in Mexico and the remainder paid once the migrants entered the United States. Payments were routed through various accounts all over the United States, and the money from those accounts was then transmitted to the leaders of the organization. According to her plea agreement, Piedra admitted to stating during the course of the conspiracy that she made a lot of money from her involvement in human smuggling and was going to continue making a lot of money in the years to come. She also stated that she had been doing this “for a lifetime already” and was not planning to retire.
Piedra also pleaded guilty to conspiracy to engage in financial transactions designed to conceal the nature, location, source, ownership and control of ill-gotten proceeds of illicit human smuggling. The leaders of the organization recruited and utilized straw recipients to accept human smuggling proceeds in the recipients’ bank accounts and then transferred the proceeds to the leaders under the pretense of work payments. The others also incorporated businesses and opened business accounts to transfer the human smuggling proceeds. Additionally, co-conspirators recruited individuals in the construction industry who accepted human smuggling proceeds in the form of cash in exchange for checks from the recruited individuals’ business bank accounts.
The superseding indictment in this case also notices the criminal forfeiture of two properties belonging to Piedra with current estimated values of $2,275,000 and $515,000 that were purchased with the illicit proceeds of human smuggling. Serrano is also agreeing to a money judgment of $942,537.00.
Piedra is scheduled to be sentenced April 10 and faces a maximum of 20 years in prison.
Ten others previously pleaded guilty for their roles in the scheme. Kevin Daniel Nuber aka Captain, 42, and Laura Nuber aka Barbie, 41, pleaded guilty to conspiracy to transport aliens, placing in jeopardy the life of any person and conspiracy to harbor aliens for the purpose of commercial advantage and private financial gain. Christine Dangler aka Tinkerbell, 46, Lloyd Bexley, 53, Jeremy Dickens, 47, Juan Manuel Hernandez Cordova aka Tio, 46, David Scott Tallant, 54, Katie Ann Garcia aka Guera, 40, and Abraham Geber Lopez, 28, pleaded guilty to conspiracy to transport and move aliens, placing in jeopardy the life of any person. Oliveria Campuzano Piedra, 54, pleaded guilty to conspiracy to harbor an alien for profit. The co-conspirators are awaiting sentencing.
The indictments and convictions of these defendants are the result of the coordinated efforts of Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS) to strengthen the Justice Department’s 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 U.S. Attorneys’ Offices along the southwest border, including the Southern and Western District of Texas, Districts of New Mexico, Arizona and Southern District of California. Numerous components of the Justice Department’s Criminal Division that are part of JTFA also provided dedicated support which the Human Rights and Special Prosecutions Section (HRSP) led. Also supporting the efforts are Office of Prosecutorial Development, Assistance and Training, Narcotic and Dangerous Drug Section, Money Laundering and Asset Recovery Section (MLARS), Office of Enforcement Operations, Office of International Affairs and Violent Crime and Racketeering Section.
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 260 domestic and international arrests of leaders, organizers and significant facilitators of human smuggling; over 180 convictions; significant jail sentences imposed; and substantial seizures and forfeitures of assets and contraband – including hundreds of thousands of dollars in cash, property, vehicles, firearms, ammunition and drugs.
HSI Laredo, along with Border Patrol - Laredo Sector and DHS Office of the Inspector General led U.S. investigative efforts and received substantial assistance from Homeland Security Investigations (HSI) offices in Austin, San Antonio, Waco and Corpus Christi, New Orleans, Louisiana, Gulfport, Mississippi, Mobile, Alabama, West Palm Beach, Florida, and its Human Smuggling Unit in Washington, D.C., along with Customs and Border Protection’s National Targeting Center; U.S. Marshals Service; Immigration and Customs Enforcement’s Enforcement and Removal Operations - Austin; Treasury Executive Office for Asset Forfeiture; Police Departments in Laredo, Killeen, Elgin, and Round Rock as well as Wiggins, Missouri, and Bogalusa, Louisiana; Webb County Constable’s Office; Webb County District Attorney’s Office; Sheriff’s Offices in Webb, Bastrop and Caldwell Counties, Harrison, George and Stone Counties, Mississippi, Mobile County, Alabama, and Jefferson and Washington Parishes in Louisiana; Mississippi Bureau of Narcotics; and Louisiana State Police.
Assistant U.S. Attorney and JTFA Detailee for the Southern District of Texas Jennifer Day, HRSP Trial Attorneys Christian Levesque and Angela Buckner and MLARS Trial Attorney Daria Andryushchenko are prosecuting the case with substantial assistance from MLARS Financial Investigator Kelly O’Mara and the Department of Justice’s Electronic Surveillance Unit of the Office of Enforcement Operations.
HRSP Trial Attorney Erin Cox previously provided significant assistance in this case.
Siblings convicted of purchasing 7,000 rounds of ammunition for transport across the borderRead the Press Release
LAREDO, Texas – Three siblings have admitted to buying, transporting and concealing ammunition intended to be smuggled into Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Rolando Herrera, 26, pleaded guilty this morning in addition to another charge of conspiracy to smuggle ammunition with intent to promote a felony. His sisters, Ashley Herrera, 22, and Yamileth Herrera, 21, entered their guilty pleas Dec. 12, 2023. All are U.S. citizens and maintain residences in Laredo and in Nuevo Laredo, Tamaulipas, Mexico.
Between May 16, 2023, through May 24, 2023, the siblings placed orders at a local sporting goods store for 7,000 rounds of 5.56-millimeter ammunition. Ashley placed the first order of 3,000 rounds which she and Rolando picked up at the store. Ashley later placed a second order in another person’s name for 3,000 rounds who picked up that ammunition and delivered it to the Herreras’ parents’ home. Yamileth later ordered and picked up 1,000 rounds of ammunition.
Rolando admitted he intended to smuggle the ammunition to persons in Mexico, provided the funds for all purchases and requested his sisters order the ammunition for him.
Ashley transported cartons of 6,000 rounds of ammunition to her parents’ home where she and Yamileth moved them into a bedroom where it remained concealed until Rolando would pick it up to smuggle to Mexico.
Law enforcement intercepted Yamileth Herrera who was in possession of 1,000 rounds she had just purchased.
Authorities collected a total of 7,000 rounds of ammunition from the Herrera sibling’s smuggling operation.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing in April. At that time, they each face up to 10 years in federal prison and a possible $250,000 maximum fine. Rolando also faces up to 15 years for the additional charge of conspiring to smuggle ammunition out of the United States to promote a felony.
All three have been permitted to remain on bond pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Commerce and Bureau of Industry and Security’s Office of Export Enforcement conducted the investigation with the assistance of Homeland Security Investigations and the Laredo Police Department.
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 resident admits to impersonating licensed nurseRead the Press Release
LAREDO– A 35-year-old woman has pleaded guilty to false statements related to health care matters, announced U.S. Attorney Alamdar S. Hamdani.
Nora Nely Avila admitted that from January 2017 through December 2019, she impersonated a nurse and performed work she was not licensed to do at multiple hospitals and home health companies in the Laredo area.
These health care providers hired Avila after she fraudulently presented a nursing license of another individual. The patients and health care providers were part of the federally funded Medicaid and Medicare programs.
Avila also obtained employment as nurse trainer in the federally funded Job Corps program and was assigned to train future nurses.
In total, Avila received $52,241.66 in compensation for working as a licensed nurse when she was not licensed to do so.
U.S. District Judge Marina Garcia Marmolejo accepted the plea and has set sentencing for April 9. At that hearing, Avila faces up to five years in federal prison and a possible $250,000 fine.
Avila was permitted to remain on bond pending sentencing.
FBI, Department of Health and Human Services – Office of the Inspector General (OIG), Department of Labor – OIG, Homeland Security Investigations and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.
Former federal officer receives more charges for alien smugglingRead the Press Release
LAREDO, Texas – A 36-year-old Customs and Border Protection (CBP) officer previously charged with bribery and drug trafficking has now also been indicted for illegally smuggling four undocumented aliens into the United States, announced U.S. Attorney Alamdar S. Hamdani.
Emanuel Celedon remains in custody and is set to make his initial appearance on the new charges before U.S. Magistrate Judge Christopher dos Santos at 10 a.m., at which time the court will also hold his detention hearing. Two others - Homero Romero-Hernandez, 30, and Jose Osvaldo Zapata Vasquez, 24, both Mexican nationals illegally residing in the United States, are also expected to make appearances. The final person charged - Beatris Martinez, 20, Cotulla, is set for her initial appearance Jan. 4, 2024 at 9:40 a.m. before Judge dos Santos.
Celedon had previously worked at the Port of Entry (POE) in Laredo at the time of the offenses.
The superseding indictment, returned Dec. 27, charges Celedon and Martinez with four counts of bringing an undocumented alien to the United States on two separate dates in September and November. Zapata and Romero are charged similarly in three counts.
Celedon was previously indicted Nov. 28 for two counts of bribery and two counts of attempted importation of cocaine. Those charges allege that, on separate two occasions in October, Celedon accepted U.S. currency in exchange for allowing an individual to transport a substance he believed to be several kilograms of cocaine into the United States from Mexico through the Laredo POE without inspection.
If convicted of the new human smuggling charges, he faces up 40 years in federal prison. The previous bribery charges carry up to 15 years in prison each and a possible $250,000 maximum fine. A conviction on the cocaine importation charges carry a maximum sentence of up to 40 years and a possible maximum $5 million fine.
The Department of Homeland Security - Office of Inspector General, Drug Enforcement Administration, Homeland Security Investigations and CBP- Office of Professional Responsibility conducted the investigation with assistance from the Texas Department of Public Safety, Border Patrol, Webb County Constable Precinct 2 and CBP Laredo Joint Forensic Center. Assistant U.S. Attorneys Richard Bennett and Jennifer Day are prosecuting the case.
This investigation is related to an Organized Crime Drug Enforcement Task Forces (OCDETF) case. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
This case is also supported by Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland created JTFA in June 2021 in partnership with the 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 260 domestic and international arrests of leaders, organizers and significant facilitators of human smuggling; more than 170 convictions; significant jail sentences imposed; and substantial asset forfeiture.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former NASA employee and husband charged in mortgage fraud schemeRead the Press Release
HOUSTON – A Missouri City couple has been indicted for orchestrating a fraudulent financing and refinancing mortgage loan scheme, announced U.S. Attorney Alamdar S. Hamdani.
Noreen Khan aka Noreen Khan-Mayberry, 50, and her husband Christopher Mayberry, 51, surrendered to federal authorities this morning. They are expected to make their initial appearances before U.S. Magistrate Judge Yvonne Ho at 2 p.m.
According to the indictment, returned Dec. 12, both are charged with one count of conspiracy to make false statements to mortgage loan businesses.
Beginning in 2016, Mayberry and Khan, while still employed at NASA, allegedly took out significant personal loans to fund the purchase of their luxury home before quickly defaulting on those loans.
According to the charges, the couple allegedly attempted to eliminate and dispute the debts, claiming to be victims of identity theft. Khan allegedly filed a false police report, submitted a false report to the Federal Trade Commission and sent letters to the credit bureaus in order to have the loans removed from her credit.
As part of the scheme, the couple allegedly signed three separate loan agreements with mortgage lenders related to the financing of their home from 2017 to 2021.
