Southern District of Texas

McALLEN, Texas – A South Carolina man and a Georgia woman have been ordered to prison following their conviction of smuggling drugs through McAllen, announced U.S. Attorney Alamdar S. Hamdani.

Joseph Gray, Jr., 47, pleaded guilty Sept 12, 2022, to conspiracy to distribute meth, while Jasmine Cecelia Dorsey, 28, entered here plea Feb. 1, 2022, to importing meth.  

Today, U.S. District Judge Micaela Alvarez a 360-month term of imprisonment for Gray, while Dorsey received 64 months. Gray and Dorsey must also serve five and three years, respectively, of supervised release following the sentences. At the hearing, the court heard Gray’s trafficking organization smuggled drugs throughout parts of the eastern seaboard including Georgia, the Carolinas, New York, Virginia and Washington, D.C.

The court also heard that after Gray was released from state custody for robbing and killing a person and from federal custody for trafficking crack cocaine, he continued to engage in drug trafficking crimes that led to a series of supervised release revocations and an additional drug trafficking conviction. In handing down the prison terms, Judge Alvarez noted that Gray was given many chances to change his life but did not do so.

Two others were previously convicted and sentenced for their role in the conspiracy. Iyana De’Kyra Carter received a 78-month-term of imprisonment, while Keith Anthony Murray was ordered to serve 182 months.

On July 31, 2021, Dorsey and Carter traveled from Mexico and attempted to enter the United States through Hidalgo, Texas, port of entry with approximately 18 kilograms of pure meth concealed in the gas tank.

Further investigation revealed Gray directed Murray to hire drug mules. Dorsey and Carter drove from Atlanta, Georgia, to Monterrey, Mexico, loaded the vehicle with meth and attempted to bring the narcotics back to Georgia for further distribution. Gray coordinated extensively with Mexican and Panama narcotics traffickers to ensure the meth was received safely.

Gray will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Dorsey was permitted to remain on bond and voluntarily surrender at a later date.  

Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Jongwoo Chung prosecuted the case.

BROWNSVILLE, Texas – A 42-year-old Harlingen resident has pleaded guilty to smuggling a firearm linked to the March 3 incident involving the murder and kidnapping of U.S. Citizens in Matamoras, Mexico, announced U.S. Attorney Alamdar S. Hamdani.

Roberto Lugardo Moreno Jr. pleaded guilty today to aiding the smuggling of a firearm into Mexico knowing it was intended for members of the Gulf Cartel.

Law enforcement learned from Mexican authorities that a pistol Moreno purchased Oct. 17, 2019, was linked to the March 3 incident. The investigation revealed Moreno had obtained the firearm at a pawn shop in Brownsville. Moreno admitted to purchasing the firearm on behalf of another person he knew was going to provide it to a Gulf Cartel figure in Mexico.

“All too often, firearms are trafficked into Mexico where they end up in the hands of criminals who use them to murder, rob and extort innocent people,” said Hamdani. “Moreno helped smuggle a firearm for criminals he knew were in the Gulf Cartel who then allegedly used it to murder and kidnap American citizens. This case is a textbook example of the dangers involved when criminals transport weapons into Mexico.”

U.S. District Judge Rolando Olvera will impose sentencing Aug. 9. At that time, Moreno faces up to 10 years in federal prison and a possible $250,000 maximum fine.

He has been and will remain in custody pending that hearing.

Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the FBI and Drug Enforcement Administration. 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 Edgardo J. Rodriguez, Karen Betancourt, Israel Cano and Alejandra Andrade are prosecuting the case.

HOUSTON – A 31-year-old local man has been sent to prison for carjacking and discharging a firearm during a crime of violence, announced U.S. Attorney Alamdar S. Hamdani.

Zachary Smith, Houston, pleaded guilty Feb. 21.  

Today, Chief U.S. District Judge Randy Crane handed Smith a 41-month-term of imprisonment for the carjacking and another 120 months for the firearms charge which must be served consecutively to the other sentenced imposed. The total 161-month-sentence will be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that described the Smith’s criminal history.

On Feb. 6, Smith discharged a firearm while carjacking the victim and stealing his vehicle in the parking lot of a washateria on Melbourne Drive. He was also involved in a shooting Feb. 7 on the 2000 block of Broadway Street. On that day, Smith led law enforcement in a pursuit that came to an end when he crashed into a patrol unit.

