Southern District of Texas
Press releases recorded for this federal judicial district.
Mission man imprisoned for trafficking cocaine in truck dashboardRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old man has been ordered to federal prison for trafficking cocaine, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Juan Pablo Ramirez July 12 following a one-day trial for possession with the intent to distribute 5000 grams of cocaine.
U.S. District Judge Nelva Gonzales Ramos ordered Ramirez to serve 108 months in federal prison to be immediately followed by four years of supervised release. The court heard details about his criminal history including his conviction for distributing meth. In handing down the sentence, the court noted the amount of drugs involved in the offense as well as his prior federal conviction for drug trafficking.
On Jan. 19, Ramirez drove his truck to the Falfurrias Border Patrol (BP) checkpoint. At initial inspection, Ramirez consented to a z-portal examination of his truck. It revealed anomalies in his truck dashboard which turned out to be five packages of cocaine.
The street value of the cocaine was approximately $100,000.
Ramirez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol, Drug Enforcement Administration, Jim Wells Police Department and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorneys Ashley Martin, John Lamont and John Marck prosecuted the case.
Houston businessman charged with fraudRead the Press Release
HOUSTON – A 55-year-old Houston resident is now in custody for wire fraud in relation to a fraudulent loan scheme, announced U.S. Attorney Alamdar S. Hamdani.
Authorities took Michael Wayne Galvan into custody Oct. 12. He is expected to make his initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m.
The three-count indictment, returned Aug. 17, alleges Galvan owned and operated MWG Ventures LLC dba MGB Builders. He allegedly defrauded various individuals by making false representations to obtain loans from them.
Galvan solicited loans to purchase tile and granite from China and overseas for his construction business, according to the charges. However, the indictment alleges he did not use the loan money for that purpose and instead used some of it to repay loans and interest to other lenders.
If convicted, Galvan faces up to 20 years in prison and a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock 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.
Progreso official charged for drug traffickingRead the Press Release
BROWNSVILLE, Texas – A 40-year-old assistant city manager and school board president is now in custody on charges of conspiracy to possess with intent to distribute control substances, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Francisco aka Frank Javier Alanis today. He is expected to make his initial appearance before U.S. Magistrate Judge Ignacio Torteya Oct. 16 at 9 a.m.
A federal grand jury returned the three-count superseding indictment Oct. 3.
From January 2020 to March 20, 2022, Alanis allegedly conspired with Jose Rosbel Salas and others to possess with intent to distribute controlled substances, mainly cocaine.
If convicted, Alanis faces a mandatory minimum of 10 years up to life in federal prison as well as a possible $10 million maximum fine. The indictment also includes a notice of forfeiture related to the charges.
Salas, 42, Weslaco, has pleaded guilty for his role and is awaiting sentencing. Also charged are David Gomez Ramos, 34, and Gregorio Salinas, 52, both of Mercedes, and Juan Pablo Serrata, 48, Santa Rosa. They are currently in custody pending further criminal proceedings.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration, High Intensity Drug Trafficking Area task force, Border Patrol, Texas Department of Public Safety and Texas Rangers. Assistant U.S. Attorney Alejandra Andrade is prosecuting the case.
The investigation is part of the Organized Crime and Drug Enforcement Task Forces which identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Suburban man convicted of Bitstamp cryptocurrency fraud schemeRead the Press Release
HOUSTON – A 37-year-old Sugarland resident has pleaded guilty to 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 admitted he arranged a fraudulent wire of $520,000 from the victims checking account. Chen opened a Bitstamp cryptocurrency exchange account using the victim’s name and driver’s license without the consent or knowledge of the victim.
Chen used the Bitstamp account and other cryptocurrency accounts to convert the proceeds into Bitcoin and laundered the Bitcoin through numerous transactions.
U.S. District Judge Alfred H. Bennett accepted the plea and has set sentencing for Jan. 18, 2024. At that time, Chen faces a mandatory of two years in prison.
Chen was permitted to remain on bond pending that hearing.
FBI conducted the investigation. Assistant U.S. Attorneys Christian Latham and Belinda Beek are prosecuting the case.
Texas U.S. Attorneys unite against domestic violenceRead the Press Release
HOUSTON – All four U.S. Attorneys from Texas converged in the Southern District for a historic event to commemorate Domestic Violence Awareness Month (DVAM), honor Texas victims and survivors as well as salute the dedication of advocates, service providers, justice professionals, first responders and law enforcement.
U.S. Attorney Alamdar S. Hamdani was joined by fellow U.S. Attorneys Damien Diggs, Leigha Simonton and Jaime Esparza of the Eastern, Northern and Western Districts, respectively, along with Gloria Aguilera Terry, CEO of the Texas Council on Family Violence (TCFV), for this historic event. This is the first press conference to include all four Texas U.S. Attorneys.
The audience heard how domestic violence takes a toll on families and affects communities, both socially and economically. The consequences of domestic violence, dating violence and intimate partner violence have a long-lasting impact. One of four women and one of 10 men will experience domestic or sexual violence in their lifetime.
According to the TCFV Honoring Texas Victims 2022 analysis report, intimate partners killed 216 Texans in 64 Texas counties. This includes 179 women, 37 men and six LGBTQ+ victims. Of those, 96% of family members, friends and bystanders were killed with a firearm; 100% of those injured were shot; and 18 perpetrators had identified firearm prohibitions. The number of women a male partner killed has also nearly doubled in the last decade.
A crucial part of combatting domestic violence and reducing violent crimes includes enforcing federal firearm prohibitions.
The Texas U.S. Attorneys are committed to leveraging every federal resource available to go after abusers. They are collaborating with state and local partners by providing resources and initiative awareness.
“Through our novel and long-running Domestic Violence Initiative, out violent crime prosecutors and our partner agents at Bureau of Alcohol, Tobacco, Firearms and Explosives focus on investigating and prosecuting criminals who illegally possess guns and have a history of domestic abuse,” said Simonton. “This included those with previous assault conviction against an intimate partner.”
“We are going to the shelters and letting our folks at the shelters and all the local stakeholders know we have this initiative, particularly in the Northern and Eastern Districts,” said Diggs. “We are here to help and we want to help.”
"As U.S. Attorney for each of the four districts in Texas, it is our responsibility to deploy every available resource and forge strategic partnerships with local law enforcement and fellow prosecutors," said Esparza. "Our shared goal is to ensure victims have a clear path to safety and justice."
“At the end of the day the goal is to bring people out of the shadows, those who are being abused, to come seek help,” said Hamdani. “We want the public to know the chief federal law enforcement officers of this state stand united and firmly with domestic violence victims and survivors.”
If you or someone you know is a victim of domestic violence or need resources, please visit the resources page for the Office of Violence Against Women.
There is immediate help for domestic violence victims - Call Legal Aid for Survivors of Sexual Assault at 1-844-303-7233, Stop Abuse for Everyone at 1-512-267-7233 (or text 1-737-888-7233) or Texas Advocacy Project on their Hope Line at 1-800-374-4673 or their Pro Bono Attorney line at 1-800-374-4674.
Self-proclaimed king of Bissonett guilty of sex traffickingRead the Press Release
HOUSTON – A federal jury in Houston has convicted a 47-year-old man of sex trafficking four women by means of force and of taking three women across state lines to engage in prostitution, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately three hours before convicting Larry “Lavish” Lewis following a six-day trial.
Lewis used physical force and coercion to compel four women to engage in commercial sex in the Bissonnet street area of Houston and various cities in Texas and Louisiana. The jury also found he coerced them to cross state lines to engage in prostitution.
At trial, the victims detailed how Lewis recruited them on false promises of good money and a good life. Lewis confiscated the identification cards of two women and tightly controlled access to their hotel rooms. The women were completely dependent on him for food, lodging and basic necessities.
Lewis’ rules dictated where and how long they worked. The women were required to give Lewis all money they earned after commercial sex dates.
The victims detailed the consequences of breaking Lewis’ rules. He kicked one victim in the head into a window because he believed she disrespected him. During another incident, Lewis whipped the same victim with an electrical cord following an attempt to escape using his vehicle. Another victim described how Lewis broke her ribs and left bruises all over her body after receiving many beatings.
The jury ultimately did not believe defense claims that the women sought out Lewis because of his marketing expertise in the commercial sex industry.
U.S. District Chief Judge Randy Crane presided over the trial and set sentencing for Jan. 10, 2024. At that time, Lewis faces up to life in federal prison.
Lewis has been and will remain in custody pending sentencing.
Assistant U.S. Attorneys Sebastian A. Edwards and Christine Lu are prosecuting the case.
Texas Department of Public Safety and the Harris County District Attorney’s Office conducted the investigation with the assistance of the FBI as part of the Human Trafficking Rescue Alliance (HTRA).
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.
Mobile Cardiac PET Scan Provider and Founder to Pay $85 Million to Resolve Allegedly Unlawful Payments to Referring DoctorsRead the Press Release
Cardiac Imaging Inc. (CII), headquartered in Illinois, and its founder, owner, and CEO Sam Kancherlapalli, a resident of Florida, have agreed to pay a total of $85,480,000 to resolve False Claims Act allegations that they paid referring cardiologists excessive fees to supervise PET scans in violation of the Anti-Kickback Statute (AKS) and the Physician Self-Referral Law (Stark Law). CII agreed to pay $75 million, plus additional amounts based on future revenues, and Kancherlapalli agreed to pay $10,480,000. These settlements are based on their ability to pay.
“Healthcare providers that pursue patient referrals through illegal kickbacks and other unlawful financial arrangements will be held accountable,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to safeguard federal healthcare funds by rooting out financial relationships between healthcare providers and referring physicians that can corrupt medical decisionmaking and increase the cost of care.”
The United States alleged that between March 1, 2014, and May 31, 2023, CII and Kancherlapalli knowingly caused false or fraudulent claims to federal health care programs arising from violations of the AKS and the Stark Law. Specifically, with Kancherlapalli’s oversight and approval, CII allegedly paid kickbacks to referring cardiologists in the form of above-fair market value fees of $500 or more per hour, ostensibly for the cardiologists to supervise the PET scans for the patients they referred to CII. The United States alleged these fees substantially exceeded fair market value for the cardiologists’ services because CII paid the referring cardiologists for each hour CII spent scanning the cardiologists’ patients, including time the cardiologists were away from CII’s mobile scanning units providing care for other patients or were not even on site. CII’s fees also purportedly compensated the cardiologists for additional services beyond supervision that were not actually provided. CII purported to rely on a consultant’s fair market value analysis that the United States alleged CII knew was premised on fundamental inaccuracies about the services referring physicians provided and that the consultant ultimately withdrew.
“Paying illegal kickbacks to cardiologists so they refer patients undermines the integrity of federal healthcare programs and needlessly increases costs,” said U.S. Attorney Alamdar Hamdani for the Southern District of Texas. “Patients deserve care based on their medical need and not on a doctor or company’s financial interest or gain. This outcome emphasizes my office’s commitment to pursing justice, ensuring the public’s trust in the federal healthcare system and holding the corrupt accountable.”
“Illegal kickback payments not only corrupt the medical decision-making process but also cause harm and financial loss to Medicare and other federally funded healthcare programs,” said Special Agent in Charge Jason E. Meadows for the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG works closely with our law enforcement partners to root out and hold accountable those who put profit and personal gain ahead of legitimate medical services.”
In connection with the settlement, CII and Kancherlapalli entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG. The CIA requires, among other compliance provisions, that CII implement measures designed to ensure that arrangements with referring physicians are compliant with the AKS and the Stark Law. The CIA also requires that CII implement a centralized annual risk assessment and internal review process to identify and address the AKS and the Stark Law risks associated with arrangements and retain an Independent Review Organization to perform a systems and transactions review of arrangements.
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Lynda Pinto, a former billing manager at CII. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam action also raises claims against CII’s former President and part-owner Richard Nassenstein, which are not resolved in this settlement. The qui tam case is captioned U.S. ex rel. Pinto v. Cardiac Imaging, Inc., et al., No. 18-cv-2674 (S.D. Tex.). The relator’s share of the settlement has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas, with assistance from the HHS-OIG, the Defense Health Agency Office of Inspector General, the Railroad Retirement Board Office of Inspector General, and Veteran’s Affairs Office of Inspector General
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorneys Samuel R. Lehman and Jake M. Shields of the Justice Department's Civil Division, and Assistant U.S. Attorney Melissa M. Green for the Southern District of Texas.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Kancherlapalli Settlement CII SettlementCardiac imaging company and founder to pay historic $85M settlementRead the Press Release
HOUSTON – Cardiac Imaging Inc. (CII), headquartered in Illinois, and its founder, owner and CEO Sam Kancherlapalli, a resident of Florida, have agreed to pay a total of $85,480,000, to resolve False Claims Act allegations that they paid referring cardiologists excessive fees to supervise PET scans in violation of the Anti-Kickback Statute (AKS) and the Physician Self-Referral Law (Stark Law).