As part of the loan application process, the couple provided false employment information and fake documents which included pay stubs, tax forms and account statements to lenders, according to the charges.
If convicted, they face up to five years in federal prison and a possible $250,000 maximum fine in addition to the possible forfeiture of their luxury home.
NASA’s Office of Inspector General-Office of Investigations conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Mexican man imprisoned for selling drugs out of Houston barber shopRead the Press Release
HOUSTON – A 45-year-old Mexican citizen illegally residing in Houston has been sentenced following his conviction of possession with intent to distribute nearly 50 kilograms of various narcotics, announced U.S. Attorney Alamdar S. Hamdani.
Merbin Leodan Inestroza-Perez pleaded guilty Oct. 6.
U.S. District Judge David Hittner has now ordered Inestroza-Perez to serve 235 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, Judge Hittner noted the large amount of drugs and questioned his family members on their knowledge of the extent of the quantity of narcotics. In handing down the sentence, the court noted the negative impact drugs have had on the community. The court emphasized that authorities seized 500 grams of fentanyl from Inestroza-Perez and its potential deadly effects.
The investigation revealed Inestroza-Perez was distributing meth out of a local barber shop in Houston.
On March 25, 2022, law enforcement conducted a controlled delivery of 111 grams of meth from him and subsequently conducted a search of his residence. At that time, authorities discovered 30 kilograms of cocaine, nearly 18 kilograms of meth, over 500 grams of fentanyl and eight firearms. The total amount of the narcotics had an estimated street value of $850,000.
The investigation further revealed Inestroza-Perez was in league with individuals located in South Texas. The other conspirators have since been convicted and are pending sentencing.
Inestroza-Perez 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 Texas Department of Public Safety and Montgomery County Sheriff’s Office
Assistant U.S. Attorney Jimmy Leo prosecuted the case.
United Memorial Medical Center to pay $2M plus additional payments for allegedly causing false claims related to excessive cost outlier payments and double billing for Covid-19 testsRead the Press Release
HOUSTON – Doctor’s Hospital 1997 L.P. dba United Memorial Medical Center LLC (UMMC) has agreed to pay $2 million and to make additional contingent payments to resolve alleged False Claims Act violations.
UMMC is an entity that formerly operated hospitals in the Houston area. They allegedly claimed excessive cost outlier payments from government health care programs and double billed the government for COVID-19 tests that were also billed either to the State of Texas or the City of Houston.
According to the agreement between UMMC and the United States, the settlement funds will be paid by one of UMMC’s principals, Ravishanker Mallapuram, and UMMC has guaranteed the payment of those funds.
“This over $2 million settlement is significant,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “We depend upon medical providers to be good stewards of a community’s healthcare services and of the federally funded programs that pay for those services. The case alleges UMMC made millions by overbilling those health care programs and intentionally double billing for COVID-19 testing. Instead of returning those monies to America’s taxpayers, they allegedly pocketed the money for themselves. Finding the wrongdoing and lost monies in these types of cases involves complexities akin to playing three-dimensional chess, but know this, the SDTX will not stop in its quest for justice until it can claim checkmate.”
“Hospitals and other providers who participate in federal health care programs have an obligation to the taxpayers to ensure that they are billing appropriately,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Department of Justice’s Civil Division. “We will hold accountable those who knowingly overbill or double bill for the medical services they provide to federal beneficiaries.”
In addition to its standard payment system, Medicare and Tricare provide supplemental reimbursement to hospitals called “cost outlier” payments in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals possess the incentive to treat inpatients whose care requires unusually high costs. This settlement resolves allegations that UMMC submitted claims for cost outlier payments by rapidly increasing its charges for inpatient care and underreporting its charges on Medicare cost reports, thereby preventing the government health care programs from adjusting those charges so that they would reasonably reflect UMMC’s actual costs. The settlement also resolves allegations that UMMC concealed and improperly avoided its obligation to reimburse the federal health care programs for any excessive outlier payments its hospitals received.
In addition, UMMC has agreed to settle allegations that it submitted claims to the Health Resources and Services Administration’s Uninsured Program for COVID-19 testing services, despite being reimbursed for those same services by either the State of Texas or the City of Houston.
“Hospitals and executives who run them should prioritize accurate, lawful billing of Medicare and other taxpayer-funded health care programs at all times,” said Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services - Office of Inspector General (HHS-OIG). “This practice is especially imperative, however, when the world is responding to a public health crisis. At HHS-OIG, it is our fundamental responsibility to, along with our law enforcement partners, safeguard federally funded health care programs and American taxpayer monies.”
“The Department of Defense (DOD) Office of Inspector General's Defense Criminal Investigative Service (DCIS) is committed to rooting out fraud schemes that waste valuable taxpayer resources intended for the healthcare of our service members, military retirees and their families,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS, along with our law enforcement partners, will aggressively pursue and hold those accountable who took advantage of the pandemic for profit at the expense of DOD's taxpayer funded healthcare program, known as TRICARE.”
“The FBI and its partners will relentlessly pursue bad actors that participate in nefarious double billing at the cost of the American taxpayer and our health care system,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response and Services Branch. “Violations of the False Claims Act will not be tolerated. If you do not follow the law, you will face the consequences of your noncompliance.”
The settlement resolves a lawsuit originally brought by Ryan Griffin, a former employee of UMMC, under the qui tam provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Under the settlement announced today, Griffin will receive $300,000.
This settlement was the result of a coordinated effort by the Justice Department's Civil Division; the U.S. Attorney’s Office for the Southern District of Texas; HHS, Office of Counsel to the Inspector General and Office of Investigations; DCIS and the FBI.
The lawsuit resolved by this settlement is captioned United States, et al., ex rel. Ryan Griffin v. Mediscope Global Services Pvt Ltd., et al., 3:21-cv-183 (S.D. TX.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Resident alien sent to prison for conspiracy to distribute meth and fleeing while out on bondRead the Press Release
CORPUS CHRISTI, Texas – A 54-year-old legal permanent resident of Mexico residing in San Antonio has been sentenced for possession with intent to distribute meth and failure to appear, announced U.S. Attorney Alamdar S. Hamdani.
Abel Avendano pleaded guilty for failing to appear and the underlying drug offense Feb. 1, 2022, and Oct. 27, 2022, respectively.
U.S. District Judge Nelva Gonzales Ramos has now ordered Avendano to serve 158 months in federal prison for the possession with intent to distribute meth. He also received 10 months for the failure to appear which must be served consecutively. Not a U.S. citizen, Avendano is expected to face removal proceedings following his total 168-month-term of imprisonment. In handing down the sentence, the court noted his role in the conspiracy and the amount of narcotics involved.
On June 19, 2020, Avendano approached the Falfurrias Border Patrol (BP) checkpoint. Authorities became suspicious when the driver of the vehicle appeared nervous. At secondary inspection, they found four kilograms of meth and discovered the vehicle had been stolen.
The investigation revealed a seizure of five kilograms of meth concealed in the same manner at the Pharr Port of Entry May 31, 2020. At that time, those arrested identified Avendano as the individual who hired them to transport the narcotics from Mexico.
The court permitted Avendano to be released on bond after his arrest pending conditions. He subsequently cut off his ankle monitor and fled.
Avendano was been in custody since his re-arrest where he will remain 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 Customs and Border Protection. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Repeat smuggler imprisoned for attempting to transport more than 560 aliensRead the Press Release
CORPUS CHRISTI, Texas – A 25-year-old Donna man has been sentenced for conspiring to transport illegal aliens into the United States, announced U.S. Attorney Alamdar S. Hamdani.
Miguel Angel Hernandez pleaded guilty April 26.
U.S. District Judge Nelva Gonzales Ramos has now ordered Hernandez to serve 108 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Hernandez’ violent history, including a conviction for robbery after he and others held a couple and their 7-year-old daughter at gun point while they robbed their fireworks stand. In handing down the sentence, the court noted there was a “huge number” of aliens involved in this case. Further, when Hernandez tried to say he wasn’t responsible for the age of the aliens or the conditions in which they were transported, Judge Ramos made it clear that as part of the conspiracy, he was responsible for the foreseeable actions of the others and he would be held accountable for that.
In July 2021, authorities discovered 67 undocumented aliens in the back of a tractor trailer. This began an almost two-year investigation into an alien smuggling organization who recruited drivers on social media and then failed to pay them for smuggling illegal aliens through Border Patrol checkpoints.
During the investigation, law enforcement discovered Hernandez was responsible for coordinating the smuggling of countless aliens, with at least 560 apprehended in failed attempts.
The apprehended individuals included men, women and children who were often smuggled in dangerous and inhumane ways. Due to extreme temperatures, those smuggled sometimes needed immediate medical treatment for severe dehydration.
In one of these cases, which occurred Sept. 11, 2022, authorities discovered 115 undocumented aliens in the back of a tractor trailer during a failed smuggling attempt.
“This individual oversaw a transnational criminal organization responsible for illegally smuggling thousands of noncitizens into the U.S. in the back of tractor trailers through the deadly Texas heat with no regard for their health and safety,” said Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) Houston. “Today’s sentencing is the culmination of years of hard work by HSI Corpus Christi, HSI McAllen and our law enforcement partners in South Texas to successfully dismantle this human smuggling organization and restore some integrity to our nation’s immigration system.”
Hernandez 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 Barbara J. De Peña prosecuted the case.
Justice Department and Consumer Financial Protection Bureau sue Texas-based developer and lender Colony Ridge for bait-and-switch land sales and predatory financingRead the Press Release
HOUSTON – The Justice Department and Consumer Financial Protection Bureau (CFPB) have sued Colony Ridge for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans.
“Today’s complaint alleges that Colony Ridge targeted Hispanic consumers with predatory loans, misled borrowers about the water, sewer and electrical infrastructure on its lots, and exploited language barriers by conducting most of its marketing in Spanish while offering important transaction documents only in English,” said Attorney General Merrick B. Garland. “Discrimination in lending harms families and neighborhoods for generations; it is wrong and has no place in our country. That is why I launched the Department’s Combating Redlining Initiative more than two years ago and why we remain steadfast in our commitment to continue this work.”
“Using 21st century social-media applications to target and mislead consumers, Colony Ridge set out to exploit something as old as America — an immigrant’s dream of owning a home,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As alleged in the complaint, Colony Ridge’s exploitative practice began with misleading advertising on platforms like TikTok and often ended with families facing economic ruin, no home, and shattered dreams. The SDTX, joined by our partners at the Justice Department’s Civil Rights Division and the CFPB, filed the complaint as a promise to work tirelessly to bring justice for the Hispanic families who fell prey to Colony Ridge’s alleged predatory lending practices and to send out a warning to the vulnerable: beware of lenders who use promises of easy financing to steal both nest-eggs and dreams.”
The lawsuit filed in federal district court alleges Colony Ridge sells unsuspecting families flood-prone land without water, sewer or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. Roughly one-in-four Colony Ridge loans ends in foreclosure, after which the company repurchases the properties and sells them to new borrowers. The Justice Department and CFPB are seeking redress for borrowers Colony Ridge harmed and an immediate end to its illegal practices.