Smith has been and will remain in custody.

The FBI conducted the investigation with the assistance of the Texas Department of Public Safety, Houston Police Department and Harris County Sherriff’s Office. Assistant U.S. Attorney Britni Cooper is prosecuting the case.

HOUSTON – A Houston man and woman have pleaded guilty to damaging property occupied by a foreign government, announced U.S. Attorney Alamdar S. Hamdani.

Today, Darion Benjamin Woods, 28, admitted he broke into, damaged and stole several items from the private residence of the Consul General for Great Britain. Christin Danielle Brinkley, 25, entered her plea May 11.

At their respective plea hearings, both admitted to burglarizing the home on July 23, 2022. They stole multiple items including two vehicles, one of which was the property of the British Consulate. 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, 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. 

Damages have been calculated at approximately $56,636. 

Chief U.S. District Judge Randy Crane accepted the pleas and set sentencing for Sept. 9. At that time, both face up to five years in federal prison and a possible $250,000 maximum fine. They are also expected to have to pay restitution.   

Both have been and will remain in custody pending that hearing.

The Department of State – Diplomatic Security Service and FBI conducted the investigation with the assistance of the Harris County Sheriff’s Office. Assistant U.S. Attorneys Richard W. Bennett and Luis Batarse are prosecuting the case.

GALVESTON, Texas – A 55-year-old McKinney resident has been sentenced to 20 years in prison for transportation of child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Darren Frank McCoy pleaded guilty Dec. 1, 2022, admitting he was previously a gymnastics and cheerleading coach in Texas and Alabama. He had recorded teens in various stages of undress without their knowledge or consent and had unlawfully transported those images and videos as well as disturbing images of child pornography.

Today U.S. District Judge Jeffery V. Brown ordered him to serve a total of 240 months in federal prison to be immediately followed by a 10 years of supervised release. At the hearing, the court heard from one woman whom McCoy recorded while she was a minor. She discussed how her life has been seriously impacted by McCoy’s conduct, describing how he stole her childhood experiences without her even knowing it and that she feels rage, anger and sadness and lack of empathy toward him. Another victim described how McCoy sexually abused her from the time she was 12 until the age of 18. She detailed how she suffers from post-traumatic stress disorder and anxiety.  McCoy was a gymnastics coach to these women.  

“Darren McCoy is the definition of a predator,” said Hamdani. “We encourage our children to engage in sports, believing that they will be safe when doing so. Instead, these athletes were betrayed. This so-called coach surreptitiously recorded teens and sexually abused a minor for several years. Hopefully, knowing the only bars he will see now are behind a federal prison cell will give his victims some long-awaited peace.”

On Nov. 30, 2019, McCoy had been on a cruise ship which docked in the Galveston Port of Entry. Authorities sent him to secondary inspection after learning of a prior child pornography investigation from 2015.

There, they found images of child pornography on his laptop which led them to seize other electronic devices including his phone which also yielded numerous pornographic images.

They also found nine videos on McCoy’s flash drive which appeared to be taken with a hidden camera. These videos, which appeared to be taken approximately a decade ago, were of teens changing their clothes or showering in a residential bathroom, a gym and at a hotel for a cheerleading competition. One of the teens was found to be a minor at the time. 

A subsequent search at McCoy’s residence in McKinney led authorities to discover two covert recording devices. Through the investigation, law enforcement learned McCoy was a gymnastics and cheerleading coach at Metroplex Gymnastics and Swim in Allen and had previously been a coach at Top Dog Cheer in Montgomery, Alabama.

In total, authorities found 10 videos and 290 images of child pornography on McCoy’s devices. His collection included children between the ages of 1 and 8 in various stages of undress in a hospital, mortuary or morgue-type setting. 

McCoy will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Homeland Security Investigations (HSI) – Galveston conducted the investigation with the assistance of police departments in Galveston and Pearland, Customs and Border Protection and HSI – Dallas.

Assistant U.S. Attorneys Kimberly Ann Leo and Sherri Zack are 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.

BROWNSVILLE, Texas – A 21-year-old San Benito resident has been indicted for assaulting federal agents with his vehicle, announced U.S. Attorney Alamdar S. Hamdani.

A federal grand jury returned the three-count indictment today.

According to the charges, on May 2, authorities attempted to conduct a traffic stop on Hector Eduardo Gamez. He allegedly refused to stop and fled at a high rate of speed.