This is the largest single district civil settlement in the history of the Southern District of Texas (SDTX).
CII agreed to pay $75 million plus additional amounts based on future revenues, while Kancherlapalli agreed to pay $10,480,000. These settlements are based on their ability to pay.
“Paying illegal kickbacks to cardiologists so they refer patients undermines the integrity of federal healthcare programs and needlessly increases costs,” said Alamdar Hamdani, U.S. Attorney for the SDTX. “Patients deserve care based on their medical need and not on a doctor or company’s financial interest or gain. This outcome emphasizes my office’s commitment to pursing justice, ensuring the public’s trust in the federal healthcare system and holding the corrupt accountable.”
“Healthcare providers that pursue patient referrals through illegal kickbacks and other unlawful financial arrangements will be held accountable,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to safeguard federal healthcare funds by rooting out financial relationships between healthcare providers and referring physicians that can corrupt medical decision making and increase the cost of care.”
The United States alleged that between March 1, 2014, and May 31, 2023, CII and Kancherlapalli knowingly caused false or fraudulent claims to federal health care programs arising from violations of the AKS and the Stark Law. Specifically, with Kancherlapalli’s oversight and approval, CII allegedly paid kickbacks to referring cardiologists in the form of above-fair market value fees of $500 or more per hour, ostensibly for the cardiologists to supervise the PET scans for the patients they referred to CII. The United States alleged these fees substantially exceeded fair market value for the cardiologists’ services because CII paid the referring cardiologists for each hour CII spent scanning the cardiologists’ patients, including time the cardiologists were away from CII’s mobile scanning units providing care for other patients or were not even on site. CII’s fees also purportedly compensated the cardiologists for additional services beyond supervision that were not actually provided. CII purported to rely on a consultant’s fair market value analysis that the U.S. government contends CII knew was premised on fundamental inaccuracies about the services referring physicians provided and that the consultant ultimately withdrew.
“Illegal kickback payments not only corrupt the medical decision-making process but also cause harm and financial loss to Medicare and other federally funded healthcare programs,” said Special Agent in Charge Jason E. Meadows for the Department of Health and Human Services Office of Inspector General (DHHS-OIG). “DHHS-OIG works closely with our law enforcement partners to root out and hold accountable those who put profit and personal gain ahead of legitimate medical services.”
In connection with the settlement, CII and Kancherlapalli entered into a five-year Corporate Integrity Agreement (CIA) with DHHS-OIG. The CIA requires, among other compliance provisions, that CII implement measures designed to ensure that arrangements with referring physicians are compliant with the AKS and the Stark Law. The CIA also requires that CII implement a centralized annual risk assessment and internal review process to identify and address the AKS and the Stark Law risks associated with arrangements and retain an Independent Review Organization to perform a systems and transactions review of arrangements.
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Lynda Pinto, a former billing manager at CII. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam action also raises claims against CII’s former president and part-owner Richard Nassenstein, which are not resolved in this settlement. The qui tam case is captioned U.S. ex rel. Pinto v. Cardiac Imaging Inc., et al., No. 18-cv-2674 (S.D. Tex.). The relator’s share of the settlement has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the SDTX and the Justice Department’s Civil Division - Commercial Litigation Branch, Fraud Section, and with assistance from DHHS-OIG, Defense Health Agency OIG, Railroad Retirement Board OIG and Veteran’s Affairs OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Assistant U.S. Attorney Melissa M. Green handled the matter along with Commercial Litigation Branch Trial Attorneys Samuel R. Lehman and Jake M. Shields.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Zapata resident admits to defrauding public assistance programs and community membersRead the Press Release
LAREDO, Texas – A 45-year-old woman has entered a guilty plea to bank fraud, announced U.S. Attorney Alamdar S. Hamdani.
Mirza Lydia Rodriguez admitted to defrauding Falcon International Bank in a scheme that lasted five years.
In April 2020, law enforcement began investigating Rodriguez after receiving several reports of identity theft from Zapata residents. Authorities discovered Rodriguez claimed to be a tax preparer or could assist others with unemployment benefits. Multiple victims sought assistance from Rodriguez based those representations. Rodriguez collected and stored the victims’ personal identifying information (PII) at her residence.
In October 2021, authorities conducted a search and seized tax returns, W2s, bank records, birth certificates, Social Security cards and credit cards, all in other individuals’ names. Authorities also seized multiple spiral notebooks that contained approximately 1000 pages of PII.
Law enforcement obtained copies of Rodriguez’s bank records and discovered she received direct deposits from tax refunds, COVID-19 stimulus checks and Texas Workforce Commission (TWC) unemployment benefits. All deposits were meant for other individuals to include the victims who reported the theft.
During her plea, Rodriguez admitted to submitting a fraudulent application to Laredo Housing Authority (LHA) for public assistance in May 2015. She used her banking information and a relative’s PII on the application without permission. The application was approved, and Falcon International Bank, which maintains LHA’s accounts, began disbursing housing assistance payments to Rodriguez.
The bank disbursed 57 housing and 43 utility assistance payments totaling $32,715.
Additionally, Rodriguez received 16 deposits addressed to three individuals totaling $30,505. The victims admitted they used Rodriguez’s services for assistance with unemployment benefits and never received any money. The TWC issued letters to the victims indicating they owed thousands of dollars.
Part of Rodriguez’s guilty plea includes restitution payments to LHA and TWC.
U.S. District Judge Diana Saldaña accepted the plea and will sentence Rodriguez at a later date. At that time, she faces up to 30 years in federal prison.
Rodriguez has been and will remain in custody pending sentencing.
The FBI, Texas Department of Public Safety-Texas Rangers, Zapata County Sheriff’s Office and Housing and Urban Development-Office of Inspector General conducted the investigation with assistance from the Drug Enforcement Administration, Federal Deposit Insurance Corporation, TWC and the LHA.
Assistant U.S. Attorney Brian Bajew is prosecuting the case.
Tax preparer pleads guilty to falsifying returnsRead the Press Release
HOUSTON – A tax service operator has admitted to willfully preparing a false 2018 joint income tax return, announced U.S. Attorney Alamdar S. Hamdani.
As part of her plea, Lynettia Profit admitted that from 2016 to 2019, she operated JNL Tax Services in Houston. She admitted she often placed false education credits and Schedule C items on the returns she prepared, generating larger refunds to which her clients were not entitled.
According to the plea, she would make money by charging preparation fees that were deducted from refunds paid to clients.
Profit pleaded guilty to an information charging her with one count of aiding or assisting in the preparation of a false return. Specifically, she admitted to placing two false American Opportunity Tax Credits in the amount of $2,500 each on the joint return as well as $70,743 in false expenses that were listed on the Schedule C. This resulted in a tax loss of approximately $22,101.
Profit took responsibility of $336,847 in loss to the IRS and has agreed to pay that amount in restitution.
U.S. District Judge Lee H. Rosenthal will impose sentencing Jan. 24, 2024. At that time, she faces up to three years in prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Brad Gray and Andrew Swartz are prosecuting the case.
SDTX and RI USAOs jointly resolve False Claims Act violationRead the Press Release
HOUSTON – U.S. Attorney’s Offices in two districts have resolved a civil investigation into RPS Group Inc, a global professional services firm, that will result in a recovery of over $465,000, announced U.S. Attorney Alamdar S. Hamdani and Zachary A. Cunha, U.S. Attorneys for the Southern District of Texas and Rhode Island, respectively.
RPS Group Inc. held several contracts with the federal government. Between June 2011 and July 2020, in order to maximize revenue and avoid hitting budgetary ceilings, the company unlawfully engaged in a practice of moving recorded labor hours between government projects with different funding sources, according to the allegations in the investigation. RPS also allegedly submitted invoices for work that was not performed on government contracts and falsely inflated employee billing rates. These practices occurred across numerous government contracts and resulted in the submission of false invoices to multiple government agencies, according to the allegations.
The conduct was brought to the government’s attention both through an RPS corporate disclosure and through complaints four former employees had raised. As part of a civil settlement, RPS Group Inc. will pay $465,293.
At the time of the conduct alleged in this matter, RPS Group’s headquarters in the United States were located in Houston with a subsidiary in North Kingstown, Rhode Island. Another company has since acquired it.
Assistant U.S. Attorneys Jill Venezia and Bethany Wong of the Southern District of Texas and Rhode Island, respectively, litigated this matter.
Department of Commerce - Office of Inspector General (OIG), Army Criminal Investigation Division, Coast Guard Investigative Service, General Services Administration – OIG, National Aeronautics and Space Administration – OIG, Department of Defense Criminal Investigative Service, Environmental Protection Agency – OIG, Department of Interior - OIG, and Naval Criminal Investigative Service.
Hamdani to serve on AG Advisory CommitteeRead the Press Release
HOUSTON – Attorney General Merrick B. Garland has appointed U.S. Attorney Alamdar S. Hamdani to serve on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC).
The AGAC was created in 1973 and advises the Attorney General on matters of policy, procedure and management impacting the offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys on essential matters facing the Department of Justice.
“U.S. Attorneys work every day throughout the country to advance our mission of upholding the rule of law, keeping our country safe, and protecting civil rights,” said Garland. “I am grateful for the perspective the newest members of the committee will provide on behalf of federal prosecutors across the country and the communities they serve.”
“It is an honor to be chosen to serve on the AGAC,” said Hamdani. “I look forward to learning from and serving with my fellow AGAC members as we advise the Attorney General and the Department of Justice’s leadership.”
U.S. Attorney Hamdani will serve alongside chair Damian Williams of the Southern District of New York, vice chair Gary Restaino for the District of Arizona and newest members Alexander M.M. Uballez for the District of New Mexico, Breon Peace for the Eastern District of New York, Kenneth Parker for the Southern District of Ohio, Natalie K. Wight for the District of Oregon, Eric G. Olshan for the Western District of Pennsylvania and Christopher R. Kavanaugh for the Western District of Virginia as well as Ryan Buchanan of the Northern District of Georgia, Gregory K. Harris of the Central District of Illinois, Andrew M. Luger of the District of Minnesota and Darcie N. McElwee of the District of Maine.
President Biden nominated Hamdani to serve as U.S. Attorney for this district Nov. 14, 2002, upon the recommendation of U.S. Senators John Cornyn and Ted Cruz. The full Senate unanimously confirmed his appointment Dec. 6, 2022. He was sworn in Dec. 12, 2022.
As U.S. Attorney, Hamdani is the chief federal law enforcement officer in the Southern District of Texas (SDTX), responsible for prosecuting and defending the interests of the United States in the seventh largest district in the nation.
Hamdani has been with the Department of Justice since 2008. Most recently, he has been an Assistant U.S. Attorney (AUSA) with the SDTX, primarily responsible for the investigation and prosecution of national security and official corruption crimes. From 2010 to 2014, Hamdani served in the Counterterrorism Section of the Department of Justice’s National Security Division, holding the position of deputy chief from 2012 to 2014. Prior to that, he was an AUSA in the Eastern District of Kentucky.
The SDTX typically prosecutes more cases against more defendants than most other U.S. Attorney’s Offices nationwide, representing 43 counties and nine million people and covering 44,000 square miles. This district currently comprises seven U.S. District Court divisions with federal district courts in Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo. The U.S. Attorney's office, headquartered in Houston, has branch offices in all seven divisions.
Woman Pleads Guilty in $1.6M Counterfeit U.S. Savings Bond SchemeRead the Press Release
A California woman pleaded guilty yesterday to her role in a counterfeit savings bond scheme.