“Colony Ridge promised the American dream, but we allege that in reality, it has delivered a nightmare for thousands of hardworking Hispanic families who hoped to build their homes in the Terrenos Houston community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit demonstrates our commitment to holding accountable those in the housing and financial industry who intentionally target and exploit homebuyers because they are Hispanic or don’t speak English well. Through our Combating Redlining Initiative, the Justice Department will aggressively continue to dismantle predatory, deceptive, and unfair lending practices to safeguard the rights of all who seek to buy a home.”
“The lawsuit filed in federal court by the CFPB and the Justice Department charges Colony Ridge with a slew of illegal misconduct and seeks to stop this set-up-to-fail scheme that has led thousands of families to lose their dreams of homeownership,” said CFPB Director Rohit Chopra. “Our investigation uncovered that Colony Ridge is baiting borrowers with lies, saddling families with predatory loans for homesites that the company knows have repeatedly flooded with raw sewage and lacked basic utility infrastructure.”
The lawsuit names as defendants three Texas-based Colony Ridge affiliate companies as well as Loan Originator Services, a nonbank mortgage company licensed to originate loans in Texas. Colony Ridge has developed more than 40,000 lots spread across an unincorporated area of Liberty County, approximately 30 miles northeast of Houston. Colony Ridge markets these subdivisions using the names “Terrenos Houston” and “Terrenos Santa Fe.”
According to the complaint, Colony Ridge targets Spanish-speaking borrowers. It advertises almost exclusively in Spanish, often in TikTok or other social media posts featuring, for example, national flags and regional music from Latin America. In these advertisements, Colony Ridge promises consumers the dream of homeownership with its own seller financing: an easy-to-obtain loan product that requires no credit check and only a small deposit.
The complaint further alleges Colony Ridge has lured tens of thousands of vulnerable Hispanic consumers into their predatory loan products. Foreclosure and property deed records from September 2019 through September 2022 show that Colony Ridge initiated foreclosures on at least 30% of seller-financed lots within just three years of the purchase date, with most loan failures occurring even sooner. Records also confirm that Colony Ridge accounted for more than 92% of all foreclosures recorded in Liberty County between 2017 and 2022.
Specifically, the complaint filed today alleges that Colony Ridge:
- Misleads borrowers about infrastructure on the lots it sells: Colony Ridge has falsely represented that lots in the Terrenos Houston subdivisions were sold with water, sewer and electrical infrastructure already in place. The complaint cites numerous advertisements including TikTok videos where the company makes claims like “Terrenos Houston tiene todos los servicios de ciudad por cada terreno” (“Terrenos Houston has all city services for each lot”). It is only after applicants pay a non-refundable deposit that Colony Ridge discloses the properties may not provide those services and makes that disclosure only in English.
- Sells lots that flood with rain and raw sewage: The complaint alleges that Colony Ridge employees fail to inform borrowers of flood risk when lots have repeatedly flooded in the past or falsely tells them the lots have not flooded. In fact, in parts of the Terrenos Houston subdivision, rain causes significant flooding causing raw sewage to run through or around borrowers’ property and damaging their personal belongings.
- Targets Hispanic consumers with predatory loans: Through direct-to-consumer marketing on websites, social media engagement, and telemarketing, Colony Ridge targets Hispanic consumers. Colony Ridge then exploits language barriers during its sales process and uses high-pressure sales tactics to push borrowers to obtain their loan product quickly. The loans have exorbitant interest rates. Between 2017 and 2021, interest rates on Colony Ridge’s loans ranged from between 10.9% to 12.9%, while a standard 20-year fixed rate loan averaged 2.35% to 4.05% during the same timeframe. And in extending the loan, Colony Ridge and Loan Originator Services did not collect information needed to determine if applicants can afford the loan.
- Churns through borrowers in a cycle of foreclosure: When families fall behind on payments and enter foreclosure, it allows Colony Ridge to “flip” the properties by repurchasing and reselling them, often at higher prices. Foreclosure and property deed records show that Colony Ridge flipped at least 40% of all the properties it sold between September 2019 and September 2022, selling approximately 8,237 properties twice, 3,267 properties three times and 2,067 properties four or more times in three years.
- Exploits language barriers at borrowers’ expense: While Colony Ridge conducts most of its marketing activities in Spanish, when it comes to the actual transaction it offers important documents only in English. Failing to offer borrowers accurate translations of contracts, deeds and other documents in the language in which it conducts the sales and exploiting borrowers’ limited English proficiency violates federal law.
Enforcement Action
The complaint alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Fair Housing Act (FHA). Under the FHA, the Justice Department has the authority to take enforcement action against real estate companies, lending institutions and other entities whose practices discriminate in residential real estate-related transactions, the availability of housing and housing-related services. The complaint also alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B. Both the Justice Department and CFPB have the authority to enforce ECOA. Additionally, the complaint alleges defendants’ deceptive acts and practices violate the Consumer Financial Protection Act of 2010 (CFPA) and the Interstate Land Sales Full Disclosure Act (ILSA) and its implementing regulations, Regulation K and Regulation J, all of which CFPB enforced.
The complaint seeks to stop Colony Ridge’s alleged unlawful conduct, provide relief for affected consumers and impose a civil penalty payable to the CFPB victims relief fund. If the defendants are found liable, the amount of any restitution will be determined in the litigation in federal court.
Anyone who believes they have been harmed by the practices of Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC and Loan Originator Services LLC should call the Justice Department’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, then 3 for fair lending and then 1 for Colony Ridge Lawsuit to leave a message. For the Spanish Hotline, callers should press 2 for Spanish, then 3 for fair lending and then 1 for Colony Ridge Lawsuit to leave a message. Individuals can also send an email to [email protected].
This lawsuit is a part of the Justice Department’s Combating Redlining Initiative. Redlining is the illegal practice where lenders deprive communities of color from equal access to loans and lending opportunities. Reverse redlining occurs when lenders target communities of color with inflated interest rates and/or other unjust lending terms. Both practices prevent communities of color from achieving sustainable homeownership and both deny these communities the opportunity to build wealth.
The Combating Redlining Initiative is the Justice Department’s most aggressive and coordinated enforcement effort to address all forms of redlining. Since 2021, the Justice Department’s Combating Redlining Initiative has secured over $100 million and 10 settlement agreements with banks and mortgage lending institutions to provide credit opportunities to communities of color in Houston; Memphis, Tennessee; Philadelphia; Camden, New Jersey; Wilmington, Delaware; Newark, New Jersey; Los Angeles; Columbus, Ohio; Tulsa, Oklahoma; Rhode Island; and Jacksonville, Florida. The Department has partnered with U.S. Attorneys’ Offices, federal financial regulatory agencies, including the CFPB and state Attorneys General offices to enforce federal fair lending laws that prohibit redlining. This lawsuit is the first reverse redlining action under the initiative.
Read today’s complaint.
The Justice Department’s website has resources about fair lending. The Department accepts complaints of discrimination at www.civilrights.justice.gov/. Fair housing and lending discrimination complaints may also be sent to [email protected].
CFPB’s website has resources about credit discrimination and mortgages. Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to [email protected].
Justice Department and Consumer Financial Protection Bureau Sue Texas-Based Developer and Lender Colony Ridge for Bait-and-Switch Land Sales and Predatory FinancingRead the Press Release
The Justice Department and Consumer Financial Protection Bureau (CFPB) today sued Colony Ridge, a Texas-based developer and lender, for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans.
“Today’s complaint alleges that Colony Ridge targeted Hispanic consumers with predatory loans, misled borrowers about the water, sewer, and electrical infrastructure on its lots, and exploited language barriers by conducting most of its marketing in Spanish while offering important transaction documents only in English,” said Attorney General Merrick B. Garland. “Discrimination in lending harms families and neighborhoods for generations, it is wrong, and it has no place in our country. That is why I launched the Department’s Combating Redlining Initiative more than two years ago and why we remain steadfast in our commitment to continue this work.”
The lawsuit filed in federal district court alleges Colony Ridge sells unsuspecting families flood-prone land without water, sewer, or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. Roughly one-in-four Colony Ridge loans ends in foreclosure, after which the company repurchases the properties and sells them to new borrowers. The Justice Department and CFPB are seeking redress for borrowers harmed by Colony Ridge and an immediate end to its illegal practices.
“Colony Ridge promised the American dream, but we allege that in reality, it has delivered a nightmare for thousands of hardworking Hispanic families who hoped to build their homes in the Terrenos Houston community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit demonstrates our commitment to holding accountable those in the housing and financial industry who intentionally target and exploit homebuyers because they are Hispanic or don’t speak English well. Through our Combating Redlining Initiative, the Justice Department will aggressively continue to dismantle predatory, deceptive, and unfair lending practices to safeguard the rights of all who seek to buy a home.”
“The lawsuit filed in federal court by the CFPB and the Justice Department charges Colony Ridge with a slew of illegal misconduct and seeks to stop this set-up-to-fail scheme that has led thousands of families to lose their dreams of homeownership,” said CFPB Director Rohit Chopra. “Our investigation uncovered that Colony Ridge is baiting borrowers with lies, saddling families with predatory loans for homesites that the company knows have repeatedly flooded with raw sewage and lacked basic utility infrastructure.”
“Using 21st century social-media applications to target and mislead consumers, Colony Ridge set out to exploit something as old as America — an immigrant’s dream of owning a home,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As alleged in the complaint, Colony Ridge’s exploitative practice began with misleading advertising on platforms like TikTok and often ended with families facing economic ruin, no home, and shattered dreams. The SDTX, joined by our partners at the Justice Department’s Civil Rights Division and the CFPB, filed the complaint as a promise to work tirelessly to bring justice for the Hispanic families who fell prey to Colony Ridge’s alleged predatory lending practices and to send out a warning to the vulnerable: beware of lenders who use promises of easy financing to steal both nest-eggs and dreams.”
The lawsuit names as defendants three Texas-based Colony Ridge affiliate companies, as well as Loan Originator Services, a nonbank mortgage company licensed to originate loans in Texas. Colony Ridge has developed more than 40,000 lots spread across an unincorporated area of Liberty County, Texas, approximately 30 miles northeast of Houston. Colony Ridge markets these subdivisions using the names “Terrenos Houston” and “Terrenos Santa Fe.”
According to the complaint, Colony Ridge targets Spanish-speaking borrowers: it advertises almost exclusively in Spanish, often in TikTok or other social media posts featuring, for example, national flags and regional music from Latin America. In these advertisements, Colony Ridge promises consumers the dream of homeownership with its own seller financing: an easy-to-obtain loan product that requires no credit check and only a small deposit.
The complaint further alleges that Colony Ridge has lured tens of thousands of vulnerable Hispanic consumers into their predatory loan products. Foreclosure and property deed records from September 2019 through September 2022 show that Colony Ridge initiated foreclosures on at least 30% of seller-financed lots within just three years of the purchase date, with most loan failures occurring even sooner. Records also confirm that Colony Ridge accounted for more than 92% of all foreclosures recorded in Liberty County between 2017 and 2022.
Specifically, the complaint filed today alleges that Colony Ridge:
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Misleads borrowers about infrastructure on the lots it sells: Colony Ridge has falsely represented that lots in the Terrenos Houston subdivisions were sold with water, sewer, and electrical infrastructure already in place. The complaint cites numerous advertisements, including TikTok videos where the company makes claims like “Terrenos Houston tiene todos los servicios de ciudad por cada terreno” (“Terrenos Houston has all city services for each lot”). It is only after applicants pay a non-refundable deposit that Colony Ridge discloses the properties may not provide those services and makes that disclosure only in English.