Three federal agents arrived on scene, at which time Gamez nearly collided with three federal agents who arrived on scene to assist, according to the charges. Authorities allegedly apprehended him following the pursuit.

If convicted, Gamez faces up 20 years in prison and a possible $250,000 maximum fine.

The FBI conducted the investigation along with the Drug Enforcement Administration, U.S. Marshals Service, Texas Rangers and the San Benito Police Department. Assistant U.S. Attorneys Alejandra Andrade and Edgardo J. Rodriguez 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.

McALLEN, Texas – A 22-year-old resident of Toledo, Ohio, has pleaded guilty to transporting an undocumented alien, announced U.S. Attorney Alamdar S. Hamdani.

On Jan. 29, Maria Aguilar arrived at the Hidalgo port of entry with three minors in her vehicle. At that time, she claimed they were her relatives and presented Ohio birth certificates.

Law enforcement noticed the children appeared nervous and ultimately discovered the birth certificates were for other people.

Aguilar admitted the minors were not relatives, but undocumented aliens, and expected to be paid $4,700 to smuggle the minors into the United States.

U.S. District Judge Ricardo Hinojosa will impose sentencing Aug. 17. At that time, Aguilar faces up to 10 years in prison and a possible $250,000 maximum fine.

She was permitted to remain on bond pending that hearing.

Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Theodore Parran III prosecuted the case.

McALLEN, Texas – A local man has admitted he paid a prison guard to smuggle contraband into the La Villa Detention Center (LVDC), announced U.S. Attorney Alamdar S. Hamdani.

Abel Angel Solis, 24, Pharr, admitted he paid Jose Martin Espinoza, 36, Mercedes, to smuggle cellular phones into LVDC. Espinoza entered his plea April 24.

On May 17, 2022, Espinoza attempted to enter the detention center for his normally scheduled duty. At that time, other prison officials conducted a search and found a cell phone wrapped in cellophane inside his work cap.

Espinoza subsequently admitted Solis was paying him to bring the phones to an inmate who was being detained at LVDC pending proceedings on a hostage taking case. That inmate, Sixto Gonzalez Jr., pleaded guilty in that matter today.

The investigation also revealed cash app transactions between Espinoza and Solis. The transactions totaled $1,500 for the delivery of three phones from Espinoza to Gonzalez.

U.S. District Judge Marina Marmolejo accepted the pleas. U.S. District Judge Ricardo Hinojosa will impose sentencing July 31 and Aug. 18, for Espinoza and Solis, respectively. At those times, Espinoza and Solis face up to 15 years in prison and a possible $250,000 maximum fine.

Solis has been and will remain in custody pending that hearing. Espinoza was permitted to remain on bond.

The FBI conducted the investigation with the assistance of the U.S. Marshals Service. Assistant U.S. Attorney Colton Turner is prosecuting the case.

McALLEN, Texas – A 20-year-old resident of Edinburg has pleaded guilty to receipt of child pornography depicting prepubescent minors, announced U.S. Attorney Alamdar S. Hamdani.

Lazaro Segundo-Vazquez admitted to receiving over 1,800 images and video files containing child sexual abuse material.

An alert from the National Center for Missing and Exploited Children led authorities to a residence in Edinburg appearing to be uploading child pornography to a Google account. The investigation revealed Segundo-Vazquez received images and videos containing child sexual abuse material via a third-party messaging application on his cellular phone.

Segundo-Vazquez admitted to receiving child sexual abuse material that included videos and images of prepubescent children and toddlers. The material depicted children engaged in sexual acts with adults and other children. Segundo-Vazquez then uploaded several images of child sexual abuse material to a Google account.

U.S. District Judge Ricardo H. Hinojosa will impose sentencing Aug. 18. At that time, Segundo-Vazquez faces up to 20 years in prison.

He will remain in custody pending that hearing.

Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.

Assistant U.S. Attorney Cahal P. McColgan prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.

McALLEN, Texas – A 26-year-old Pharr man has admitted to hostage taking, announced U.S. Attorney Alamdar S. Hamdani.

Sixto Gonzalez Jr. admitted he unlawfully detained a 19-year-old Alamo man in order to force a ransom to be paid for his safe return.