According to court documents, Summer Marie Creech, 45, of Fontana, conspired with others to create, pass, and transfer counterfeit Department of the Treasury Series I savings bonds at financial institutions in the Southern District of Texas and elsewhere. Creech forged counterfeit Series I savings bonds using genuine bond numbers and then sent them to her co-conspirators, who negotiated them at financial institutions and shared the profits with Creech. To pass the counterfeit bonds, the co-conspirators used means of identification belonging to others without their knowledge or consent. During the conspiracy, Creech and others passed over $1.6 million in counterfeit Series I savings bonds.
Creech pleaded guilty to conspiracy to make, pass, and transfer counterfeit U.S. securities and passing counterfeit U.S. securities. She is scheduled to be sentenced on Dec. 20 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
One of Creech’s co-conspirators, Daniel Alan Lewis, previously pleaded guilty to conspiracy to make, pass, and transfer counterfeit U.S. securities and passing counterfeit U.S. securities. He is scheduled to be sentenced on Oct. 12.
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 Craig S. Larrabee of Homeland Security Investigations (HSI) made the announcement.
HSI Rio Grande Valley Office is investigating the case, with assistance from the U.S. Secret Service, Department of the Treasury’s Office of Inspector General, and U.S. Attorney’s Office for the Central District of California.
Trial Attorney David D. Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Edgardo J. Rodriguez for the Southern District of Texas are prosecuting the case.
Medical facility settles claim alleging failure to provide effective communication services to deaf individualsRead the Press Release
HOUSTON – A local rehabilitation center has agreed to a settlement under the Americans with Disabilities Act (ADA) to ensure it provides appropriate auxiliary aids and services to individuals who are deaf or hearing impaired when providing medical services, announced U.S. Attorney Alamdar S. Hamdani.
In November 2021, authorities received a complaint alleging Park Manor of CyFair failed to provide effective communication to an individual who is deaf and uses American Sign Language (ASL) as his primary means of communication. Park Manor did not provide a qualified ASL interpreter, as the ADA defines, to communicate information related to his medical care, symptoms and treatment plan.
Under the settlement agreement, Park Manor will revamp its training for new and existing employees regarding interpreter services, have specific and uniform criteria for determining when an interpreter is needed and what interpreter services are adequate. They will also keep detailed records of these decisions and accommodations.
“My office is committed to protecting the rights of people who have not traditionally had a voice,” said Hamdani. “Having equal access to health care services - which includes the ability to effectively communicate with your health care provider - is a fundamental right. It must be accessible to all. If not, my office will investigate and bring enforcement actions against you to ensure compliance with the ADA.”
Assistant U.S. Attorney Myra Siddiqui handled the matter.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against individuals with disabilities by health care providers. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department of Justice - Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities - access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. Visit the ADA for more information and to access these publications. ADA Complaints may be filed Department of Justice or within the Southern District of Texas.
Laredo ophthalmologist charged in repetitive harmful eye procedure fraud schemeRead the Press Release
LAREDO, Texas - A 54-year-old Austin resident has been indicted for health care fraud and money laundering, announced U.S. Attorney Alamdar S. Hamdani.
Dr. Michael Hochman made his initial appearance today and is set for arraignment Oct. 12 before U.S. Magistrate Judge Christopher dos Santos.
A federal grand jury returned the five-count indictment Sept. 27.
According to court documents, Hochman is an ophthalmologist who owned and operated Michael A. Hochman P.A. and Laredo Laser & Surgery Ltd. in Laredo.
The charges allege Hochman falsely diagnosed vulnerable patients with ophthalmological diseases and various degenerative eye conditions. Hochman allegedly directed optometry staff to conduct fraudulent, repetitive and excessive medical procedures on patients to maximize profits.
According to the indictment, Hochman caused Medicare and other health care benefit programs to remit payment for millions of dollars in proceeds into various corporate and personal bank accounts.
The false and fraudulent claims Hochman allegedly submitted to Medicare, Medicaid and Tricare totaled $402,536,174. As a result of the false and fraudulent claims, Medicare, Medicaid and Tricare paid approximately $13,317,914, according to the charges.
The indictment also alleges Hochman used the proceeds of the fraud scheme to purchase a private airplane, luxury vehicles, high-end antiques, collectible coins and other luxury items.
If convicted, Hochman faces up to 10 years in prison for one count of health care fraud. He also faces four counts of money laundering, which carries a penalty of up to 20 years imprisonment. All charges also carry a possible $250,000 maximum fine.
The FBI, Texas Attorney General’s Office - Medicaid Fraud Control Unit, Defense Criminal Investigative Services, Department of Health and Human Services – Office of Inspector General (OIG) and the Veteran Affairs – OIG conducted the investigation. Assistant U.S. Attorneys Tina Ansari, Cynthia Villanueva, Tyler White and Grace Murphy 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.
Husband and wife sent to prison for $8M health care fraudRead the Press Release
HOUSTON – Two Missouri City home health agency owners have been ordered to federal prison after admitting to defrauding millions from Medicare, announced U.S. Attorney Alamdar S. Hamdani.
Vincent Nwabeke, 72, pleaded guilty April 20 to false statements in a health care matter, while Victoria Nwabeke, 70, admitted to conspiracy to commit health care fraud Sept. 16, 2019.
U.S. District Judge Alfred H. Bennett has now ordered Victoria Nwabeke to serve 48 months in federal prison followed by three years of supervised release. She must also pay $8,523,917.11 in restitution to Medicare. Vincent Nwabeke was previously sentenced to 12 months and one day of imprisonment and ordered to pay $1,084,996 in restitution to Medicare.
The Nwabekes co-owned Vital Ambulatory Healthcare Inc. from 2012 to 2018, Victoria Nwabeke obtained patient referrals by paying kickbacks to marketers and patients and bribing physicians to authorize medically unnecessary home health services for Vital patients. She also admitted to billing Medicare over $8 million in fraudulent claims for home health services.
Vincent Nwabeke was Vital’s Chief Financial Officer. He admitted that in 2018 he filed a fraudulent cost report to Medicare attempting to disguise the kickback payments his wife made as legitimate business expenses.
The Nwabekes were 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, Department of Health and Human Services‐Office of Inspector General and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson and DOJ Trial Attorney Drew Pennebaker are prosecuting the case.
Supplier for local meth dealers lands in federal prisonRead the Press Release
GALVESTON, Texas - A 28-year-old resident of Webster has been sentenced in a meth conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Omar Lopez III pleaded guilty Feb. 15 to conspiracy to possess with intent to distribute five or more grams of meth or 50 or more grams of a mixture or substance containing a detectable amount of meth.
U.S. District Judge Jeffrey Brown has now ordered him to serve a total of 174 months in federal prison.
The investigation focused upon a group of meth distributors and their source of drugs who operated in Galveston County.
Lopez worked within the drug trafficking organization by supplying meth others had distributed.
He will report 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 Galveston County Sheriff’s Office and Galveston Police Department. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
Member of counterfeit savings bonds ring convictedRead the Press Release
BROWNSVILLE, Texas - A 45-year-old California woman has pleaded guilty to conspiring to make, pass and transfer counterfeit U.S. savings bonds and passing counterfeit savings bonds.
Summer Marie Creech and others conspired to create counterfeit Department of the Treasury Series I savings bonds. They then passed the counterfeit bonds at financial institutions using other people’s identities and split the proceeds.
As part of her plea, Creech admitted that beginning in or around 2019 she learned how to acquire genuine Series I savings bonds numbers. She then used computer software and printers to forge counterfeit bonds. She then sent the bonds to co-conspirators who would pass them at financial institutions and share the proceeds with her.
During the course of the conspiracy, Creech admitted she and others passed over $1.6 million in counterfeit Series I savings bonds.
U.S. District Judge Roland Olvera accepted the plea and set sentencing for Dec. 20. At that time, Creech faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Creech was permitted to remain on bond pending sentencing.
One of Creech’s co-conspirators, Daniel Alan Lewis, 58, California, previously pleaded guilty to conspiracy to make, pass and transfer counterfeit U.S. securities and passing counterfeit U.S. securities. He is scheduled to be sentenced Oct. 12.
Homeland Security Investigations conducted the investigation with the assistance of the Secret Service, Department of the Treasury - Office of Inspector General and the U.S. Attorney’s Office for the Central District of California. Assistant U.S. Attorney Edgardo J. Rodriguez is prosecuting the case along with Trial Attorney David D. Hamstra of the Justice Department’s Criminal Division.
Corpus man gets hefty sentence after selling controlled substances via FacebookRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old local man has been ordered to federal prison for drug trafficking and weapons charges, announced U.S. Attorney Alamdar S. Hamdani.
Raul Cedillo Jr. pleaded guilty Jan. 3, 2022, to possession of meth with intent to distribute and possession of firearms in furtherance of drug trafficking.
U.S. District Judge David S. Morales has now ordered Cedillo to serve 154 months in prison to be immediately followed by five years of supervised release.
The investigation began after law enforcement saw several posts on his personal Facebook page appeared to be advertising various controlled substances for sale, complete with photographs of Cedillo’s “inventory.” The posts included prices for meth by quantity, such as “"$55 balls, $80 qrtrs, $ 150 half, $275 ounce."
The Facebook posts led to the September 2021 search of Cedillo’s apartment where law enforcement seized approximately three kilograms of meth, 1.3 kilograms of pills, six firearms and a large amount of U.S. currency.
Cedillo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department conducted this Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.
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 Brittany Jensen prosecuted the case.
Social Security employee admits creating fake children’s profiles to steal government moneyRead the Press Release
BROWNSVILLE, Texas – A 38-year-old Harlingen resident and former claims specialist with the Social Security Administration (SSA) has pleaded guilty to theft of government property, announced U.S. Attorney Alamdar S. Hamdani.
Lee Marvin Nichols admitted to creating fictitious profiles for two children that did not exist. He linked the profiles to a recently deceased man and disabled woman living in Mexico in an attempt to create a survivor benefits application.
Nichols ensured that the debit cards for the children’s benefits were sent to the address of someone with whom he was associated. He would then use the debit cards to make regular withdrawals at ATMs. When making those withdrawals, he attempted to disguise himself by using hats pulled down over his face, sunglasses, balaclavas and other clothing to conceal his appearance.
In addition, the IRS issued economic stimulus payments of $1,400 to each fictitious child.
As part of his plea, Nichols took responsibility for over $75,000 in loss to the federal government. He also agreed to pay $82,516 in restitution to the SSA and $2,800 in restitution to the IRS.
U.S. District Judge Rolando Olvera will impose sentencing Dec. 27. At that time, Nichols faces up to 10 years in federal prison and a $250,000 maximum fine.
The SSA-Office of Inspection General, Treasury Inspector General for Tax Administration and IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Brad Gray, Ben Sandel, Andrew Swartz and Jose Esquivel are prosecuting the case.
Leader of $20M COVID-19 relief fraud ring sent to prisonRead the Press Release
HOUSTON –The head of a multimillion-dollar COVID-19 relief fraud ring and six of his co-conspirators have been sentenced for fraudulently obtaining more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Amir Aqeel, 54, Houston, was sentenced Oct. 2 to 15 years in prison for leading the conspiracy and at least 14 other individuals to submit more than 75 fraudulent PPP loan applications in 2020. In the applications, they falsified the number of employees and the average monthly payroll expenses of the applicant businesses and submitted fraudulent bank records and/or fake federal tax forms in support of the PPP loan applications. Some were paid large kickbacks in exchange for their assistance with the false and fraudulent PPP loan applications.
“Amir Aqeel engaged in one of the largest PPP conspiracies in the country,” said U.S. Attorney Alamdar S. Hamdani. “He and his cohorts stole millions from the public fund, using that money to buy houses, a Porsche, even a Lamborghini, all while taking advantage of programs intended to help those struggling during the pandemic. These sentences send a strong message to scammers looking for a quick and easy buck in the Southern District of Texas; you need to look elsewhere.”
“During a time of unprecedented national peril, these defendants took advantage of a pandemic and stole millions of dollars in federal funds intended to help businesses keep their employees paid and their doors open,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The sentences demonstrate that the Department and law enforcement have and will continue to hold individuals accountable for committing fraud on the government.”
“I salute the prosecutors and agents who exposed this fraud ring, brought these defendants to justice, and worked to return stolen funds to the American people,” said Justice Department Director of COVID-19 Fraud Enforcement Michael Galdo. “The Department will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud to justice and use all appropriate tools to recover stolen pandemic relief funds.”
The conspirators also laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. These fake paychecks were cashed at Fascare International Inc. dba Almeda Discount Store (Almeda), a company Azeemuddin owned. In total, more than 1,100 fake paychecks for more than $3 million in fraudulent PPP loan proceeds were cashed at Almeda.