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Sells lots that flood with rain and raw sewage: The complaint alleges that Colony Ridge employees fail to inform borrowers of flood risk when lots have repeatedly flooded in the past, or falsely tells them the lots have not flooded. In fact, in parts of the Terrenos Houston subdivision, rain causes significant flooding, causing raw sewage to run through or around borrowers’ property, and damaging their personal belongings.
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Targets Hispanic consumers with predatory loans: Through direct-to-consumer marketing on websites, social media engagement, and telemarketing, Colony Ridge targets Hispanic consumers. Colony Ridge then exploits language barriers during its sales process and uses high-pressure sales tactics to push borrowers to obtain their loan product quickly. The loans have exorbitant interest rates. Between 2017 and 2021, interest rates on Colony Ridge’s loans ranged from between 10.9% to 12.9%, while a standard 20-year fixed rate loan averaged 2.35% to 4.05% during the same timeframe. And in extending the loan, Colony Ridge and Loan Originator Services did not collect information needed to determine if applicants can afford the loan.
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Churns through borrowers in a cycle of foreclosure: When families fall behind on payments and enter foreclosure, it allows Colony Ridge to “flip” the properties by repurchasing and reselling them, often at higher prices. Foreclosure and property deed records show that Colony Ridge flipped at least 40% of all the properties it sold between September 2019 and September 2022, selling approximately 8,237 properties twice, 3,267 properties three times, and 2,067 properties four or more times in three years.
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Exploits language barriers at borrowers’ expense: While Colony Ridge conducts most of its marketing activities in Spanish, when it comes to the actual transaction it offers important documents only in English. Failing to offer borrowers accurate translations of contracts, deeds, and other documents in the language in which it conducts the sales and exploiting borrowers’ limited English proficiency violates federal law.
Enforcement Action
The complaint alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Fair Housing Act (FHA). Under the FHA, the Justice Department has the authority to take enforcement action against real estate companies, lending institutions, and other entities whose practices discriminate in residential real estate-related transactions, the availability of housing, and housing-related services. The complaint also alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Equal Credit Opportunity Act (ECOA), and its implementing regulation, Regulation B. Both the Justice Department and CFPB have the authority to enforce ECOA. Additionally, the complaint alleges defendants’ deceptive acts and practices violate the Consumer Financial Protection Act of 2010 (CFPA) and the Interstate Land Sales Full Disclosure Act (ILSA) and its implementing regulations, Regulation K and Regulation J, all of which is enforced by CFPB.
The complaint seeks to stop Colony Ridge’s alleged unlawful conduct, provide relief for affected consumers, and impose a civil penalty payable to the CFPB victims relief fund. If the defendants are found liable, the amount of any restitution will be determined in the litigation in federal court.
Anyone who believes they have been harmed by the practices of Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC, and Loan Originator Services LLC should call the Justice Department’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, then 3 for fair lending, and then 1 for Colony Ridge Lawsuit to leave a message. For the Spanish Hotline, callers should press 2 for Spanish, then 3 for fair lending, and then 1 for Colony Ridge Lawsuit to leave a message. Individuals can also send an email to [email protected].
This lawsuit is a part of the Justice Department’s Combating Redlining Initiative. Redlining is the illegal practice where lenders deprive communities of color from equal access to loans and lending opportunities. Reverse redlining occurs when lenders target communities of color with inflated interest rates and/or other unjust lending terms. Both practices prevent communities of color from achieving sustainable homeownership and both deny these communities the opportunity to build wealth.
The Combating Redlining Initiative is the Justice Department’s most aggressive and coordinated enforcement effort to address all forms of redlining. Since 2021, the Justice Department’s Combating Redlining Initiative has secured over $100 million and 10 settlement agreements with banks and mortgage lending institutions to provide credit opportunities to communities of color in Houston; Memphis, Tennessee; Philadelphia; Camden, New Jersey; Wilmington, Delaware; Newark, New Jersey; Los Angeles; Columbus, Ohio; Tulsa, Oklahoma; Rhode Island; and Jacksonville, Florida. The Department has partnered with U.S. Attorneys’ Offices, federal financial regulatory agencies, including the CFPB, and state Attorneys General offices to enforce federal fair lending laws that prohibit redlining. This lawsuit is the first reverse redlining action under the initiative.
The Justice Department’s website has resources about fair lending. The Department accepts complaints of discrimination at www.civilrights.justice.gov/. Fair housing and lending discrimination complaints may also be sent to [email protected].
CFPB’s website has resources about credit discrimination and mortgages. Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to [email protected].
colony_ridge_complaint.pdf-
Departamento de Justicia y Oficina para la Protección Financiera del Consumidor demandan al desarrollador y prestamista Colony Ridge, con sede en Texas, por ventas engañosas de tierras y financiamiento predatorioRead the Press Release
El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) demandaron hoy a Colony Ridge, una empresa desarrolladora y prestamista con sede en Texas, por operar un esquema ilegal de ventas de tierras, y por hacer blanco de decenas de miles de prestatarios hispanos haciendo falsas declaraciones y ofreciéndoles préstamos depredadores.
“La demanda de hoy alega que Colony Ridge usó a consumidores hispanos como blanco de sus préstamos depredadores, mintió a los prestatarios acerca de la infraestructura para agua, cloacas y electricidad disponible en sus lotes, y se aprovechó de las barreras del idioma, efectuando la mayor parte de su mercadeo en español, mientras ofrecía importantes documentos transaccionales solamente en inglés”, dijo el Fiscal General Merrick B. Garland. “La discriminación crediticia afecta a familias y comunidades por generaciones, no es correcto, y no tiene cabida en nuestro país. Es por ello que, desde hace dos años, he lanzado la Iniciativa para Combatir la Exclusión Financiera en el Departamento de Justicia, y por lo que nos mantenemos determinados a continuar esta labor”.
La demanda presentada en un tribunal de distrito federal alega que Colony Ridge vende a familias desprevenidas tierras propensas a inundaciones sin agua, alcantarillado o infraestructura eléctrica, y que la empresa prepara a los prestatarios para que quiebren con préstamos que no pueden pagar. Aproximadamente uno de cada cuatro préstamos de Colony Ridge termina en ejecución hipotecaria, después de lo cual la empresa recompra las propiedades y las vende a nuevos prestatarios. El Departamento de Justicia y la CFPB buscan reparación para los prestatarios perjudicados por Colony Ridge y el fin inmediato de sus prácticas ilegales.
“Colony Ridge prometía cumplir el sueño americano, pero alegamos que en realidad solo le ha creado pesadillas a miles de familias trabajadoras hispanas, que esperaban poder construir sus hogares en la comunidad Terrenos Houston”, dijo Kristen Clarke, Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Esta demanda demuestra nuestro compromiso de hacer rendir cuentas a aquellos que, dentro de la industrias hipotecaria y financiera, busquen hacer blanco y explotar a compradores de vivienda solo por ser hispanos o no hablar bien inglés. A través de nuestra Iniciativa para Combatir la Exclusión Financiera, el Departamento de Justicia continuará agresivamente desmantelando prácticas depredadoras, engañosas e injustas en el otorgamiento de crédito, para salvaguardar los derechos de todo quienes busquen comprar una vivienda”.
“La demanda de la CFPB y el Departamento de Justicia en el tribunal federal alega un sinnúmero de cargos contra Colony Ridge de una serie de conductas ilegales y busca detener este plan preparado para fracasar que ha llevado a miles de familias a perder sus sueños de tener vivienda propia”, dijo el director de la CFPB, Rohit Chopra. “Nuestra investigación descubrió que Colony Ridge está hostigando a prestatarios con mentiras, recargando a las familias con préstamos abusivos para terrenos que la compañía sabe que se han inundado repetidamente con aguas residuales y carecían de infraestructura de servicios básicos”.
“Al usar aplicaciones de redes sociales del siglo 21 para hacer blanco de consumidores y engañarlos, Colony Ridge explotó algo que es tan antiguo como nuestro país, el sueño de un inmigrante a tener su propia vivienda”, dijo Alamdar S. Hamdani, Fiscal de los Estados Unidos para el Distrito Sur de Texas (SDTX, por sus siglas en inglés). “Como alegamos en la demanda, la práctica explotadora de Colony Ridge comenzaba con publicidad engañosa en plataformas de redes sociales, como Tik Tok, y terminaba con familias económicamente arruinadas, sin casa, cuyos sueños han sido destruidos. El SDTX, junto a la División de Derechos Civiles del Departamento de Justicia y la CFPB, ha entablado esta demanda como una promesa de trabajar incansablemente por las familias hispanas que fueron víctimas de las supuestas prácticas predatorias de otorgamiento de crédito de Colony Ridge, y como advertencia a quienes se sientan vulnerables para que no confíen en prestamistas que prometan financiamiento fácil, y luego roben sus ahorros y sueños”.
La demanda nombra como demandados a tres compañías afiliadas a Colony Ridge, así como también a Loan Originator Services, una empresa hipotecaria no bancaria, que tiene licencia del estado de Texas para otorgar préstamos. Colony Ridge ha desarrollado más de 40,000 lotes de tierras, esparcidos en un área no incorporada del condado Liberty en Texas, aproximadamente a 30 millas al noroeste de la cuidad de Houston. Colony Ridge mercadea estas subdivisiones como “Terrenos Houston” y “Terrenos Santa Fe”.
Según la demanda, Colony Ridge hace blanco de prestatarios hispanoparlantes: La compañía pública casi exclusivamente en español, frecuentemente usando Tik Tok u otros mensajes en redes sociales donde muestran, por ejemplo, banderas y música regional de países de Latino América. En sus piezas publicitarias, Colony Ridge les promete a los consumidores la posibilidad de cumplir su sueño de tener su propia vivienda, usando su propio financiamiento del vendedor; un préstamo fácil de obtener, que no requiere revisión de crédito y sólo exige un pequeño depósito.
La demanda alega que Colony Ridge ha inducido a decenas de miles de consumidores hispanos a tomar sus productos crediticios depredadores. Datos sobre ejecuciones hipotecarias y títulos de propiedad, desde septiembre del 2019 a septiembre del 2022, muestran que Colony Ridge inició ejecuciones hipotecarias en, al menos, 30% de los lotes de tierras financiados por el vendedor, en los primeros tres años después de la compra, mientras la mayoría de los préstamos fallaban incluso antes de tres años. Los datos confirman que Colony Ridge fue responsable de más del 92% de las ejecuciones hipotecarias registradas en el condado Liberty entre los años 2017 y 2022.
Específicamente, la demanda radicada hoy alega que Colony Ridge:
- Engaña a los prestatarios acerca de la infraestructura existente en los lotes que vende: Colony Ridge ha hecho creer falsamente que los lotes en las subdivisiones Terrenos de Houston, son vendidos con infraestructura ya instalada para servicios de agua, cloacas y electricidad. La demanda cita numerosos anuncios publicitarios, incluyendo videos en Tik Tok, en los cuales la compañía hace declaraciones como: “Terrenos Houston tiene todos los servicios de ciudad por cada terreno”. Solamente después que los solicitantes han pagado depósitos no reembolsables que Colony Ridge les informa que la propiedad podría no contar con dicha infraestructura, y hace esa declaración solamente en inglés.