On June 23, 2021, Gonzalez lured the victim into Mexico by purporting to have a potential job opportunity to give him. Gonzalez picked the victim up after the victim crossed into Mexico on foot. When they arrived at a house located in Reynosa, Mexico, Gonzalez and several co-conspirators beat and restrained the victim. Between June 23 and June 25, 2021, Gonzalez and his co-conspirators demanded $5,000 and a firearm in exchange for his return.

When the family could not immediately obtain the funds, conspirators sent a video to the victim’s family with footage of him being beaten with a wooden board until the board fractured.

Law enforcement eventually determined the location of the house where he was being held. They conducted a search of the home and found the victim bound with zip ties, covered with a blanket and with bruises throughout his body. They also discovered Gonzalez located inside the house.

U.S. District Judge Ricardo Hinojosa will impose sentencing Aug. 18. At that time, Gonzalez faces up to life in prison and a possible $250,000 maximum fine.

He has been and will remain in custody pending that hearing.

The FBI conducted the investigation with the assistance of the Reynosa State police in Tamaulipas, Mexico. Assistant U.S. Attorney Colton Turner and Roberto Lopez is prosecuting the case.

McALLEN, Texas – A 22-year-old resident of Tamaulipas, Mexico, has pleaded guilty to importing cocaine, announced U.S. Attorney Alamdar S. Hamdani.

Felipe Abad Medina-Rubio admitted he attempted to smuggle approximately four kilograms of cocaine into the United States through the Hidalgo port of entry.

On Dec. 2. 2022, he arrived at the checkpoint, at which time he stated he had no illegal drugs in his vehicle. Authorities referred him to secondary inspection where a K-9 alerted to the odor of narcotics near the battery of his vehicle. An X-ray examination revealed several anomalies which resulted in the discovery of four bricks of cocaine weighing approximately four kilograms. It had an estimated street value of $16,000.

At his plea today, he admitted he expected to be paid $2,000 to smuggle the cocaine into the united states.  

U.S. District Judge Ricardo Hinojosa will impose sentencing Aug. 17. At that time, he faces up to 40 years in prison and a possible $5 million fine.

Medina has been and will remain in custody pending that hearing.

Customs and Border Protection and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Theodore Parran III prosecuted the case.

HOUSTON - A 28-year-old Indian citizen has entered a guilty plea in a years-long international conspiracy to commit mail and wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

Between 2017 and 2020, Zaheen Malvi, who was illegally residing in Heber Springs, Arkansas, assisted Indian call centers in a telemarketing scheme that extorted millions of dollars from hundreds of victims in the United States. Malvi first acted as a runner in the scheme, going to different Target stores in the Chicago area and depleting funds from gift cards that victims had transferred to the call centers. In later years, Malvi managed other runners as they traveled around the country, picking up packages filled with cash that call center victims had mailed.

“The Indian call centers perpetrating these scams are relentless,” said Hamdani. “They prey on the fears and insecurities of the most vulnerable among us, such as the elderly. But we are relentless too. Today, one more criminal is finally held to account for the many years he helped funnel money from victims into the pockets of overseas scammers…and tomorrow, we keep working.”

One common script used in the scheme involved coercing victims into believing federal agents were investigating them. The “agent” on the phone would convince the victim the only way to clear his or her name from investigation was to buy gift cards and transfer the redemption codes to the call center or mail cash in a package to a name and address the call center provided. Runners in the United States would then deplete the gift card funds and pick up the packages.

As part of his plea agreement, Malvi will pay restitution to the scheme’s identified victims.

U.S. District Judge Andrew S. Hanen accepted the plea and set sentencing for Aug. 14. At that time, Malvi faces up to 20 years in prison and a possible $250,000 maximum fine.

He will remain in custody pending that hearing.

The Social Security Administration – Office of Inspector General (SSA-OIG), Treasury Inspector General for Tax Administration, U.S. Postal Inspection Service and Homeland Security Investigations in Houston and Fayetteville, Arkansas, conducted the investigation with the assistance of the FBI and Heber Springs Police Department. Assistant U.S. Attorneys Stephanie Bauman and Kate Suh are prosecuting the case.

The SSA and its OIG consistently warns people of similar scams. Protect yourself!

HOUSTON – A 58-year-old U.S. citizen has pleaded guilty to wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

Michael Knighten aka Michael Sabatine had been living in Brazil but was extradited in June 2022.

Knighten admitted he participated in a business email compromise (BEC) scheme which defrauded a number of companies including several in Houston. Using his alias, he sent fraudulent emails requesting changes to payment information on invoices due to vendors. This included where payments should be made, one of which was to a bank in Las Vegas. However, the accounts were not the vendor’s actual bank account.