“SBA-OIG will aggressively root out bad actors in SBA’s pandemic response programs and bring them to justice,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region. “These sentences demonstrate there are significant consequences for conspiring to fraudulently access SBA programs and steal from taxpayers. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“One unfortunate aspect of the pandemic relief programs has been how many people and institutions, including the Federal Home Loan Banks, were negatively affected by unscrupulous criminals who targeted a program meant to help all Americans at a critical time,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region. “We are proud to work with our partner agencies to investigate and stamp out these schemes.”
“While the rest of our country was reeling from the effects of an unprecedented global health crisis, these individuals conspired to fraudulently obtain and launder millions of taxpayer dollars from an emergency fund that was intended to help keep struggling businesses and employees afloat,” said Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) Houston. “Working in conjunction with our federal law enforcement partners, we were able to uncover their scheme and hold them accountable for exploiting these government programs for their own profit.”
Federal agents also executed 45 seizure warrants in conjunction with the case and have seized, among other items, a residence, a Porsche and a Lamborghini purchased with illegally obtained funds.
“Today, Aqeel and six of his co-conspirators in this case were brought to justice for their roles in a fraudulent scheme that swindled millions of dollars from the Paycheck Protection Program, which was created to assist struggling businesses during the COVID-19 pandemic,” said Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region. “The FDIC-OIG, working with our law enforcement partners, will continue to pursue and hold accountable those who took advantage of these programs and threatened to undermine the integrity of our nation’s banking system.”
“The Treasury Inspector General for Tax Administration continues to aggressively pursue those who endeavor to defraud programs afforded to the American people under the CARES Act,” said Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) Gulf States Field Division. “We appreciate the efforts of the Justice Department and our law enforcement partners in this effort.”
Five others had previously pleaded guilty and were sentenced today for their roles in the loan fraud scheme. Khalid Abbas, 57, Richmond, and Richard Reuth, 60, Spring, both received two and a half years in prison, while Rifat Bajwa, 54, Richmond, Siddiq Azeemuddin, 44, Naperville, Illinois, and Pardeep Basra, 54, Houston, were sentenced to three years, two years and three years and five months in prison, respectively.
A federal jury convicted Abdul Fatani, 57, Richmond, of one count of conspiracy to commit wire fraud, one count of wire fraud and one count of money laundering in February. He was sentenced to three years in prison.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG and TIGTA are investigating the cases.
Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the cases along with Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy and Spencer Ryan of the Criminal Division’s Fraud Section.
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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Leader of $20M COVID-19 Relief Fraud Ring Sentenced to 15 YearsRead the Press Release
The head of a multimillion-dollar COVID-19 relief fraud ring and six of his co-conspirators were sentenced for fraudulently obtaining more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Amir Aqeel, 54, of Houston, was sentenced yesterday to 15 years in prison and ordered to forfeit $5,583,111.48 for leading the conspiracy, and for conspiring with at least 14 other individuals to submit 75 fraudulent PPP loan applications in 2020. In the applications, the defendants falsified the number of employees and the average monthly payroll expenses of the applicant businesses and submitted fraudulent bank records and fake federal tax forms in support of the PPP loan applications. Aqeel paid some of the defendants large kickbacks in exchange for their assistance with the false and fraudulent PPP loan applications.
“During a time of unprecedented national peril, these defendants took advantage of a pandemic and stole millions of dollars in federal funds intended to help businesses keep their employees paid and their doors open,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The sentences demonstrate that the Department and law enforcement have and will continue to hold individuals accountable for committing fraud on the government.”
“I salute the prosecutors and agents who exposed this fraud ring, brought these defendants to justice, and worked to return stolen funds to the American people,” said Director of COVID-19 Fraud Enforcement Michael Galdo of the Justice Department. “The Department will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud to justice and use all appropriate tools to recover stolen pandemic relief funds.”
“Amir Aqeel engaged in one of the largest PPP conspiracies in the country,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “He and his cohorts stole millions from the public fund, using that money to buy houses, a Porsche, even a Lamborghini, all while taking advantage of programs intended to help those struggling during the pandemic. These sentences send a strong message to scammers looking for a quick and easy buck in the Southern District of Texas; you need to look elsewhere.”
The defendants also laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. The defendants cashed these fake paychecks at Fascare International Inc., dba Almeda Discount Store (Almeda), a company that Siddiq Azeemuddin owned. In total, the defendants cashed more than 1,100 fake paychecks for more than $3 million in fraudulent PPP loan proceeds at Almeda.
“SBA-OIG will aggressively root out bad actors in SBA’s pandemic response programs and bring them to justice,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region. “These sentences demonstrate there are significant consequences for conspiring to fraudulently access SBA programs and steal from taxpayers. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“One unfortunate aspect of the pandemic relief programs has been how many people and institutions, including the Federal Home Loan Banks, were negatively affected by unscrupulous criminals who targeted a program meant to help all Americans at a critical time,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region. “We are proud to work with our partner agencies to investigate and stamp out these schemes.”
“While the rest of our country was reeling from the effects of an unprecedented global health crisis, these individuals conspired to fraudulently obtain and launder millions of taxpayer dollars from an emergency fund that was intended to help keep struggling businesses and employees afloat,” said Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) Houston. “Working in conjunction with our federal law enforcement partners, we were able to uncover their scheme and hold them accountable for exploiting these government programs for their own profit.”
Federal agents also executed 45 seizure warrants in conjunction with the case and have seized, among other items, a residence, a Porsche, and a Lamborghini purchased with illegally obtained funds.
“Today, Aqeel and six of his co-conspirators in this case were brought to justice for their roles in a fraudulent scheme that swindled millions of dollars from the Paycheck Protection Program, which was created to assist struggling businesses during the COVID-19 pandemic,” said Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region. “The FDIC-OIG, working with our law enforcement partners, will continue to pursue and hold accountable those who took advantage of these programs and threatened to undermine the integrity of our nation’s banking system.”
“The Treasury Inspector General for Tax Administration continues to aggressively pursue those who endeavor to defraud programs afforded to the American people under the CARES Act,” said Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) Gulf States Field Division. “We appreciate the efforts of the Justice Department and our law enforcement partners in this effort.”
Five others had previously pleaded guilty and were sentenced today for their roles in the loan fraud scheme. Khalid Abbas, 57, and Rifat Bajwa, 54, both of Richmond, Texas, were sentenced to two and a half years and three years in prison, respectively. Azeemuddin, 44, of Naperville, Illinois, was sentenced to two years in prison. Pardeep Basra, 54, of Houston, was sentenced to three years and five months in prison. Richard Reuth, 60, of Spring, Texas, was sentenced to two and a half years in prison.
In February, a federal jury convicted Abdul Fatani, 57, of Richmond, Texas, of one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of money laundering. He was sentenced today to three years in prison.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the cases.
Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy, and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson for the Southern District of Texas are prosecuting the cases.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Houston airport trespasser sent to prisonRead the Press Release
HOUSTON – A 36-year-old man has been ordered to prison for illegally entering an aircraft area in violation of security requirements to commit a felony therein, announced U.S. Attorney Alamdar S. Hamdani.
Allan Leon Goins III pleaded guilty May 24.
U.S. District Judge Lee Rosenthal has now ordered Goins to serve 12 months and a day in federal prison to be immediately followed by three years of supervised release. The court also ordered him to pay $2,276.48 in restitution.
Goins admitted he willfully breached and entered the restricted airport operations area at Houston Bush Intercontinental airport on Nov. 2, 2021. The restricted area services domestic and foreign air carriers. He evaded posted security procedures, fencing and restricted areas.
Additionally, Goins stole an Atlantic Aviation Inc. uniform, utility cart and caused damage to the cart. He evaded security and authorized personnel efforts to apprehend him causing a pursuit to ensue for over an hour in dark and foggy conditions. Authorities had to shut down airport runways, taxiways and the West complex operations for approximately two hours.
Ultimately, law enforcement located and arrested Goins, at which time he said they, “should have shot him.” On Nov. 5, 2021, authorities conducted a search on articles of clothing found in the area Goins was apprehended which revealed a loaded A Walther PPS 9mm caliber pistol.
Goins will remain in custody pending transfer to a U.S. Bureau of Prison facility to be determined in the near future.
The FBI conducted the investigation with the assistance of Houston Airport System, Houston Police Department and Houston Fire Department. Assistant U.S. Attorney Joe Porto prosecuted the case.
Five more guilty for roles multi-million dollar COVID-19 relief fraud conspiracyRead the Press Release
HOUSTON - Five Texas men have pleaded guilty to their participation in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans that the guaranteed by the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Muhammad Anis, 55, Nishant Patel, 41, Harjeet Singh, 49, all of Houston, and Arham Uddin, 27, and Ammas Uddin, 30, both of Richmond, engaged in a conspiracy to defraud the SBA and certain SBA-approved PPP lenders by submitting false and fraudulent PPP loan applications. All five also assisted in laundering the fraudulently obtained PPP loan funds by supplying co-conspirators with blank, endorsed checks, which were made payable to people posing as employees of the companies that received the PPP loan, but who were in fact not employees. These fake paychecks were then cashed at check cashing stores that other members of the conspiracy or others controlled.
As part of the scheme, Anis obtained a false and fraudulent PPP loan in the amount of approximately $483,333; Patel obtained a false and fraudulent PPP loan in the amount of approximately $474,993; Singh obtained two false and fraudulent PPP loans for a total of approximately $937,379; Arham Uddin obtained a false and fraudulent PPP loan in the amount of approximately $491,664; and Ammas Uddin obtained a false and fraudulent PPP loan in the amount of approximately $498,415.
Anis, Patel, Singh, Arham Uddin and Ammas Uddin each pleaded guilty to one count of conspiracy to commit wire fraud. They are scheduled to be sentenced Jan. 4, 2024. At that time, each face up to five years in prison.
In addition to these five, one other individual was convicted at trial for his involvement in the scheme and 15 other individuals have pleaded guilty to their involvement in the loan fraud scheme.
The SBA Office of Inspector General (OIG), Federal Housing Finance Agency OIG, Homeland Security Investigations, Federal Deposit Insurance Corporation – OIG and Treasury Inspector General for Tax Administration conducted the investigation.
Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the cases along with Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy and Spencer Ryan of the Criminal Division’s Fraud Section.
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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Five Men Plead Guilty to Roles in Multimillion-Dollar COVID-19 Relief Fraud ConspiracyRead the Press Release
Five Texas men pleaded guilty today to their participation in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Muhammad Anis, 55, Nishant Patel, 41, Harjeet Singh, 49, all of Houston, and Arham Uddin, 27, and Ammas Uddin, 30, both of Richmond, engaged in a conspiracy to defraud the SBA and certain SBA-approved PPP lenders by submitting false and fraudulent PPP loan applications. All five defendants also assisted in laundering the fraudulently obtained PPP loan funds by supplying co-conspirators with blank, endorsed checks, which were made payable to people posing as employees of the companies that received the PPP loan, but who were in fact not employees. These fake paychecks were then cashed at check cashing stores that other members of the conspiracy controlled.
As part of the scheme, Anis obtained a false and fraudulent PPP loan in the amount of approximately $483,333; Patel obtained a false and fraudulent PPP loan in the amount of approximately $474,993; Singh obtained two false and fraudulent PPP loans for a total of approximately $937,379; Arham Uddin obtained a false and fraudulent PPP loan in the amount of approximately $491,664; and Ammas Uddin obtained a false and fraudulent PPP loan in the amount of approximately $498,415.
Anis, Patel, Singh, Arham Uddin, and Ammas Uddin each pleaded guilty to one count of conspiracy to commit wire fraud. They are scheduled to be sentenced on Jan. 4, 2024, and each face a total maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In addition to these five defendants, one other individual was convicted at trial for his involvement in the scheme, and 15 other individuals have pleaded guilty to their involvement in the loan fraud scheme.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region, Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), Special Agent in Charge Mark B. Dawson of Homeland Security Investigations (HSI) Houston, Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region, and Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the case.
Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy, and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson for the Southern District of Texas are prosecuting the cases.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Tax preparer receives jail timeRead the Press Release
HOUSTON – The owner of Montalvo Tax Service has been ordered to federal prison, announced U.S. Attorney Alamdar S. Hamdani.