- Vende lotes de tierra que se inundan por la lluvia o con aguas de cloaca: La demanda alega que los empleados de Colony Ridge no informan a los prestamistas de los riesgos de inundación de lotes que ya se han inundado repetidamente en el pasado, o falsamente aseguran que nunca se han inundado. De hecho, en algunas partes de la subdivisión Terrenos Houston, la lluvia provoca inundaciones severas, lo que causa que las aguas de cloaca corran a través o alrededor de las propiedades de los prestatarios, y dañen sus pertenencias.
- Hicieron blanco a consumidores hispanos con préstamos abusivos: A través del mercadeo directo al consumidor en sitios web, la participación en las redes sociales y el telemercadeo, Colony Ridge hizo blanco a consumidores hispanos. Luego Colony Ridge explota las barreras del idioma durante su proceso de ventas y utiliza tácticas de ventas de alta presión para presionar a los prestatarios para que obtengan su producto crediticio rápidamente. Los préstamos tienen tasas de interés exorbitantes. Entre 2017 y 2021, las tasas de interés de los préstamos de Colony Ridge oscilaron entre el 10,9% y el 12,9%, mientras que un préstamo estándar de tasa fija a 20 años promedió entre el 2,35% y el 4,05% durante el mismo período de tiempo. Y al otorgar el préstamo, Colony Ridge y Loan Originator Services no recopilaron la información necesaria para determinar si los solicitantes pueden pagar el préstamo.
- Exprime a los prestatarios en un ciclo que lleva a la ejecución hipotecaria: Al atrasarse las familias con sus pagos y caer en una ejecución hipotecaria, Colony Ridge puede “flip” o “voltear” las propiedades comprándolas nuevamente y revendiéndolas, muchas veces a precios más altos. Datos sobre ejecuciones hipotecarias y títulos de propiedad muestran que Colony Ridge volteó al menos, el 40 por ciento de las propiedades que vendió entre septiembre del 2019 y septiembre del 2022. En tres años, la compañía vendió aproximadamente 8,237 propiedades dos veces, vendió otras 3,267 tres veces y otras 2,067 cuatro o más veces.
- Explota las barreras del idioma que tienen los prestatarios: Mientras que Colony Ridge efectúa la mayor parte de su publicidad en español, cuando se trata de transacciones, ofrece importantes documentos solamente en inglés. Fallar en ofrecerles a los prestatarios traducciones exactas de contratos, pagarés y otros documentos, en el lenguaje en el cual habían efectuado la venta y explotar la capacidad limitada de hablar inglés de los prestatarios, viola leyes federales.
Acción de cumplimiento de ley
La demanda alega que los demandados ilegalmente discriminaron a los solicitantes basándose en su raza u origen nacional, violando la Ley de Vivienda Justa (FHA, por sus siglas en inglés). Según lo establecido en la FHA, el Departamento de Justicia tiene la autoridad de tomar acciones de ejercicio de ley contra compañías de bienes raíces, instituciones de crédito y otras entidades, cuyas prácticas discriminen en la realización de transacciones de bienes raíces, en la disponibilidad de vivienda, y en la oferta de servicios de vivienda. La demanda también alega que los demandados ilegalmente discriminaron a los solicitantes basándose en su raza u origen nacional, violando lo establecido en la Ley de Igualdad de Oportunidad de Crédito (ECOA, por sus siglas en inglés) y sus Normativa de Implementación B. Tanto el Departamento de Justicia como la CFPB tienen la autoridad para hacer cumplir la ECOA. Adicionalmente, la demanda alega que los actos y prácticas engañosas de los demandados violaron lo establecido por la Ley de Protección Financiera del Consumidor (CFPA, por sus siglas en inglés) del 2010 y la Ley de Divulgaciones Completas en Ventas de Tierras (ILSA, por sus siglas en inglés) y sus Normativas de Implementación K y J, sobre las cuales, la CFPB tiene la autoridad para ejercer su cumplimiento.
La demanda busca poner fin a la supuesta conducta ilegal de la compañía Colony Ridge, proveer reparaciones a los consumidores afectados e imponerle una multa monetaria civil que será depositada en el fondo de la CFPB para el alivio de víctimas (en inglés). Si los demandados son encontrados responsables, el monto de cualquier indemnización será determinado durante la litigación en la corte federal.
Toda persona que crea haber sido afectada por las prácticas de negocios de Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC y Loan Originator Services LLC, debe llamar a la Línea de Ayuda Contra la Discriminación del Departamento de Justicia, al 1-833-591-0291, marque el 2 para hablar en español, marque el 3 para seleccionar discriminación en préstamos justos y marque el 1 para dejar un mensaje de Colony Ridge, o escriba a la dirección email [email protected].
Esta demanda forma parte de la Iniciativa para Combatir la Exclusión Financiera del Departamento de Justicia. La exclusión es una práctica ilegal, a través de la cual, los prestamistas les niegan a comunidades de color, acceso equitativo a oportunidades de préstamos y crédito. La exclusión reversa ocurre cuando los prestamistas ofrecen tasas de interés infladas y términos de crédito injustos a comunidades de color. Ambas prácticas evitan que estas comunidades alcancen una propiedad de vivienda sostenible, y les niega la oportunidad de construir riqueza.
La Iniciativa para Combatir la Exclusión Financiera es el esfuerzo de cumplimiento de ley más agresivo y coordinado del Departamento de Justicia para enfrentar toda forma de exclusión. Desde el año 2021, la misma ha obtenido más de $100 millones en 10 acuerdos de resolución alcanzados con bancos e instituciones crediticias, para proveer de oportunidades de acceso al crédito a comunidades de color en Houston, Memphis (Tennessee), Philadelphia, Camden (New Jersey), Wilmington (Delaware), Newark (New Jersey), Los Angeles, Columbus (Ohio), Tulsa (Oklahoma), Rhode Island, y Jacksonville (Florida). El Departamento de Justicia se ha asociado con las Oficinas de los Fiscales Federales, agencias federales reguladoras de la industria financiera, incluyendo a la CFPB, y las Oficinas de fiscalías estatales, para hacer cumplir las leyes federales de equidad en el crédito que prohíben la exclusión. Esta demanda, es la primera acción contra la exclusión reversa, tomada bajo la iniciativa.
La página web del Departamento de Justicia ofrece recursos sobre la equidad en el crédito. El Departamento de Justicia recibe quejas sobre discriminación en la página www.civilrights.justice.gov/. Quejas acerca de discriminación en vivienda o crediticia también pueden ser enviadas escribiendo a la dirección email [email protected].
La página web de la CFPB ofrece recursos sobre la discriminación en el crédito (en inglés) e hipotecas. Los consumidores pueden enviar quejas en la página de la CFPB, o llamando al (855) 411-CFPB (2372). Se les alienta a aquellos empleados que crean que las compañías donde trabajan han violado leyes de protección financiera al consumidor a enviar la información que tengan a la dirección [email protected].
colony_ridge_complaint.pdfChinese national admits to possessing multiple child pornography videosRead the Press Release
McALLEN, Texas – A 45-year-old Chinese national has been convicted for transporting child pornography, announced U.S. Attorney Alamdar S. Hamdani.
On or about May 8, Tong Sun attempted to illegally enter the country in an area near Roma. Law enforcement took him into custody, at which time they discovered several videos that constituted child sexual abuse material or child pornography on his phone.
One of the videos depicted a child who appeared to be younger than five years of age.
Sun admitted to ownership of the phone and to possessing the child sexual abuse material.
U.S. Magistrate Judge Juan F. Alanis accepted the plea and set sentencing for March 25, 2024. At that time, Sun faces up to 20 years in federal prison and a possible $250,000 maximum fine. He has been and will remain in custody pending sentencing.
Homeland Security Investigations and Border Patrol conducted the investigation.
Assistant U.S. Attorney Cahal P. McColgan is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Cameron County resident imprisoned for enticing children and alien smugglingRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old man has been ordered to prison for enticement of a minor, possession of child pornography and transportation of undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
Paz Gomez-Magdaleno pleaded guilty on March 1.
U.S. District Judge Nelva Gonzales Ramos has now sentenced Gomez-Magdaleno to 60, 120 and 240 months for the transportation of undocumented aliens, possession of child pornography and enticement of a minor convictions, respectively. At the hearing, the court heard Gomez had child pornography of relatives and minors from the local community. In addition, Gomez had obtained images of child pornography from minors over the internet from interactions through various social media apps. Gomez will serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Gomez will also be ordered to register as a sex offender. Restitution to the victims will be determined at a later date.
On Jan. 28, 2021, Gomez drove his tractor-trailer to the primary inspection lane at the U.S. Border Patrol checkpoint near Sarita. A K-9 alerted to the vehicle indicating there were potential individuals concealed inside the trailer of the vehicle.
Upon further inspection, authorities discovered 20 undocumented aliens in the trailer and two cell phones within the vehicle.
Law enforcement obtained search warrants for the cell phones and discovered them to contain images and videos of child pornography. Authorities further discovered Gomez engaging in numerous conversations on different messaging apps.
An investigation revealed Gomez sought out minors to send him explicit photos and videos in exchange for money and gifts.
Gomez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance of the Border Patrol and Cameron County Sheriff’s Office.
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.
Partners in drug trafficking hub sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – Two Rio Grande Valley residents have been sentenced in for drug and money laundering conspiracies, announced U.S. Attorney Alamdar S. Hamdani.
Luis Ortiz III, 43, Mission, pleaded guilty June 21, 2019, while Rodolfo Hernandez Ramos 44, Los Fresnos, entered his plea Aug. 9, 2019, to conspiracy to possess with intent to distribute five or more kilograms of cocaine and 1,000 or more kilograms of marijuana. They also admitted to a conspiracy to launder drug proceeds in the form of bulk U.S. currency between July 1, 2014, and March 19, 2019.
U.S. District Judge Nelva Gonzales Ramos has now ordered Ramos to serve a total of 135 months in federal prison while Ortiz was ordered to serve 100 months imprisonment.
The investigation focused on a group of cocaine and marijuana distributors in the Rio Grande Valley and their sources of drugs who smuggled these drugs into the United States from Mexico. Drugs were smuggled into the country in passenger vehicles, large trucks and dropped from aircraft.
Ramos and Ortiz worked within the drug trafficking organization by operating stash houses to prepare the drugs for shipment within the United States. The partnership also used trucks to deliver cocaine and marijuana to the customers in 22 other states. Both men were also responsible for having the proceeds of the drug sales transported back to South Texas for delivery to the suppliers.
Ramos has been and will remain in custody pending transfer to a U.S. Bureau of Prisons (BOP) facility to be determined in the near future. Luis Ortiz III was permitted to remain to remain on bond and voluntarily surrender at a later date.
The Drug Enforcement Administration and IRS – Criminal Investigation conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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. Attorney Kenneth Cusick prosecuted the case.
Local man heads to prison for sex trafficking teenagerRead the Press Release
HOUSTON – A 32-year-old man who resided in Houston has been sentenced to federal prison for trafficking a 15-year-old girl for commercial sex using force, fraud or coercion, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Giovanny Xavier Limon aka Ace or Ace One July 31 following a four-day trial.