He had fraudulently used the name and passport of a relative to contact the owner of this bank account in Las Vegas by email. Knighten had him set up a company and accept deposits and make disbursements until he could come to Las Vegas and set up his own account.

Knighten also used his alias in emails to Bennu Oil and Gas Company in Houston beginning in March 2014. He fraudulently represented himself to be the financial director of Ceona Offshore and requested payments due to Ceona from Bennu. In May 2014, he sent additional emails to Bennu and caused the company to send a wire transfer in the amount of $651,125, to a bank account in Portugal.

After making this payment, Bennu uncovered the fraud and was able to freeze some of the funds, but still suffered a loss of $224,000.

As part of his plea, Knighten admitted the companies he defrauded suffered total losses of over $3 million.

“Knighton defrauded several companies, large and small, out of millions of dollars using business email compromise schemes,” said Hamdani. “BEC scams have become a serious problem, targeting not just companies but individuals, often from the comfort of an overseas hideaway. Despite that, we will not rest until we bring scammers, like Knighton, to justice, no matter where they reside. Note that criminals will continue to use phishing emails to try to obtain important information which can lead to serious financial losses. So, stay alert!”

U.S. District Judge Lee H. Rosenthal will impose sentencing Aug. 31. At that time, Knighten faces up to 20 years in prison and a possible $250,000 maximum fine.  

Knighten has been and will remain in custody pending that hearing.

The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.

HOUSTON - A 63-year-old Houston resident has pleaded guilty to wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

Maria Denise Southall-Shaw was the former manager of Shadow Creek Ranch in Pearland. Today, she admitted to defrauding FirstService Residential, a company which managed Shadow Creek Ranch’s homeowner associations and had employed Southall-Shaw.

As part of her plea, Southall-Shaw admitted she approved invoices from a vendor for goods and services which she knew had not been provided. In return, the vendor then provided kickbacks to her.

From November 2013 through November 2017, the vendor would pay Southall-Shaw half of payments they received from the fraudulent invoices, which were allegedly for goods such as pool equipment and supplies but not actually provided to Shadow Creek Ranch. Southall-Shaw admitted she approved the invoices. In return, the vendor made his payments to Shawdashian Group, a company Southall-Shaw owned.

U.S. District Judge Randy Crane accepted Southall-Shaw’s guilty plea and set sentencing for Sept. 19. At that time, Southall-Shaw faces up to 20 years in federal prison as well as a possible $250,000 maximum fine.

She was permitted to remain on bond pending that hearing.

The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.

LAREDO, Texas – A total of eight San Antonio residents are now in custody following the return of a 12-count indictment related to the theft and exportation of motor vehicles, announced U.S. Attorney Alamdar S. Hamdani.

Law enforcement took all into custody in law enforcement actions this week - Guadalupe Alex Armendariz-Delgadillo, 46, Ivan Pacheco, 36, Julio Escamilla, 26, Derrick Ramirez, 28, Richard Joseph, 29, Michael Martinez, 20, Enrique Moreno, 23, and Leonardo Santillan, 21. They are expected to make their initial appearance before a U.S. Magistrate judge in the Western District of Texas before transportation to Laredo to face further proceedings.

A federal grand jury returned the indictment under seal May 2 which was unsealed upon each of their arrests.

Between June 6, 2021, and Feb. 12, 2022, each of the eight either exported or attempted to export and aided in the export or attempted export of a motor vehicle they knew was stolen, according to the charges.

Armendariz-Delgadillo, Pacheco and Joseph are also charged in separate counts of unlawfully transporting one of those stolen vehicles from the United States to Mexico from Aug. 6 - Dec. 4, 2021.

If convicted, each faces up to 10 years imprisonment as well as a maximum $250,000 possible fine, upon conviction.  

The FBI conducted the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Black Echo with assistance from Homeland Security Investigations, Customs and Border Protection, Border Patrol, Texas Department of Public Safety, police departments in Laredo and San Antonio and the Bexar County Sheriff’s Office.

Assistant U.S. Attorney James Sturgis and Brian Bajew are prosecuting the case.