Jean Montalvo pleaded guilty June 30 to one count of making and subscribing a false return.
U.S. District Judge David Hittner varied upward and ordered Montalvo to serve 36 months in federal prison to be immediately followed by one year of supervised release. At the hearing, the court heard how she suffered from numerous medical conditions and was sorry for her actions. However, Judge Hittner imposed the longer sentence due to her criminal history and the loss amount in the case. The court also ordered the defendant to pay $508,350 in restitution.
As part of her plea, Montalvo admitted she began filing tax returns under her business in Angleton in 2010. She charged a fixed fee and would either collect her from her clients’ income return or from a direct payment.
From 2014 through 2016, Montalvo willfully failed to report a portion of the amount she received for customer fees. As a result of her scheme, the IRS suffered a loss of $197,136.
She also filed approximately 58 federal income tax returns for the calendar years 2014 through 2017 which contained false and fraudulent items. Some of those included charitable contributions, qualified fuel property, business meals, business mileage and entertainment expenses. Based on these false and fraudulent filings, there was an additional tax harm of $311,214.
Montalvo was taken into custody after the sentencing where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and James Hu are prosecuting the case.
Repeat felon sentenced for illegally possessing loaded assault rifleRead the Press Release
HOUSTON – A 33-year-old Houston resident and repeat violent felon has been ordered to prison for illegally possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Joseph Terrell Goody pleaded guilty May 25.
U.S. District Judge Alfred H. Bennett has now ordered Goody to serve 57 months in federal prison to be immediately followed by two years of supervised release.
On Sept. 26, 2020, law enforcement stopped Goody for traffic violations. At that time, they found him to be holding an assault rifle loaded with 30 rounds of ammunition.
A struggle ensued, but authorities were able to subdue detain Goody and secure the weapon.
The investigation revealed Goody has served multiple state prison sentences for felony convictions including robbery, burglary of a habitation, continuous assault of a family member and possession of a controlled substance. As such, he is prohibited per federal law of possessing firearms or ammunition.
Goody will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Houston Police Department conducted the investigation. Assistant U.S. Attorney Stuart Tallichet prosecuted the case.
Man who arranged cross-country drug shipment sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 49-year-old Alamo resident has been sentenced to prison for selling eight kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Daniel Zintura Sr. pleaded guilty May 25 to possession with intent to distribute cocaine.
U.S. District Judge Nelva Gonzales Ramos has how ordered Zintura to serve 151 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding Zintura’s criminal history which included a prior federal drug trafficking conviction for which he was on supervised release at the time he committed this offense. In handing down the sentence, the court noted Zintura’s repeated criminal conduct, the large amount of narcotics involved in his case and his prior conviction for the same offense. Judge Ramos also noted how drugs can destroy communities.
In March 2022, Zintura arranged for the transportation of eight kilograms of cocaine across the United States to Maryland for him. On March 17, 2022, he met another individual at a local home improvement store to hand off the cocaine to be transported to Houston. Law enforcement immediately arrested him and took him into custody.
Zintura will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Hospice Medical Director Sentenced for $150M Hospice Fraud SchemeRead the Press Release
A hospice medical director was sentenced yesterday to four years and two months in prison for his role in a scheme that involved the submission of over $150 million in false and fraudulent claims to Medicare for hospice and other health care services.
According to court documents, from 2009 to 2018, Jesus Virlar-Cadena, 52, served as the medical director of the Merida Group, a large health care company that operated dozens of locations throughout Texas. Evidence at the trial of co-defendants Rodney Mesquias, Henry McInnis, and Francisco Pena, showed that the Merida Group marketed their hospice programs through a group of companies known as the Merida Group. They enrolled patients with long-term incurable diseases, such as Alzheimer’s and dementia, as well as patients with limited mental capacity who lived at group homes, nursing homes, and in housing projects. In some instances, Merida Group marketers falsely told patients they had less than six months to live. They also sent chaplains to the patients based on the false pretense they were near death.
In order to bill Medicare for these services, the Merida Group hired Virlar and other medical directors, but made payment of their medical director fees contingent upon an agreement to certify unqualified patients for hospice. In addition to regular medical director payments, Virlar received luxury trips, bottle service at exclusive nightclubs, and other perks in exchange for his certification of unnecessary hospice patients. In exchange for these illegal kickbacks, Virlar himself certified over $18 million in unnecessary hospice services as part of the over $150 million conspiracy.
Mesquias was previously sentenced to 20 years in prison and McInnis was previously sentenced to 15 years in prison. Pena passed away before sentencing.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar Hamdani for the Southern District of Texas, Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
HHS-OIG, the FBI, and Texas Health and Human Services Commission investigated the case.
Principal Assistant Chief Jacob Foster and former Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz for the Southern District of Texas prosecuted the case.
Five sent to prison in nationwide fraud scheme targeting elderly victimsRead the Press Release
HOUSTON – All people charged in a conspiracy to commit mail fraud have been ordered to federal prison, announced U.S. Attorney Alamdar S. Hamdani.
Indian citizens MD Azad, 26, Sumit Kumar Singh, 30, Himanshu Kumar, 26, MD Hasib, 28, and Anirudha Kalkote, 26, admitted they participated in a fraud ring from 2019-2020 which operated out of various cities including Houston. All illegally resided in Houston.
U.S. District Judge Kenneth Hoyt has now ordered Hasib to serve 78 months in federal prison. The court previously sentenced Singh, Kumar and Kalkote each also to 78 months, while Azad, the highest ranking member of the conspiracy in the United States, received 188 months. Not U.S. citizens, all are expected to face removal proceedings following the prison terms.
At the respective hearings, the court heard evidence from victim impact letters that described the suffering that almost 200 victims, many of whom were elderly, had endured because of this fraud. Some victims lost their life savings. Others were threatened when they refused to continue to pay and described continuing fear and ongoing anxiety after being watched through the video cameras on their home computers. In handing down the sentences, the court noted that the victim letters sounded like a “horror show.”
“Anxiety, fear, humiliation and devastating financial loss are what these victims endured,” said Hamdani. “The criminals were relentless, preying on the elderly, often revictimizing their targets. These scammers from India didn’t care what impact their scheme had; all they cared about was money and a lot of it. Thankfully, the court imposed a just sentence for each of these ruthless fraudsters, bringing the victims peace and closure.”
“The sentences imposed for the defendants in this case should serve as a harbinger for anyone attempting to defraud and manipulate our nation’s elderly. Prison awaits you,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation (CI). “This was an effort that combined the investigative skills of multiple law enforcement agencies that partnered together to uphold our commitment to the Elder Justice Initiative. We will continue to protect our seniors.”
The scheme targeted elderly victims throughout the United States and elsewhere.
The ring tricked and deceived victims using various ruses and instructed them to send money via wire through a money transmitter business such as Western Union or MoneyGram, by buying gift cards and providing to the fraudsters or by mailing cash to alias names via FedEx or UPS.
Part of the scheme involved fraudsters contacting victims by phone or via internet sites for computer technical support and directing victims to a particular phone number. Once victims contacted the fraudsters, they were told various stories such as they were communicating with an expert that needed remote access to their computer in order to provide technical support services. The fraudsters then gained access to victims’ personal data and bank and credit card information.
Victims typically paid a fee to conspirators for the fake technical support but were later told they were due a refund. Through paying for “technical support” or through the “refund” process, the ring gained access to the victim’s bank account(s) and credit cards and manipulated the accounts to make it appear the victim was paid too large a refund due to a typographical error. Victims were then instructed to reimburse the ring by various means.
Victims were sometimes re-victimized multiple times and threatened with bodily harm if they did not pay.
All five individuals will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, U.S. Postal Inspection Service and IRS CI conducted the investigation with assistance from Homeland Security Investigations, Fort Bend County Sheriff’s Office and other local law enforcement agencies throughout the United States including the Sheriff’s Office and Commonwealth’s Attorney’s Office of Augusta County, Virginia. Assistant U.S. Attorneys Belinda Beek and Quincy Ollison prosecuted the case.
The case is brought as a part of the Elder Justice Initiative. Its goal is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults.
In March 2020, the U.S. Department of Justice launched National Elder Fraud Hotline to help combat fraud against older Americans and provide services to victims. If you or someone you know is a victim of elder fraud, we encourage you to call the National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311).
The hotline is open Monday through Friday from 10 a.m. to 6 p.m. eastern time. Services are available for speakers of English, Spanish and other languages.
Undercover jaguar cub deal results in Big Cat Act chargesRead the Press Release
McALLEN, Texas – An Alamo couple have been arrested for selling protected wildlife in the first case filed under The Big Cat Act, announced U.S. Attorney Alamdar S. Hamdani.
Legal permanent resident Rafael Gutierrez-Galvan, 29, and his wife Deyanira Garza, 28, made their initial appearances in federal court in McAllen Sept. 27.
According to the criminal complaint, Gutierrez-Galvan had sold a margay cub Aug. 24 for $7,500 in a local Academy Sports and Outdoors parking lot.
On Sept. 26, Gutierrez-Galvan then attempted to sell a jaguar cub to the same individual. He allegedly instructed his wife to bring a case of cash from their residence to the location. However, law enforcement conducted a traffic stop before she could arrive and discovered the money.
Neither Gutierrez-Galvan or Garza possess a license to buy, sell, trade or transport exotic animals such as margays and jaguars.
Authorities recovered both animals.
The Big Cat Act was enacted in December 2022 and prohibits the importation, transportation, sale and possession of prohibited wildlife species. A jaguar is a prohibited species. Additionally, the Endangered Species Act prohibits the importation, exportation, sale and transportation of threatened and endangered species. Jaguars are listed as an endangered species.
If convicted, Gutierrez-Galvan and Garza face up to five years in federal prison and a possible $20,000 maximum fine.
Fish and Wildlife Service and Homeland Security Investigations conducted the investigation with the assistance of Texas Parks and Wildlife and the Houston and San Antonio Zoos. Assistant U.S. Attorney Devin V. Walker is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Members of deadly alien smuggling ring convictedRead the Press Release
BROWNSVILLE, Texas – Several members of a deadly alien smuggling ring have pleaded guilty to conspiring to smuggle illegal aliens resulting in multiple deaths, announced U.S. Attorney Alamdar S. Hamdani.
Juan Manuel Tena, 40, Pharr, Julia Isairis Torres, 37, Israel Torres Jr., 34, and Jose Refugio Torres, 27, all of Roma, conspired to transport illegal aliens from the Rio Grande Valley to destinations within the United States. As a result of that conspiracy, a total of eight aliens were killed and two others seriously injured.
All four were all involved in the attempted smuggling of illegal aliens in March 2019 by motor vehicle from the Rio Grande Valley to Houston. During this failed attempt, a vehicle rolled over and caused the deaths of four non-U.S. citizens with serious injuries to one other.
Tena and others also attempted to smuggle illegal aliens in February 2022 by watercraft from South Padre Island to the Corpus Christi area. The watercraft capsized, resulting in the deaths of four other non-U.S. citizens and serious injury to another.
The victims included migrants from Honduras, Mexico, Guatemala, El Salvador and Ecuador as well as a 17-year-old boy from Ecuador and a pregnant woman from Honduras.
“From the shores of Corpus Christi to the backroads of the Rio Grande Valley, Tena and his associates left a dark path strewn with dead migrants. Eight people, including a pregnant mother, lost their lives due to their actions,” said Hamdani. “Like so many others, the victims in this case wanted to come to America for a better life, but Tena and his associates took advantage of them for profit. Now they are going to federal prison. Let this case be an example to anyone thinking about smuggling people in the United States, especially using dangerous means. You will be prosecuted. You will be held accountable.”
“Not only did this human smuggler conspire to undermine our nation’s immigration laws for his own personal profit, but eight migrants lost their lives because of his callous and reckless disregard for those whom entrusted him,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI). “HSI remains committed to working with our law enforcement partners, and utilizing our unique investigative authorities, to bring those responsible for horrible tragedies like this to justice.”
As part of his plea, Tena admitted to coordinating and recruiting co-conspirators to transport illegal aliens using watercraft and vehicles in both March 2019 and February 2022. Tena also agreed to the forfeiture of several properties in Roma and Pharr that he admitted to purchasing with the proceeds he received from the conspiracy.
As part of their pleas, Julia Torres and Jose Torres both admitted to their involvement in the March 2019 failed alien smuggling attempt.