U.S. District Judge David Hittner has now ordered Limon to serve 40 years in federal prison to be immediately followed by 10 years of supervised release. At the hearing, the court heard from the victim who recounted her ordeal, noting how she was young and desperate, how she showed her weakness and Limon took advantage of that and how she let him rob her of her happiness and a real smile. “Boy I’ve been waiting for this day,” she said. “To spit on you how you spit on me. My past does not and will not define me or my future, and after today I will not let you be in my shadow no longer. You took my life but I'm still breathing to live another day.”
“Sex traffickers have a PhD in manipulation using their skills to exploit our children and steal their innocence,” said Hamdani. “Although Limon stole that from this victim, he could not take her courage. She faced her oppressor at trial, recounting how Limon used her body, selling it to men as a commodity and raping it for his sick pleasure. Thanks to her, the next generation of children will be free—free from a predator’s grasp.”
“This case is a sad and angering example of innocence lost at the hands of sex traffickers like Limon who don’t care about anything other than exploiting our children,” said Acting Special Agent in Charge David Martinez of the FBI Houston Field Office. “Fortunately, the young victim in this case was rescued by law enforcement but not before being put through a month of hell by her trafficker. May his sentence serve as a promise to other sex traffickers and their victims that justice will be done.”
Limon trafficked a 15-year-old minor female for commercial sex during May and June 2022. After meeting her, he soon realized how he could isolate her from her companions and exploit her. She had no phone, little access to the internet and, most importantly, no money to support herself.
At trial, the jury heard evidence detailing how Limon forced the minor victim to engage in commercial sex with strangers on numerous occasions. Limon provided her with lingerie, photographed her and forced her to turn over all proceeds to him.
Limon caused the images to be posted, displaying his moniker “Ace One,” to commercial sex ads on the internet. The ads featured her posing in seductive lingerie on a bed. Limon and others created these ads portraying the minor as adult interested in engaging in commercial sex.
He controlled the victim and had them staying in several questionable motels. At one of these locations, he tattooed her entire inner forearm with the name of one of her relatives who she lost during the pandemic. The tattoo was so poorly done that after the trial, and with parental permission, she had it revised to represent something other than a memory of the Limon caused her.
Throughout the time she was with him, Limon provided her with illicit drugs, including meth, and fed her very little food. When he was not causing her to engage in commercial sex, Limon was having sex with her himself, knowing she was only 15 years of age.
The victim testified at trial describing her month-long ordeal in detail.
The jury also saw hotel records, internet sex ads and heard the testimony of the sexual assault treatment exam nurse.
Limon has been and will remain in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation as part of the Human Trafficking Rescue Alliance (HTRA). Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Bulger Leo prosecuted the case.
HTRA law enforcement includes members of the Houston Police Department, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Manvel resident charged for creating fake businesses to obtain COVID-19 fundsRead the Press Release
HOUSTON – A 38-year-old man has been indicted for wire fraud and money laundering, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Antonio Jackson Jr. this morning. He is expected to make his initial appearance before U.S. Magistrate Judge Yvonne Y. Ho at 2 p.m.
The indictment, returned Dec. 12, alleges Jackson fraudulently obtained approximately $492,611 in funds through the Small Business Administration’s (SBA) Payroll Protection Program and Economic Injury Disaster Loan Program.
According to the indictment, Jackson submitted false information and documents to the SBA to fraudulently obtain COVID-19 related loans. In his loan applications, Jackson allegedly claimed to be the owner and operator of multiple businesses with dozens of employees and millions in revenue and payroll expenses.
The charges allege the businesses were fictional. Jackson is alleged to have submitted fabricated payroll records, profit and loss statements as well as tax records to induce the SBA to approve the loans.
Jackson allegedly used the fraudulently obtained funds to purchase luxury retail goods, exotic trips and luxury vehicles.
Jackson is charged with four counts of wire fraud and four counts of money laundering. If convicted, he faces up to 20 years in prison and a possible $250,000 maximum fine.
The SBA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Andrew Swartz 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.
Jury convicts cartel leader in murder-for-hire conspiracyRead the Press Release
LAREDO – A federal jury has convicted a 40-year-old Mexican citizen residing in Laredo on multiple counts for conspiracy to possess with intent to distribute cocaine, kidnapping and murder-for-hire, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately one hour before finding Noe Gonzalez-Martinez aka Tocayo guilty on all counts as charged following a three-day trial.
Gonzalez-Martinez was convicted of conspiracy to possess with intent to distribute five kilograms or more of cocaine, murder-for-hire conspiracy, murder for hire, conspiracy to kidnap, possession of firearms in furtherance of drug trafficking related crime and interstate travel in aid of racketeering.
During the trial, the jury heard evidence that between Sept. 7, 2021, and Sept. 13, 2021, Gonzalez-Martinez, a leader and manager of the Cartel Del Noreste (CDN), and several other CDN members traveled from Nuevo Laredo, Tamaulipas, Mexico, into Laredo. There, Gonzalez-Martinez solicited the help of other CDN affiliates to recruit, plan and coordinate the kidnapping and murder of an individual the Cartel believed had stolen from them.
The investigation revealed Gonzalez-Martinez communicated via cellphone with co-conspirators to plan and coordinate the recovery of drugs and proceeds from the intended victim. In addition, Gonzalez-Martinez provided co-conspirators with an address where they could retrieve firearms and a vehicle to execute the murder.
On Sept. 13, 2021, co-conspirators took possession of an automobile and firearms to carry out the murder. The firearms included a Colt Government Model caliber .45 pistol, Trooper MKIII caliber .357 magnum revolver, Bushmaster caliber .223-5.56 mm rifle and a Colt AR-15 A2 caliber .223.
Law enforcement set up the arrest of three “sicarios” (hitmen) who were secreted into Laredo by the CDN. The sicarios were led to a vehicle and firearms in an undercover operation. Authorities apprehended all three sicarios during a joint law enforcement operation.
The jury also heard testimony from all law enforcement agencies involved in the operation. Authorities detailed their investigation into the cellphones used by the CDN to commit this crime, the firearms obtain by the CDN and the defendants border crossing. A co-conspirator provided insider knowledge of the CDN and its operations. Additionally, he admitted to the jury he was a sicario, a hired killer for the CDN and his participation in the crime.
Co-conspirators Juan Antonio Martinez-Padilla aka Juan Antonio Martinez-Lopez or Otoniel Martinez-Padilla, 58, Gregorio Gonzalez-Barragan, 33, and Rodolfo Reyna-Zapata, 25, all from Nuevo Laredo, Mexico, previously pleaded guilty to the kidnapping conspiracy and are pending sentencing on that charge.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for March 25, 2024. At that time, Gonzalez-Martinez faces up to life in federal prison. He has been and will remain in custody pending that hearing.
The Drug Enforcement Administration, Homeland Security Investigations and the Laredo Police Department conducted the investigation. Assistant U.S. Attorneys José Angel Moreno and Steven Chamberlin prosecuted the case.
Former Texas trooper imprisoned for to lying to FBIRead the Press Release
McALLEN, Texas – A 36-year-old Pharr resident has been sentenced for lying to federal authorities during a drug investigation, announced U.S. Attorney Alamdar S. Hamdani.
Pablo Talavera Jr., former Texas Department of Public Safety (DPS) trooper, pleaded guilty Aug. 28.
U.S. District Judge Micaela Alvarez has now ordered Talavera to serve 18 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard opposing arguments regarding the appropriate sentence. Judge Alvarez imposed a greater sentence due to Talavera’s position as a law enforcement officer when he committed the offense.
In 2019, law enforcement initiated an investigation targeting an organization responsible for the transportation of multi-kilogram quantities of meth, heroin and cocaine from the Rio Grande Valley to Tennessee. Talavera’s father was the organization’s leader.
The investigation revealed Talavera used his position as a DPS trooper to assist his father by running license plates of vehicles believed to be that of law enforcement. Talavera initially lied to authorities. He ultimately admitted to assisting his father, who is now serving 21 years in federal prison.
Talavera 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 and Homeland Security Investigations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Texas Rangers. Assistant U.S. Attorney Jesse Salazar prosecuted the case.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Fake doctor imprisoned for sexual exploitation of minorsRead the Press Release
HOUSTON – A 39-year-old Houston man has been sentenced for producing child pornography of several minor female victims, announced U.S. Attorney Alamdar S. Hamdani.
Nam Vu Bui pleaded guilty Aug. 21.
Chief U.S. District Judge Lee H. Rosenthal has now sentenced Bui to 330 months in prison. At the hearing, the court heard from two of the victims, after which they were recognized for their bravery in recounting the events and the trauma it caused and continues to cause them. Bui was further ordered to pay $19,680 in restitution to the 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. Bui will also be required to register as a sex offender. In handing down the prison terms, Judge Rosenthal stated that what he did was evil, further noting that child sexual assaults, like those he committed, should be called what they are, rape.
“The bravery shown by the victims in this case is to be commended,” said Hamdani. “They spoke up against evil, rose above the years of abuse perpetrated on them and have given true meaning to the word survivor. It is my hope that more victims, hearing about these brave young women, will speak out against their abusers. It is the first step in bringing these child sexual predators to justice.”
Bui first came to the attention of law enforcement in Vermont for pretending to be a medical student conducting cancer research. As part of that “research,” he convinced his girlfriend’s friends to allow him to perform gynecological exams on them in their dorm rooms. One of the victims got suspicious when he asked her to wear a blindfold. She peeked under it and realized he was trying to record what he was doing without her consent.
The ensuing investigation revealed Bui was from Houston and had infiltrated his girlfriend’s family and other Vietnamese immigrants as a tutor for their female minor children. During the tutoring sessions, he sexually molested the minor victims and recorded them doing acts such as performing oral sex on him. Bui also deceived the victims and caused them to create child pornography of themselves for him. He created email accounts pretending to be attorneys at fictitious law firms, friends of the victims and working as a vigilante combatting a child pornography ring supposedly made up of law enforcement officers.
Authorities later conducted a search at the residence he shared with his mother in Houston. Forensic analysis of the seized items in the home revealed Bui produced images of three minor victims and others.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Houston Police Department conducted the investigation with the assistance of the Vermont Internet Crimes Against Children Task Force, Middlebury College Department of Public Safety and Vermont FBI.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Money launderer for cartel sent to prisonRead the Press Release
HOUSTON – A 40-year-old Mexican citizen has been sentenced for international drug trafficking and money laundering conspiracy, operating on behalf of the Gulf Cartel in Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Ezequiel Alanis Espitia pleaded guilty May 17.
Chief U.S. District Judge Randy Crane has now ordered Espitia to serve 324 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court noted the ongoing drug trafficking and money laundering conspiracies spanned over the course of eight years. The conspiracy involved 39 kilograms of cocaine, six kilograms of fentanyl, two and a half kilograms of heroin and more than 1,000 kilograms of marijuana. During the investigation, law enforcement seized $610,400 in drug proceeds. The court also heard Espitia was a leader of the criminal activity, maintained stash houses for the purpose of distributing drugs and was directly involved in the importation of controlled substances from Mexico into the United States.
“The Cartel del Golfo, aka the Gulf Cartel, is a brutal and violent Mexican drug trafficking organization that relies on money launderers and drug distributors, like Espitia, to wash its ill-gotten gains and infect local communities with drugs,” said Hamdani. “This substantial sentence serves as a warning to those who help launder monies and deliver dangerous drugs, such as fentanyl, that destroy our neighborhoods and kill our kids.”
Espitia’s associates, including his brother, Ramiro Alanis Espitia, 44, Mexico, was also sentenced for his role in the conspiracies and received 60 months in prison to be immediately followed by four years supervised release. Espitia’s wife, Brenda Natalie Alanis Duran, 39, Houston, and his sister, Maria Isabel Lara Alanis, 55, Mexico, were also convicted and will be sentenced on Dec. 13 and Jan. 17, 2024, respectively.
To date, a total of 16 have been convicted for their roles in the conspiracies and have received sentences between 12 and 81 months.
Espitia 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 along with the Drug Enforcement Administration, IRS-Criminal Investigation and the Houston Police Department.
This Operation, dubbed “Walking Eagle,” 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.
Houstonian sent to prison after two violent armed robberiesRead the Press Release
HOUSTON – A 51-year-old man has been sentenced following his convictions for committing two armed robberies in 2019, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for approximately two hours after a three-day trial before convicting Hezron Benjamin Stuart, March 15 on two counts of interference with commerce by robbery and two counts of discharging a firearm during a crime of violence.
U.S. District Judge Lee Rosenthal has now handed Stuart a 128-month term of imprisonment for the robberies. He also received 120 months for each firearms charge which must be served consecutively to the other sentence imposed. The total 368-month prison term will be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence about Stuart’s lengthy and violent criminal history, as well as three additional armed robberies he committed in 2019.
“Bank robbery is not a victimless crime,” said Hamdani. “Mr. Stuart spent his entire life committing violent crimes in our city. In multiple armed robberies he shot a gun and seriously injured a store clerk. This sentence will ensure the citizens of Houston are protected from his brazen criminal conduct in the future.”
The jury heard evidence that on May 18, 2019, Stuart robbed the Corner Food Mart located on Mangum Street and discharged his firearm.
On May 23, 2019, Stuart robbed a Citgo Gas Station located at South Loop East. The store clerk refused to give up the cash and was ultimately shot.
At trial, the jury heard from witnesses in both cases, including the surviving shooting victim. The victim identified Stuart as the person who robbed and shot at them.
In addition, an examiner compared Stuart’s fingerprints to those left at the Citgo gas station robbery and ultimately determined them to be the same.
Stuart represented himself during the trial and claimed he was not the individual who committed the robberies. The jury did not believe those claims and found him guilty as charged.
Stuart 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI conducted the investigation as part of the ATF Houston Crime Gun Strike Force with the assistance of the Houston Police Department (HPD) and the Houston Forensic Science Center. Assistant U.S. Attorneys Carolyn Ferko and Britni Cooper prosecuted the case.
The ATF Houston Crime Gun Strike Force was created as a joint effort between the ATF And HPD to combat the growing trend in crimes involving firearms.
Clinic office manager sentenced for $1.2M pill mill schemeRead the Press Release
HOUSTON – A medical clinic office manager has been sentenced for operating a pill mill clinic that unlawfully distributed over 600,000 opioid pills, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Andres Martinez, Jr., 30, and Dr. Oscar Lightner, 74, both of Laredo, April 11 for unlawfully distributing and dispensing controlled substances and conspiracy.
Chief U.S. District Judge Lee H. Rosenthal has now ordered Martinez to serve 84 months in federal prison to be immediately followed by three years of supervised release.
At the trial, the jury heard evidence that Lightner and Martinez operated Jomori Health and Wellness (Jomori), a purported Houston pain management clinic, as a pill mill. Lightner, owner of and physician at Jomori, unlawfully prescribed dangerous combinations of controlled substances — including hydrocodone, carisoprodol and alprazolam — to his patients without a legitimate medical purpose in exchange for cash payments ranging from $250 to $500.
Martinez, Lightner’s stepson, coordinated with crew leaders to bring multiple people, including individuals living in homeless shelters, into Jomori to pose as patients to obtain prescriptions for opioids and other controlled substances.
Jomori received more than $1.2 million in cash over 14 months through the scheme that resulted in the unlawful distribution and dispensing of more than 600,000 opioids and other controlled substances.
Lightner was previously sentenced to seven years in federal prison for his role.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA) Houston Division made the announcement as well.
The DEA conducted the investigation.
Trial Attorneys Monica Cooper and Andrew Tamayo of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Clinic Office Manager Sentenced for $1.2M Pill Mill SchemeRead the Press Release
A medical clinic office manager was sentenced today to seven years in prison for operating a pill mill clinic that unlawfully distributed over 600,000 opioid pills in exchange for cash.
According to court documents and evidence presented at trial, Andres Martinez Jr., 30, of Laredo, Texas, was the office manager of Jomori Health and Wellness (Jomori), a purported Houston pain management clinic. Martinez operated Jomori with Dr. Oscar Lightner, 74, also of Laredo, as a pill mill. Lightner, who was the owner of and physician at Jomori, unlawfully prescribed dangerous combinations of controlled substances — including of hydrocodone, carisoprodol, and alprazolam — to his patients without a legitimate medical purpose in exchange for cash payments ranging from $250 to $500. Martinez, who is Lightner’s stepson, coordinated with crew leaders to bring multiple people, including individuals living in homeless shelters, into Jomori to pose as patients to obtain prescriptions for opioids and other controlled substances. Jomori received over $1.2 million in cash over 14 months through its scheme that resulted in the unlawful distribution and dispensing of over 600,000 opioids and other controlled substances.
On April 11, Martinez and Lightner were convicted of unlawfully distributing and dispensing controlled substances and conspiracy. On Nov. 30, Lightner was sentenced to seven 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, and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA) Houston Division made the announcement.
The DEA investigated the case.
Trial Attorneys Monica Cooper and Andrew Tamayo of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Brazoria man sentenced for producing and possessing hundreds of child pornography images and videosRead the Press Release
GALVESTON, Texas – A 40-year-old man has been ordered to federal prison for production and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Sean Michael Kriss pleaded guilty June 1, 2022, to one count of sexual exploitation of a child and one count of possession of child pornography.
U.S. District Judge Jeffrey Brown has now sentenced Kriss to 360 and 120 months for the production and possession convictions, respectively. They will run consecutively for a total 480-month term of imprisonment. At the hearing, the court also heard additional information including a letter from the victim’s mother detailing how Kriss’ actions destroyed their family and has caused them a lot of stress and anxiety. She further detailed how his betrayal took away their sense of security. In handing down the prison terms, the court noted that Kriss committed these acts against the victim who was at a vulnerable age. Kriss was further ordered to 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. Kriss will also be ordered to register as a sex offender.
“Individuals, like Kriss, who produce child pornography and share it with perverted like-minded individuals need to be stopped,” said Hamdani. This sentence will help to do that. The exploitation of children has no place in our community and my office will vigorously pursue prosecution of anyone involved in the production and distribution of child pornography to the fullest extent of the law.”
The investigation revealed Kriss had shared a video via Snapchat he created of a minor female from his cellphone.
Law enforcement obtained a search warrant for his residence and seized his electronic devices. Forensic examination on those items resulted in the discovery of child pornography videos and images depicting the minor victim.
In total, law enforcement found 408 images and two videos of child pornography Kriss had in his collection.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Pearland Police Department and Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorneys Sherin Daniel and Kimberly Leo prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Texas Mother and Son Sentenced for Sex Trafficking of a MinorRead the Press Release
A Mexican woman who legally resided in Mission, Texas, and her son, who is a U.S. citizen, were sentenced today for sex trafficking a young girl.
Rita Martinez, 65, was sentenced to 360 months in prison, ordered to pay over $840,000 in restitution and surrender her house and bar to the government. Genaro Fuentes, 41, Martinez’s son and co-defendant, was sentenced to 72 months in prison and ordered to pay $20,000 in restitution.
“The Justice Department is committed to identifying and prosecuting parasitic commercial sex traffickers, like the defendants here, who use the promise of America to lure vulnerable women and children into the United States and then coerce them into commercial sex acts,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will focus the full force of our legal authority on preventing and punishing human trafficking and seeking restitution for the victims of these heinous crimes.”
“Martinez’s decades-long business model was simple yet evil: travel to Mexico, entice poor, young girls across the border with false promises of a better life and then force those girls to engage in sexual acts with her bar’s male patrons,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Martinez treated the victims like chattel, while physically and psychologically imprisoning them. Today’s sentence ensures the only person left imprisoned, for decades to come, is Martinez and sends a strong message to human traffickers moonlighting as bar owners: you’re next.”
“Today’s sentence will ensure that people like Rita Martinez are no longer able to victimize anyone in vulnerable or desperate circumstances,” said Acting Special Agent in Charge Doug Olson for the FBI San Antonio Division. “We want to thank our partners in the Texas Alcoholic Beverage Commission (TABC) for their continued assistance in bringing predators like this to justice.”
According to court documents, Martinez operated a bar known at various times as Perez Lounge, Rita’s Lounge and Rita’s Sports Bar. From the spring of 2005 to the fall of 2006, the 16-year-old young girl lived with Martinez and worked at the bar. Martinez arranged for the young girl to engage in commercial sex acts with men who were customers at the bar. Martinez also accepted money from these clients before allowing them to take the young girl out of the bar to engage in commercial sex. Martinez applied the money she received from commercial sex buyers to the smuggling debt that she imposed upon the minor victim to transport her from Mexico into the United States.
The FBI San Antonio Field Office, McAllen Resident Agency investigated the case, with the assistance of the Texas Alcoholic Beverage Commission.
Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit and Assistant U.S. Attorneys Laura Garcia and Sherri Zack for the Southern District of Texas prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Cantina owner and son receive significant sentence for forcing young girl to engage in commercial sexRead the Press Release
McALLEN, Texas – A Mexican woman, who legally resided in Mission, and a local Texan have been ordered to federal prison for sex trafficking a young girl, announced U.S. Attorney Alamdar S. Hamdani.
Rita Martinez, 65, pleaded guilty June 30. Her son - Genaro Fuentes, 41, entered his plea Jan. 26 and admitted his role working at the bar and helping to facilitate the commercial sex.
Chief U.S. District Judge Randy Crane has now imposed a 360-month term of imprisonment for Martinez, while Fuentes was ordered to serve 72 months. Martinez and Fuentes were also ordered to pay $840,000 and $20,000 in restitution to the victims, respectively. In addition, the court forfeited the bar and the home of Martinez. At the hearing, the court heard additional testimony from eight victims, including a woman who was only 12 years old when Martinez brought her from Mexico and started trafficking her as a sex worker in her cantina. Prior to handing down the prison terms, Chief Judge Crane noted some people just have evil in their hearts.
“Martinez’s decades-long business model was simple yet evil: travel to Mexico, entice poor, young girls across the border with false promises of a better life and then force those girls to engage in sexual acts with her bar’s male patrons,” said Hamdani. “Martinez treated the victims like chattel, while physically and psychologically imprisoning them. Today’s sentence ensures the only person left imprisoned, for decades to come, is Martinez and sends a strong message to human traffickers moonlighting as bar owners: you’re next."