On July 26, Israel Torres also pleaded guilty to his involvement in the March 2019 incident.
U.S. District Judge Roland Olvera accepted the pleas and set sentencing for Dec. 20. At that time, all four face up to life in federal prison and a possible $250,000 maximum fine.
Tena has been and will remain in custody pending sentencing.
Julia Torres, Israel Torres and Jose Torres were permitted to remain on bond pending their hearings.
HSI conducted the investigation with the assistance of Border Patrol; Coast Guard; Customs and Border Protection’s Air and Marine Operations; police departments in Port Mansfield and South Padre Island; Texas Rangers; Texas Game Wardens; sheriff’s offices in Kenedy, Duval and Willacy Counties; and the Willacy County District Attorney’s Office. Assistant U.S. Attorneys Edgardo J. Rodriguez and David A. Lindenmuth are prosecuting the case.
Local man charged with orchestrating investment fraud schemeRead the Press Release
HOUSTON – A 38-year-old Mont Belvieu resident has been taken into federal custody on charges he diverted victims’ monies for his personal use, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury returned the indictment Sept. 27 against Carl Spence.
Spence allegedly ran an investment business called AEI Financial from his residence. According to the charges, Spence lured victims by promising he would invest their funds and obtain 20-30% returns on investment. He also allegedly falsely represented to investors that he was registered with the SEC.
Spence would divert victims’ money and use it to pay for his own personal expenses or to pay previous investors, according to the charges. In addition, although the victims’ money had been significantly (or nearly completely) depleted, Spence would allegedly produce fraudulent account statements showing that the victims’ accounts had grown.
Spence faces one count of wire fraud which carries a penalty of up to 20 years imprisonment and a possible $250,000 maximum fine, upon conviction.
The FBI conducted the investigation. Assistant U.S. Attorneys Thomas Carter and Brad Gray 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.
Local man admits to fondling minor while producing child pornographyRead the Press Release
HOUSTON - A 38-year-old resident of Montgomery County has pleaded guilty to sexual exploitation of a child and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Authorities identified James Aubrey Zachary Wasson after discovering over 500 files of child pornography he had uploaded between March 2019 and March 2021. One folder contained a series of 51 photographs, all taken on a single date in December 2020. Some showed him in a state of sexual arousal next to a minor female child. He also appeared to be fondling her under her clothing.
A subsequent search of Wasson’s cell phone confirmed it was the device he used to produce the series of sexually explicit photographs. The cell phone also contained other files of child pornography saved between May 2020 and May 2021.
The minor victim also identified Wasson and recalled when he took the photographs.
U.S. District Judge George C. Hanks accepted the plea and set sentencing for Jan. 4, 2024. At that time, Wasson faces a minimum of 15 and up to 30 years in prison for sexual exploitation of a child, as well as up to 10 years for possession of child pornography.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Stephanie Bauman 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.
Hospice medical director sentenced for $150M hospice fraud schemeRead the Press Release
McALLEN, Texas - A 52-year-old San Antonio man has been sentenced for his role in a scheme that involved the submission of over $150 million in false and fraudulent claims to Medicare for hospice and other health care services.
Jesus Virlar-Cadena pleaded guilty June 4, 2019.
U.S. District Judge Rolando Olvera has now ordered Virlar-Cadena to serve 50 months in federal prison to be immediately followed by one year of supervised release. The court also ordered Virlar-Cadena to pay $9 million in restitution and $9 million in forfeiture.
From 2009 to 2018, Virlar-Cadena served as the medical director of the Merida Group, a large health care company that operated dozens of locations throughout Texas. He was a physician but the Texas Medical Board later suspended his medical license.
A federal jury convicted co-conspirators Rodney Mesquias, 53, San Antonio, Henry McInnis, 52, Harlingen, and Francisco Pena in October 2019.
Evidence at the trial showed that the Merida Group marketed their hospice programs through a group of companies. They enrolled patients with long-term incurable diseases such as Alzheimers and dementia as well as patients with limited mental capacity who lived at group homes, nursing homes and in housing projects. In some instances, Merida Group marketers falsely told patients they had less than six months to live. They also sent chaplains to the patients based on the false pretense they were near death.
In order to bill Medicare for these services, the Merida Group hired Virlar and other medical directors but made payment of their medical director fees contingent upon an agreement to certify unqualified patients for hospice. In addition to regular medical director payments, Virlar received luxury trips, bottle service at exclusive nightclubs and other perks in exchange for his certification of unnecessary hospice patients. In exchange for these illegal kickbacks, Virlar himself certified over $18 million in unnecessary hospice services as part of the over $150 million conspiracy.
Mesquias and McInnis were previously sentenced to 20 and 15 years in prison, respectively. Pena is now deceased.
Virlar-Cadena was permitted to remain on bond pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Department of Health and Human Services – Office of Inspector General (OIG), FBI and Texas Health and Human Services Commission – Office of Inspector General investigated the case.
Assistant U.S. Attorney Andrew Swartz prosecuted the case along with Principal Assistant Chief Jacob Foster and former Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section.
Fraudster sent to prison for back-to-back fraud schemeRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Orange Grove woman has been ordered to federal prison following her convictions of fraud and identity theft, announced U.S. Attorney Alamdar S. Hamdani.
Katrina Theiss Freitag pleaded guilty to Fraudulent use of a Social Security number on April 5, 2022. Prior to sentencing Freitag committed additional fraudulent conduct and plead guilty to aggravated identity theft April 17.
U.S. District Judge Drew B. Tipton has now ordered Freitag to serve 80 months in federal prison to be immediately followed by three years of supervised release for fraudulent use of a Social Security number. She will also receive two years for aggravated identity theft which must be served consecutively for a total 104-month sentence. At the hearing, the court heard that Freitag was involved in an additional fraud scheme while working for another employer and statements from victims of Freitag’s schemes.
From 2012 to 2017, Freitag worked for a commercial insulation company as a bookkeeper who handled day-to-day business activities including finances. She obtained unauthorized cash advances using the companies’ receivables as collateral. Freitag used the owner’s Social Security number and signed the owner’s name to the cash advance documents without authorization. She executed five unauthorized secure merchant agreements over seven months. The company incurred a loss of $580,000 because of Freitag’s scheme.
Freitag pleaded guilty April 5, 2022, to two counts of fraudulent use of Social Security number in a loan scheme. After this plea, she was permitted to remain on bond.
Freitag then began working for a Corpus Christi pawn shop as a bookkeeper. The manager discovered several suspicious credit card transactions on the owner’s credit card account. The investigation revealed Freitag made unauthorized online charges for groceries, payments to a tax preparation company and her personal cell phone bill. There was an also a forged company check electronically deposited into Freitag’s bank account. Freitag was remanded into custody after this scheme and pleaded guilty to aggravated identity theft related to use of the pawn shop owner’s credit card account without authorization.
Freitag will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the Orange Grove Police Department. Assistant U.S. Attorneys Robert D. Thorpe Jr. and John Marck prosecuted the case.
Former state trooper gets 43 years for sexually assaulting womenRead the Press Release
HOUSTON – A 34-year-old former state trooper will now see the other side of a prison cell after coercing two women into providing him with oral sex while on duty, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for three hours before returning a guilty verdict against Lee Ray Boykin Jr. following a four-day trial Jan. 13.
U.S. District Judge George C. Hanks has now ordered Boykin to serve 516 months in federal prison to be immediately followed by five years of supervised release. In imposing the sentence, the court called Boykin a “predator” who had not shown remorse for his crimes. “Your crocodile tears do not impress me,” said Hanks. Boykin attempted to blame the victims, but the court said it was “repugnant,” saying that he had destroyed their lives.
“Lee Ray Boykin turned traffic stops into sexual assaults,” said U.S. Attorney Hamdani. “He used his badge and all the power it afforded to force himself onto two vulnerable women. Boykin targeted victims he believed would not report him and even thought he got away with it. He was wrong. This sentence sends a message that we will pursue anyone that poses a threat to our citizens, no matter what position they hold. And thanks to the hard work of law enforcement, the position Boykin now holds is inmate.”
At trial, the jury determined Boykin had deprived two separate victims of their right to bodily integrity while acting in his capacity as a state trooper with the Texas Department of Public Safety (DPS) in that he committed aggravated sexual abuse as to one victim and kidnapping as to the other victim. He was also found guilty of two counts of destruction, alteration or falsification of records in a federal investigation.
One of the victims explained how Boykin had taken her to a secluded parking lot after being ordered out of her friend’s car following a traffic stop. Once there, Boykin falsely accused her of being a prostitute, threatened to take her to jail and forced her to perform oral sex on him. Afterwards, he told her to run while placing his hand on his gun.
The jury heard evidence that showed Boykin’s DNA in the parking lot. The victim’s DNA was also found on Boykin’s underwear.
The second victim testified that Boykin ordered her out of her friend’s car and placed her into Boykin’s vehicle. Boykin falsely told her she had outstanding traffic warrants. He then took this victim to the same secluded parking lot, where she performed oral sex on him. Three days later, Boykin attempted to get her into his trooper car again, but she was able to escape.
The jury also heard about statements Boykin had made to authorities. Regarding the sexual assault of the first victim, he said he thought he “got away with it” and knew he should not have done it. He said he “just wanted to try.”
The jury did not believe defense claims and ultimately found him guilty.
Boykin has been and will remain in custody.
The Houston Police Department and Texas Rangers conducted the investigation with the assistance of FBI and DPS. Assistant U.S. Attorneys Sebastian A. Edwards and Kate A. Suh are prosecuting the case.
South Texan sentenced for summer smuggling of 70 in semiRead the Press Release
CORPUS CHRISTI, Texas – A 60-year-old Mission resident has been ordered to federal prison following his conviction for transportation of an undocumented alien, announced U.S. Attorney Alamdar S. Hamdani.
Thomas Taylor Charlton pleaded guilty May 2.
U.S. District Judge David S. Morales has now ordered Charlton to serve 51 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding the incident that described 70 people locked in a trailer with only hatchets to exit.
Before imposing the sentence, Judge Morales also heard additional evidence regarding his history which includes a conviction for aggravated battery.
On July 10, 2022, Charlton arrived at the Javier Vega Jr. Border Patrol (BP) checkpoint. He claimed he was hauling chili peppers, but a K-9 alerted to the trailer. Law enforcement had to use bolt cutters to remove the lock and gain access to the trailer. They also found hatchets located in the trailer.
Upon further investigation, authorities discovered 70 people illegally present in the United States concealed behind pallets of produce in the locked refrigerated trailer portion of the tractor trailer Charlton was driving.
They also found a handheld walkie talkie in the trailer and cab of the tractor, both on the same frequency that would allow communication between the tractor and trailer.
The key to the trailer was found in the cab.
Charlton will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorneys Liesel Roscher and Patrick Overman prosecuted the case.
Smuggler sentenced for transporting five people in jet skisRead the Press Release
CORPUS CHRISTI, Texas – A South Texas man has been ordered to federal prison for smuggling aliens in two personal watercrafts, announced U.S. Attorney Alamdar S. Hamdani.
Fernando Cerda Jr., 26, Mission, pleaded guilty July 3.
U.S. District Judge David Morales has now ordered Cerda to serve 48 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court viewed images of how the undocumented aliens were sealed in the hollowed engine compartments of two jet skis. In handing down the sentence, the court noted the egregious manner in which the migrants were transported.
On April 24, Cerda approached the Falfurrias checkpoint towing two jet skis. A K-9 soon alerted to them. Law enforcement conducted an inspection and discovered five aliens concealed inside the watercrafts. The aliens reported they feared for their lives while they were trapped in the jet skis.
Cerda 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. Assistant U.S. Attorney John Lamont prosecuted the case.
Physician and two pharmacists charged for $170M fraud schemeRead the Press Release
HOUSTON - A 13-count indictment was unsealed today charging two pharmacists and a physician for their roles in a multimillion-dollar health care fraud, kickback and money laundering scheme.
A federal grand jury in Houston returned the 13-count indictment Sept. 7, which was unsealed today.
According to court documents, Shalondria Simpson, 45, Houston, is a pharmacist who owned and operated two pharmacies in Houston: Advance Pharmacy and TruCare Pharmacy. Simpson’s twin sister, physician Lashondria Simpson-Camp, 45, Allen, allegedly referred prescriptions to Advance and TruCare in exchange for illegal kickbacks and bribes. Shayla Bryant, 38, Houston, was a pharmacist and Advance and TruCare’s business manager.