“Human trafficking cannot be tolerated, especially those who exploit many victims and use the promise of America to lure vulnerable women and children into the United States, only to coerce them into commercial sex acts,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to identifying and prosecuting human trafficking cases, and seeking restitution for the victims who survived these heinous crimes.”
“Today’s sentence will ensure that people like Rita Martinez are no longer able to victimize anyone in vulnerable or desperate circumstances,” said Acting Special Agent in Charge Doug Olson for the FBI San Antonio Division. “We want to thank our partners in the Texas Alcoholic Beverage Commission (TABC) for their continued assistance in bringing predators like this to justice.”
For decades, Martinez smuggled unwitting women and girls from Mexico into the United States and compelled them to engage in commercial sex work in a cantina she owned and operated in Mission known as Perez Lounge, Rita’s Lounge and Rita’s Sports Bar.
Martinez arranged for the young women and girls to engage in commercial sex acts with men who were patrons at the bar. She accepted money from these clients before allowing them to take them out of the bar to engage in the commercial sex. Martinez claimed she applied the money she received from the commercial sex to the smuggling debt she imposed upon the victims for their illegal transport from Mexico into the United States. In addition to working for Martinez, many victims were forced to reside in Martinez’s home.
Martinez and Fuentes 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 assistance from the TABC. Assistant U.S. Attorneys Laura Garcia and Sherri Zack prosecuted the case along with Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Houstonian admits to $935,000 international money laundering schemeRead the Press Release
HOUSTON – A 31-year-old local man has pleaded guilty to conspiracy to commit money laundering, announced U.S. Attorney Alamdar S. Hamdani.
From July 2018 to November 2018, Baudelaire Tchouala laundered money into several bank accounts and withdrew the money to send to others. He used a business account to conceal the fraudulent activity.
Victims believed they paid for goods and services from legitimate individuals and companies but were tricked into sending the money to Tchouala’s accounts. On July 23, 2018, a victim wired $64,000 from their bank account to Tchouala’s account based on instructions they received via email. The victim sent the money, believing it was for the purchase of a house.
On Oct. 29, 2018, another victim directed $198,955 into Tchouala’s account for a down payment on a condominium. The receiving account was just opened Oct. 12, 2018.
In addition, several companies also fell victim to the scheme. One had communicated via email with someone pretending to be from another company. On Oct. 4, 2018, that person sent an email requesting that payment be sent to an updated bank account. Based on that email, the victim company sent approximately $645,711 to Tchouala’s bank account.
The victims reside in various countries including the United States, South Korea and Japan.
Tchouala withdrew most of the money via cash, card purchases, checks and transfers. Tchouala’s fraudulent financial activity totaled approximately $935,000.
U.S. District Judge Alfred H. Bennett accepted the plea and set sentencing for March 7, 2024. At that time, he faces up to 20 years in federal prison and a possible $500,000 maximum fine.
Tchouala was permitted to remain on bond pending sentencing.
FBI conducted the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Shirin Hakimzadeh is prosecuting the case.
Two charged in $1.2 million COVID-19 relief fraud conspiracyRead the Press Release
HOUSTON – A Houston area brother and sister have been indicted for submitting fraudulent COVID-19 relief loans, announced U.S. Attorney Alamdar S. Hamdani.
Jonathan Flores, 31, Willis, and Bianca April Flores, 29, Houston, are expected to make their initial appearances before U.S. Magistrate Judge Christina A. Bryan at 2 p.m.
The six-count indictment, returned Nov. 29, alleges both committed one count of conspiracy to commit wire fraud and five counts of wire fraud.
According to the indictment, Jonathan and Bianca Flores conspired to submit nine false and fraudulent Paycheck Protection Program and Economic Injury Disaster Loan applications. They allegedly falsified the number of employees and the average monthly payroll expenses of the applicant businesses.
According to the charges, Jonathan and Bianca Flores fraudulently obtained approximately $1.2 million in COVID-19 relief funds.
If convicted, each face up to five years in federal prison for conspiracy to commit wire fraud, while wire fraud carries a possible sentence of up to 20 years in prison.
FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Freer resident sent to prison for possessing cocaineRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old man has been sentenced following his conviction for possession with intent to distribute a substance containing a detectable amount of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Branden Lee Narvaiz pleaded guilty Sept. 13.
U.S. District Judge David S. Morales has now ordered Narvaiz to serve 60 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard additional evidence that at the time of the offense, Narvaiz was on state parole for the same crime.
On April 11, law enforcement stopped Narvaiz for driving on the wrong side of the road. Authorities conducted a search of his vehicle and located cash, cocaine, scales and baggies.
Following the return of a federal indictment, authorities arrested him June 14. At that time, they again found cocaine, money and plastic bags.
As part of his plea, Narvaiz admitted he possessed 500 grams or more of a mixture or substance containing a detectable amount of cocaine.
Narvaiz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations, Texas Department of Public Safety, Duval County Sheriff’s Department and Starr County High Intensity Drug Trafficking Area task force conducted the investigation. Assistant U.S. Attorney Liesel Roscher prosecuted the case.
Convicted handyman imprisoned for drive-by shooting at former clientRead the Press Release
CORPUS CHRISTI – A 44-year-old Corpus Christi resident has been sentenced for possessing a firearm as a convicted felon, announced U.S. Attorney Alamdar S. Hamdani.
Jason Jaime Merdes pleaded guilty Aug. 24.
U.S. District Judge Nelva Gonzales Ramos has now ordered Merdes to serve 120 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court heard that not only did Merdes possess a firearm, but he also used the gun in a drive-by shooting the day prior to his arrest. Two victims of the shooting provided testimony to the court, both describing how the shooting has affected their lives and how close the shots were to the rooms where their children were sleeping.
On May 15, a homeowner woke up to the sound of gunshots outside his residence at approximately 3 a.m. and alerted authorities. Upon investigation, law enforcement discovered shell casings in the street and multiple bullet holes in the home and garage.
The homeowner named Merdes as a possible suspect. The resident had previously hired Merdes to complete a home repair and sent legal notice to him after the job was not completed.
Neighborhood cameras showed footage of a suspect vehicle. Law enforcement observed the same vehicle leaving Merdes’ residence and made a traffic stop. He was wearing a holster on his belt. Authorities also found a gun under his seat.
A search of his residence revealed nine additional firearms. Of the ten firearms possessed by Merdes, one matched the shell casings found at the scene of the shooting, and two others were consistent with bullet fragments recovered.
As a convicted felon, Merdes is prohibited from possessing firearms or ammunition per federal law.
Merdes will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI and Corpus Christi Police conducted the investigation. Assistant U.S. Attorney Ashley Martin prosecuted the case.
Local felon heads to prison for possessing loaded firearm and drugsRead the Press Release
HOUSTON – A 28-year-old Houston resident has been sentenced to federal prison for illegally possessing two firearms while a felon and possession with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Sidney Rachal pleaded guilty July 6.
U.S. District Judge Hittner has now ordered Rachal to serve 105 months in federal prison to be immediately followed by three years of supervised release. Additionally, he agreed to forfeit the two firearms and magazines. At the hearing, the court heard that Rachal also possessed several other illegal substances, such as marijuana, alprazolam and other pills along with the material to distribute them. In handing down the sentence, Judge Hittner noted his criminal history.
On Jan. 21, 2022, authorities found Rachal’s motor vehicle stopped in the middle of the road. They took him into custody for driving while intoxicated and for an outstanding felony warrant.
Upon his arrest, a search of his person revealed two plastic bags weighing approximately 68 grams that contained cocaine as well as $22,905 in cash. Subsequently, a search of his vehicle also resulted in the discovery of two magazines and two firearms, one of which - a Glock Model 26 pistol - was loaded.
The investigation revealed Rachal had been previously convicted of aggravated robbery. As such, he is prohibited from possession firearms or ammunition per federal law.
Rachal will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez prosecuted the case.
Grain hauler driver sent to prison for illegally transporting peopleRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Florida man has been ordered to federal prison following his conviction for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
Joan Rincon pleaded guilty July 27.
U.S. District Judge David S. Morales has now ordered Rincon to serve 25 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard how Rincon had transported aliens in a grain hauler, including an unaccompanied minor. In handing down the sentence, the court remarked on the severity of the conduct and noted that the 15 aliens who had been transported in the grain hauler “deserved better.”
On May 7, Rincon approached the primary inspection lane at the U.S. Border Patrol (BP) checkpoint near Sarita. A K-9 soon alerted to the grain hauler he was driving.
Upon further inspection, authorities discovered 15 undocumented aliens inside the hauler as well as an additional five in the cabin. One individual described how hot it was inside the grain hauler. She claimed they were not allowed to take water, were all sweating profusely and were afraid they would pass out due to the heat.
Rincon was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Tyler Foster prosecuted the case.
Five charged in bank fraud and theft schemeRead the Press Release
HOUSTON – Five local men have been taken into federal custody on charges they conspired in a large-scale mail theft and credit card fraud scheme resulting in more than $1.2 million in losses, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Daniel Rios Sanchez, 35, and Omokehinde Muyiwa Oyegoke-Tewogbade, 62, both of Houston today. They are expected to make initial appearances before U.S. Magistrate Judge Christina Bryan at 2 p.m. Also charged and previously arrested were Dennis Christopher McGee, 41, Bradley Kane Zarco, 37, and Travis Castaneda Qawasmeh, 26, all also of Houston.
According to the indictment returned Oct. 4, all five obtained stolen U.S. mail containing new credit cards and bank statements for intended account holders. They allegedly called financial institutions to activate the stolen credit cards, increase credit limits and change information. The stolen credit cards were used to purchase goods, services, gift cards, cash and merchandise at retail stores, according to the charges.
Over a six-month period, they allegedly fraudulently activated at least 210 stolen credit cards and caused approximately $1,230,542.92 in losses.
All are charged with one count of conspiracy which carries a possible five-year prison term. If convicted of bank fraud, they could be sentenced to up to 30 years in prison, while a conviction of receipt of stolen mail carries a potential five years. All are also charged with aggravated identity theft which carries a mandatory two years in prison which must be served consecutively to any other prison term imposed. The charges also have potential fines of up to $1 million.
U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Karen Lansden 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.
Federal officer charged with bribery and attempted importation of cocaineRead the Press Release
LAREDO, Texas – A 35-year-old Customs and Border Protection (CBP) officer working at the Port of Entry in Laredo has been arrested, announced U.S. Attorney Alamdar S. Hamdani.
Emanuel Celedon is set to make his initial appearance before U.S. Magistrate Judge Christopher dos Santos at 9:40 a.m.
The indictment, returned Nov. 28, charges him with two counts of bribery and witnesses and two counts of attempted importation of cocaine.
The charges allege that from Oct. 1-17, Celedon accepted U.S. currency in exchange for allowing an individual to transport a substance he believed to be several kilograms of cocaine into the United States from Mexico through the Laredo Port of Entry without inspection. Celedon allegedly accepted another bribe for the same conduct from on or about Oct. 23-30.
If convicted, Celedon faces up to 15 years in prison as well as a possible $250,000 maximum fine for the bribery allegations, while the attempted importation of cocaine charges carry a mandatory minimum of five and up to 40 years in prison and up to a $5 million fine.
Department of Homeland Security - Office of Inspector General in conjunction with the Drug Enforcement Administration and CBP - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorneys Richard W. Bennett and Jennifer Day 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.