Between 2016 and 2022, Simpson, Simpson-Camp and Bryant allegedly conspired with others to submit false and fraudulent claims to the Department of Labor’s Office of Workers’ Compensation Program (DOL-OWCP) for high reimbursing drugs that were often medically unnecessary and induced by kickbacks and bribes. DOL-OWCP administers workers’ compensation benefits on behalf of the Federal Employee’s Compensation Act (FECA),
Further, Simpson, Simpson-Camp, Bryant and others allegedly conspired to pay and receive these kickbacks. Simpson and Bryan allegedly paid illegal kickbacks and bribes, often through shell entities or in cash, directly to physicians like Simpson-Camp, a clinic owner, a medical assistant and other marketers. In total, Simpson’s pharmacies allegedly submitted approximately $170 million in fraudulent claims to FECA through DOL-OWCP.
To conceal the scheme and disguise its proceeds, Simpson also allegedly conspired to launder the proceeds of the criminal activity through financial transactions greater than $10,000. According to the indictment, after learning of the investigation, Simpson attempted to cover her tracks by converting criminal proceeds to cash and transferring funds among over 10 bank accounts and a cryptocurrency wallet. She also allegedly solicited others’ help in liquidating assets and concealing her ownership and control of those assets.
The indictment charges Simpson, Simpson-Camp and Bryant with one count of conspiracy to defraud the United States and pay and receive health care kickbacks and one count of conspiracy to commit health care fraud. Simpson is also charged with five counts of paying health care kickbacks, one of which also charges Bryant. The indictment further charges Simpson with conspiracy to launder monetary instruments and five counts of money laundering. If convicted, Simpson, Simpson-Campq and Bryant each face a maximum penalty of five years in prison for conspiracy to defraud the United States and pay and receive health care kickbacks as well as 10 years in prison for conspiracy to commit healthcare fraud. Simpson and Bryant each face a maximum penalty of 10 years in prison for each count of paying health care kickbacks. Simpson faces a maximum penalty of 20 years in prison for conspiracy to launder money instruments and 10 years for each count of money laundering.
The U.S. Postal Service - Office of Inspector General (USPS-OIG), Department of Labor – OIG, FBI and Veterans Affairs – OIG conducted the investigation.
Assistant U.S. Attorney Brandon Fyffe and Trial Attorneys Devon Helfmeyer and Andrew Tamayo of the Criminal Division’s Fraud Section are prosecuting 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, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 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.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Physician and Two Pharmacists Charged for $170M Fraud SchemeRead the Press Release
A 13-count indictment was unsealed today charging two pharmacists and a physician for their roles in a multimillion-dollar health care fraud, kickback, and money laundering scheme.
According to court documents, Shalondria Simpson, 45, of Houston, is a pharmacist who owned and operated two pharmacies in Houston: Advance Pharmacy (Advance) and TruCare Pharmacy (TruCare). Simpson’s twin sister, physician Lashondria Simpson-Camp, 45, of Allen, Texas, allegedly referred prescriptions to Advance and TruCare in exchange for illegal kickbacks and bribes. Shayla Bryant, 38, of Houston, was a pharmacist and Advance and TruCare’s business manager.
Between 2016 and 2022, Simpson, Simpson-Camp, and Bryant allegedly conspired with others to submit false and fraudulent claims to the Department of Labor’s Office of Workers’ Compensation Program (DOL-OWCP), which administered workers’ compensation benefits on behalf of the Federal Employee’s Compensation Act (FECA), for high reimbursing drugs that were often medically unnecessary and induced by kickbacks and bribes. Further, Simpson, Simpson-Camp, Bryant, and others allegedly conspired to pay and receive these kickbacks. Simpson and Bryan allegedly paid illegal kickbacks and bribes, often through shell entities or in cash, directly to physicians like Simpson-Camp, a clinic owner, a medical assistant, and other marketers. In total, Simpson’s pharmacies allegedly submitted approximately $170 million in fraudulent claims to FECA through DOL-OWCP.
To conceal the scheme and disguise its proceeds, Simpson also allegedly conspired to launder the proceeds of the criminal activity through financial transactions greater than $10,000. According to the indictment, after learning of the investigation, Simpson attempted to cover her tracks by converting criminal proceeds to cash, and transferring funds among over ten bank accounts and a cryptocurrency wallet. She also allegedly solicited others’ help in liquidating assets and concealing her ownership and control of those assets.
The indictment charges Simpson, Simpson-Camp, and Bryant with one count of conspiracy to defraud the United States and pay and receive health care kickbacks and one count of conspiracy to commit health care fraud. Simpson is also charged with five counts of paying health care kickbacks, one of which also charges Bryant. The indictment further charges Simpson with conspiracy to launder monetary instruments and five counts of money laundering. If convicted, Simpson, Simpson-Camp, and Bryant each face a maximum penalty of five years in prison for conspiracy to defraud the United States and pay and receive health care kickbacks, and 10 years in prison for conspiracy to commit healthcare fraud. Simpson and Bryant each face a maximum penalty of 10 years in prison for each count of paying health care kickbacks. Simpson faces a maximum penalty of 20 years in prison for conspiracy to launder money instruments and 10 years for each count of money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG), Acting Special Agent in Charge Casey Howard of the Department of Labor Office of Inspector General (DOL-OIG), Acting Special Agent in Charge David L. Martinez of the FBI Houston Field Office, and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.
The USPS-OIG, DOL-OIG, FBI, and VA-OIG are investigating the case.
Trial Attorneys Devon Helfmeyer and Andrew Tamayo of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brandon Fyffe for the Southern District of Texas are prosecuting 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, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former agent admits to scheme to illegally employ non-immigrants for American companyRead the Press Release
LAREDO, Texas – A former Border Patrol (BP) agent and another individual have entered a guilty plea to employing illegal aliens by fraudulently obtaining immigration permits, announced U.S. Attorney Alamdar S. Hamdani.
Ricardo Gonzalez, 40, and Alex Lopez, 33, Laredo, entered a guilty plea to conspiracy to defraud the United States.
Gonzalez operated a company known as Gonmor Transportation. Lopez was the office manager. Gonzalez was also an active BP agent.
The multi-year scheme involved the company recruiting and hiring non-immigrants to work as commercial truck drivers, but then paid them less due to their citizenship status. As part of the scheme, Gonzalez’s company would provide these new hires with a letter to take to one of the ports of entry in Laredo. The letter had information claiming the driver was working for a Mexican trucking company and was requesting an I-94 travel permit so he could enter the United States, pick up cargo and return to Mexico.
As part of their respective pleas, each admitted to knowing the drivers were not working for this Mexican company, yet still providing the letter to assist in obtaining the I-94 permit. Once these drivers obtained the permit, Gonmor paid them to transport cargo within the United States, in violation of the permit terms.
A Mexican driver with a valid non-immigrant visa who works for a Mexican transportation company and is paid by them in Mexico may obtain an I-94 at one of the ports of entry. With it, the driver can travel with a load into the United States, go beyond the checkpoints to his or her final destination then return to Mexico. An I-94 does not allow the holder to work in the United States or for a U.S.-based company.
Gonzalez and Lopez admitted to knowing the people they were hiring to drive trucks for the company were not allowed to work in the United States, that the company paid these people less because of their status and that the I-94 permit did not authorize these individuals to work in the United States.
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, each faces up to five years in federal prison and a possible $250,000 maximum fine.
Gonzalez and Lopez were permitted to remain on bond pending sentencing.
Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
12 charged in connection with violent motorcycle gang assaultRead the Press Release
HOUSTON – A dozen members of the Homietos Outlaw Motorcycle Gang are now in custody on racketeering and firearms charges related to a violent assault of another motorcycle club in Houston, announced U.S. Attorney Alamdar S. Hamdani.
Law enforcement took Joseph Gomez aka Tequila, 37, Sugarland, into custody late Friday, Sept. 22. He is expected to make his initial appearance before U.S. Magistrate Judge Yvonne Ho today at 2 p.m.
Authorities took Houston residents Joe Barrera aka LJ, 35; Joe Rios aka Jo Daddy, 47, Edgar Hinojosa aka Charro Bean, 38, William Espinoza, 47, Mario Gomez aka Gator, 50, Morgan Cooper aka Coop, 49, and Moises Soriano aka Oso, 41, into custody Sept. 21, after which they appeared in federal court. Law enforcement also arrested Rudolph Lopez aka Yao, 36, Fort Worth.
They all remain in custody pending further criminal proceedings.
Ricardo Quinones aka Scooter, 36, Houston; Raymond Burnett aka Ray Ray, 36, Alvin; Jesse Mulrein aka Fort Worth G, 36, Dallas, were previously in custody and expected to make their appearances in the near future.
“We took action,” said Hamdani. “These alleged gangs are built on a foundation of violence, with members and associates committing acts designed to protect the power and reputation of the organization. Whether on the east side, Sunnyside or within the confines of a motorcycle club, we will pursue anyone who allegedly commits brutal and violent acts to maintain status in a gang.”
“The arrests of 12 alleged Homieto outlaw motorcycle gang members are the result of a multi-year FBI Houston-led interagency investigation and are the first significant indictments against these types of criminal groups in the Houston area,” said Acting Special Agent in Charge David Martinez of the FBI Houston field office. “This criminal organization is accused of crimes that keep victims, community members and rivals in a perpetual state of fear through intimidation and violence. Law enforcement and the public have had enough of the violence, ruthlessness and disregard for law and order that this gang is alleged to have perpetrated.”
A federal grand jury returned the indictment on September 13, 2023, which was unsealed upon the arrests.
The charges allege that on Sept. 19, 2020, members of the Homietos gang and their associates were celebrating their fifth-year anniversary at the Sterling Banquet Hall in Houston. One member had allegedly invited three members of the Tattoo Crue motorcycle club. Shortly after their arrival, several Homietos members violently assaulted the Tattoo Crue club members, according to the indictment.
Two victims allegedly required hospitalization.
The indictment alleges the Homietos Outlaw motorcycle gang is a violent criminal organization with chapters spread throughout the state of Texas and in other locations in the United States. They allegedly recruit members and associates who are predominantly convicted felons, a great number of whom are current or former Houstone Tango Blast gang members. In order to protect the power, reputation and territory of Homietos, members and associates are required to commit acts of violence, threats of violence and intimidation, according to the charges. These members and associates allegedly maintain and enhance their status in Homietos by participating in such violent acts.
All 12 are charged with assault with a dangerous weapon in aid of racketeering and conspiracy to do so and discharging a firearm during a crime of violence. Barrera, Cooper and Burnett are also charged with felon in possession of a firearm while Hinojosa faces allegations of possession of a firearm with an obliterated serial number.
The assault charge carries up to 20 years in prison as a possible penalty, while the conspiracy charges carry a potential three-year-sentence. If convicted of the discharging a firearm count, they also face a minimum of 10 years and up to life which must be served consecutively to any other prison term imposed.
All charges also carry possible fines of up to $250,000.
The FBI and the Texas Department of Criminal Justice - Office of Inspector General conducted the investigation with the assistance of the Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives, sheriff’s offices in Harris and Montgomery Counties, Houston Police Department and U.S. Marshals Service. Assistant U.S. Attorneys John M. Lewis and Brian J. Hrach 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.
Z-43 pleads guilty to trafficking tons of cocaine into United StatesRead the Press Release
HOUSTON – A former high-ranking member of the Los Zetas cartel has entered a guilty plea to a conspiracy to import tons of cocaine into the United States, announced U.S. Attorney Alamdar S. Hamdani.
Jose Maria Guizar-Valencia, 43, of Tulare, California, is considered one of the last numbered Los Zetas and was a regional leader in charge of the Guatemala/Central America region.
“Today the cartels were put on notice,” said Hamdani. “After a long and hard fought battle, we brought another ruthless cartel leader to justice. Jose Maria Guizar-Valencia may have thought he was untouchable, but now he feels the reach, power and persistence of the Department of Justice and the Drug Enforcement Administration (DEA). He once led the drug activity in a large swath of Central America. Those days are over, and the residents of the Southern District of Texas are now safer.”
“The guilty plea of Guizar-Valencia is another example of our success in the fight against Mexican drug cartels operating in the United States and exemplifies the commitment of the DEA and our law enforcement partners to battle against global drug trafficking organizations,” said DEA Special Agent in Charge Daniel C. Comeaux, Houston Division. “DEA continues our pursuit to hold accountable high ranking members of Mexican drug cartels who profit from the sale of dangerous drugs to our citizens, and threaten the security of the United States.”
In 2012, law enforcement began an investigation into the illegal drug trafficking activities of the Los Zetas. At the time, they were a Mexican-based drug cartel in control of much of the Mexico/U.S. border to include the Texas corridor.
The investigation revealed Los Zetas had expanded their control of the drug trade to Central and South America. This enabled them to control the importation of drugs from countries including Guatemala, Honduras and Colombia into the Republic of Mexico and then into the United States.
The investigation revealed that from 2007 to 2014, Guizar-Valencia was responsible for controlling a large portion of Guatemala and for coordinating the transportation of multi-ton quantities of cocaine from Colombia to Guatemala, Guatemala to Mexico and then from Mexico into the United States for further distribution. Guizar-Valencia also managed the receipt of millions of dollars in U.S. currency the cartel obtained from the sale of cocaine in the United States.
Guizar Valencia had been under indictment and was on the run for many years. He evaded apprehension until Feb. 9, 2018, when Mexican authorities and its military arrested him in Mexico City, Mexico. He later waived extradition.
U.S. District Judge Diana Saldana will sentence Guizar-Valencia at a later date, at which time he will be facing a possible punishment of up to life in prison and a $10 million maximum fine. He will remain in custody.
The DEA spearheaded the long term Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys (AUSA) MaryLou Castillo, Lance Watt and former AUSA James Hepburn of the Southern District of Texas and Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.
Oklahoman gets more than 37 years for kidnapping estranged wife by gunpointRead the Press Release
CORPUS CHRISTI, Texas – A 32-year-old resident of Yukon, Oklahoma, has been ordered to federal prison after his conviction of kidnapping and brandishing a firearm during the crime, announced U.S. Attorney Alamdar S. Hamdani.
The federal jury sitting in Corpus Christi deliberated for approximately three hours before convicting Joshua Anthony Wallin June 29 on both counts following a four-day trial.
U.S. District Judge David S. Morales has now ordered Wallin to serve 365 months in federal prison for the kidnapping charge to be immediately followed by 84 months for brandishing a firearm which must be served consecutively to the other term imposed. The total 449-month-term will be immediately followed by five years of supervised release. He was also ordered to pay the victim restitution. Before sentencing, Judge Morales took exception to Wallin’s statement that no one had been hurt. In imposing the prison term, the court into account all the pain Wallin caused to the victim and her family.
In the early morning hours of June 23, 2021, Wallin confronted his estranged wife at her home in Crescent, Oklahoma, holding her at gunpoint and subjecting her to a two-day ordeal. The jury heard how he took her and their one-year-old son on an arduous journey that culminated at a Corpus Christi restaurant.
The victim provided testimony describing her fear and how she was sexually assaulted before they left Oklahoma and again along the way. She also told the jury that at one point during the trip, Wallin said “at the end of the day someone is going to die.”
As they traveled though Texas, Wallin was aware of law enforcement, called 911 and began a series of conversations with them. He repeatedly made threatening statements about killing his wife and child, telling authorities they should not get too close. His driving became erratic, and law enforcement was able to use a tire deflation device to flatten a rear tire. He eventually crashed into a local restaurant.
They eventually arrived in Corpus Christi, at which time Wallin grabbed his son from the mother’s arms and carried him into the restaurant while pointing a gun at his son’s head. Upon entry, Wallin fired one shot into the ceiling and ordered the occupants out of the restaurant.
A two-hour stand-off then ensued. Wallin did speak with negotiators, but became increasingly agitated. As authorities gained entry, Wallin shot himself. The child was unharmed. Wallin recovered from his self-inflicted wound.
At trial, testimony revealed Wallin had performed internet searches on his phone the day before the kidnapping in an attempt to locate his estranged wife and to learn how people react when kidnapped.
The defense attempted to convince the jury that Wallin and the victim were on a vacation when things went horribly wrong. The jury did not believe those claims and found Wallin guilty as charged.
Wallin 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 Corpus Christi Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Michael Hess and Ashley Martin prosecuted the case.
Multi-million dollar COVID-19 fraudster trades mansion for a prison cellRead the Press Release
HOUSTON – A 33-year-old Richmond man who operated a medical supply company in Porter has been ordered to federal prison for a massive fraud that resulted in losses of $17 million, announced U.S. Attorney Alamdar S. Hamdani.
Caleb M. McCreless pleaded guilty May 2.
U.S. District Judge Sim Lake has now ordered him to prison for 110 months to be immediately followed by three years of supervised release and restitution of $36,279,780 to 11 different victims. Before imposing the sentence, the court noted the opportunistic nature of the crime. Given the sheer amount of loss McCreless caused, Judge Lake added that the victims would probably never be paid back in full.
“Mansions, a Rolls Royce, a lavish lifestyle, and good old fashioned greed motivated Caleb McCreless to take advantage of a nation’s emergency, exploiting the most vulnerable amongst us,” said Hamdani. “McCreless started his scheme by taking almost $1 million from the hands of those trying to treat Native American elders at a time when COVID-19 was decimating that population. His action were deplorable, and now it’s time to pay. No more cars, no more mansions, just a small cell.”
McCreless orchestrated a scheme to defraud retail buyers in the medical services sector by promising to deliver high-grade surgical gloves he did not have. He took initial payments that ran into the millions, but never delivered gloves or only delivered a small portion of them at a vastly inferior quality.
McCreless admitted when he ran out of victims from May 2020 through spring 2021, he induced millions in payments from his victims by offering surgical gloves from a trusted Chinese company. But, McCreless actually had no such relationship.
After taking the money, he would try to stall the victims and then eventually stopped communicating with them. Many failed deals ended in civil litigation. McCreless used the money to pay off co-conspirators and fund a lavish lifestyle such as buying exotic vehicles and a mansion.
Almost a dozen victims from across the United States, including Texas, lost over $17 million in the scheme.
McCreless has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Harris County Constable’s Office Precinct 1 conducted the investigation. Assistant U.S. Attorney Thomas Carter prosecuted the case.
Couple handed significant prison time for beating Uber driverRead the Press Release
HOUSTON – Two Houston residents have been ordered to federal prison following their conviction of carjacking with the intent to cause death or serious bodily harm, announced U.S. Attorney Alamdar S. Hamdani.
Frank Lewis Blanco, 28, and Destinee Guerrero, 24, pleaded guilty June 23.
U.S. District Judge David Hittner has now imposed a 120-month term of imprisonment for Blanco, while Guerrero received 72 months. Both must also serve three years of supervised release following their sentences.
At the hearing, the court heard from the victim who described what happened to him and his subsequent injuries. He noted how Blanco and Guerrero treated his head like a football and the lasting damage to his eye and nose. The court also heard additional testimony including how the victim is an immigrant who is a hard-working man to support his wife and children. In handing down the prison terms, Judge Hittner commented on the “extreme violent nature and circumstances of the offense.”
“Justice is blind” said Hamdani. “Whether a businessman heading to the office or an immigrant climbing into the driver’s seat, everyone deserves to be safe at work. As the son of an immigrant cab driver, I am heartbroken for what the victim endured and suffered for just doing his job. Thankfully, the court, today, provided justice to this working class man.”
“Blanco and Guerrero’s actions tear apart the fabric of our community by targeting those who keep our community running. They disguised themselves as passengers to savagely beat and rob a carshare driver trying to earn an honest living,” said Acting Special Agent in Charge David Martinez of the FBI Houston field office. “These two attackers not only robbed their victim of his livelihood but his sense of security. We hope today’s sentence demonstrates to these types of criminals, and others still out there, that we will not allow them to target and terrorize hard-working members of our community.”
On Nov. 13, 2022, Blanco and Guerrero hailed an Uber at approximately 8:30 a.m. However, once inside the vehicle, they repeatedly changed their destination, directing the driver around Houston for approximately half an hour.
The driver ultimately asked the couple to get out of the car, but they refused. He stopped at a gas station and asked the attendant to call the police. While awaiting the arrival of authorities, the driver again asked Blanco and Guerrero to get out of his car. The couple then began to attack him, knocked him unconscious, repeatedly stomped and kicked his body and then stole his car.
The gas station cameras captured the beating.
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.
The FBI conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorney Stuart Tallichet is prosecuting the case.
Suburban Houston man imprisoned for embezzlementRead the Press Release
HOUSTON – A 35-year-old Missouri City man has been ordered to prison in a long-running scheme that cost his employer millions of dollars, announced U.S. Attorney Alamdar S. Hamdani.
Preston Allen Fredrich pleaded guilty to wire fraud Aug. 17, 2022.
U.S. District Judge Keith P. Ellison has now ordered him to prison for 21 months to be immediately followed by one year of supervised release. In imposing the sentence, Judge Ellison noted the uniquely intimate nature of the crime.
From at least 2018 through spring 2021, Fredrich stole from a family-owned company located in North Houston that sold and re-fitted large trucks. Fredrich was the lead salesmen.
He orchestrated an embezzlement scheme in which he stole from his employer by submitting fake and fraudulent invoices and then collecting the payments for himself. He began his scheme by asking clients to send invoices directly to him, as opposed to the company. He then sent these invoices to the company with inflated expenses or unwanted upgrades, pocketing the difference for himself.
Fredrich also admitted that as the scheme progressed, he eventually set up a bank account with another individual who ran an auto-body shop that frequently did business with the victim company. Fredrich then submitted fake invoices from this company and hid them by bundling them with other legitimate invoices.
Fredrich was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Thomas Carter prosecuted the case.
Two sentenced in burglary of British Consul General’s residenceRead the Press Release
HOUSTON – A Houston man and woman have been sentenced for damaging property occupied by a foreign government, announced U.S. Attorney Alamdar S. Hamdani.
Darion Benjamin Woods, 28, and Christin Danielle Brinkley, 26, pleaded guilty May 16, admitting they broke into, damaged and stole several items from the private residence of the Consul General for Great Britain.
U.S. District Judge Randy Crane has now ordered Woods to serve 30 months in prison followed by three years of supervised release. Brinkley received 14 months followed by one year of home detention as part of her three years of supervised release after her sentence. Both were also ordered to pay $56,636.15 in restitution.
In imposing the sentence, the court considered a statement from the victim and noted the seriousness of the conduct and extent of damage to the residence.
At the time of the pleas, both admitted to burglarizing the home on July 23, 2022. Nobody was in the residence at the time of the incident.
Security cameras captured Brinkley and Woods pulling up to the gated residence with a U-Haul, jumping over the gate and eventually driving through it and causing significant damage. Once inside, they stole multiple items, including the two cars (one of which was the property of the British Consulate), jewelry, electronics, documents and a safe.
Authorities later located the stolen vehicles at an address in Houston and observed Brinkley inside both vehicles at different times. They took Brinkley and Woods into custody and recovered the vehicles as well as some property from the residence, most of which was damaged.
Both were ordered into custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of State – Diplomatic Security Service and the FBI conducted the investigation with the assistance of the Harris County Sheriff’s Office. Assistant U.S. Attorneys Luis Batarse and Richard W. Bennett prosecuted the case.
Ohio coding consultant agrees to settle allegations regarding neurostimulator devicesRead the Press Release
HOUSTON – A 47-year-old healthcare consultant has agreed to pay $30,000 to settle allegations that she assisted in causing the submission of false claims, announced U.S. Attorney Alamdar S. Hamdani.
Franceene McKinney is a medical information technology and coding consultant based in the Cincinnati area. Through her business, IOS Consultants LLC, she provided services to doctors, chiropractors and other medical professionals across the country, including in the Southern District of Texas.
From Jan. 1, 2016, to Dec. 31, 2020, McKinney aided those providers in billing Medicare fraudulently, pointing them to a billing code designed 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 providers McKinney assisted did not perform surgical procedures. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind them with an adhesive.
In addition to the financial settlement, McKinney and IOS have agreed to a three-year period of exclusion from participation in any federal health care programs.
To date, this is the tenth case the Southern District of Texas has resolved for similar conduct. The other matters included settlements with a Katy anesthesiologist, Houston pain doctor, Rockport chiropractor, Houston chiropractor, Laredo pain doctor, The Woodlands pain doctor, Cypress marketing representative, 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.