The investigation was brought as part of the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Black Echo. OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States through prosecutor-led, intelligence-driven, multi-agency task forces that leverage the authorities and expertise of federal, state, and local law enforcement.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

CORPUS CHRISTI, Texas – A 33-year-old Humble man has been ordered to federal prison following his conviction of smuggling 20 non-U.S. citizens, announced U.S. Attorney Alamdar S. Hamdani.

Vince Ruiz III pleaded guilty July 6, 2022.

Today, U.S. District Judge Nelva Gonzales Ramos ordered Ruiz to serve 18 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard that in the event of an emergency or accident, the smuggled individuals would not have been able to extricate themselves from the inside of the trailer. In discussing the factors impacting the sentence, the court remarked on Ruiz’s use of his commercial driver’s license as a special skill in committing the offense.

On Oct. 5, 2021, Ruiz drove a white Freightliner tractor pulling two trailers marked “FedEx Ground” into the primary inspection lane at the Border Patrol (BP) checkpoint located near Falfurrias. At that time, Ruiz possessed a valid commercial driver’s license. During inspection, a K-9 alerted authorities to one of the trailers.  

A subsequent search of the trailer revealed 20 undocumented individuals inside behind a locked door, including a 16-year-old unaccompanied minor. Law enforcement also discovered 15 grams of marijuana and five grams of cocaine.

At the time of his plea, Ruiz admitted he drove to Edinburg to pick up the trailer and return to Cypress. During the trip, he pulled over to the side of the road in a secluded area where the undocumented individuals were then loaded into the trailer.

They were later determined to be illegally present in the country.

Ruiz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Homeland Security Investigations conducted the investigation. Former Assistant U.S. Attorney (AUSA) J. Parker Gochenour prosecuted the case. AUSA Tyler Foster handled the sentencing.  

HOUSTON – A 41-year-old woman who illegally resided in Houston has admitted to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

Leidy Areli Hernandez Lopez pleaded guilty to conspiring with others residing in the Southern District of Texas and elsewhere to buying and selling thousands of fraudulent Texas-issued temporary buyer tags. None of the paper tags issued were for legitimate vehicle purchases and some were for cars outside of Texas.

Lopez and co-conspirators used the internet to buy and sell the fraudulent state-issued buyer tags and exchange proceeds from the illegal tag sales.

As part of her plea, Lopez acknowledged she and her co-conspirators communicated through email to send and deliver fraudulent buyer tags to purchasers all over the United States, including New York and Washington, D.C.

She also admitted her co-conspirators submitted falsified information to the Texas Department of Motor Vehicles to obtain a fraudulent used car dealer license in order to print and sell state-issued buyer tags and shared the fraud proceeds via electronic payment services such as Cash App and Zelle.

U.S. District Judge George C. Hanks Jr. accepted the plea and will impose sentencing Oct. 2. At that time, Lopez faces up to five years in federal prison and a possible $250,000 maximum fine.

Lopez was permitted to remain on bond pending that hearing.

Emmanuel Padilla Reyes aka Christian Hernandez Bonilla or Noel Rivera is still a fugitive. The FBI is offering a $5,000 reward to anyone providing information that directly leads to his arrest. Those with information about the fugitive’s location should call 1-800-CALL-FBI.

The FBI conducted the investigation with assistance of Travis County Precinct 3 Constable’s Office, Houston Police Department, Texas Department of Public Safety, Texas Department of Motor Vehicles, Harris County Sheriff’s Office, New York State Police and New York City Police Department. Assistant U.S. Attorneys Belinda Beek and Adam Goldman are prosecuting the case.

McALLEN, Texas – A 22-year-old man has been arrested for conspiracy to transport illegal aliens, announced U.S. Attorney Alamdar S. Hamdani.

Authorities took Luis Ruiz-Valadez into federal custody today. He is expected to make his initial appearance before U.S. Magistrate Judge Juan F. Alanis at 9 a.m.

The criminal complaint alleges on April 18, authorities observed several subjects breach the border wall near Hidalgo and run to a nearby parking lot. There, Ruiz-Valadez was allegedly waiting in a red Ford F-150 pick-up truck. 

According to the charges, Ruiz-Valadez fled the scene at a high rate of speed and failed to yield when law enforcement attempted to conduct a traffic stop for speeding. Throughout the high-speed pursuit, they observed three subjects laying in the bed of the truck, according to the complaint.  

Ruiz-Valadez allegedly crashed into a cement barricade on Expressway 83 and was taken into custody.

If convicted, Ruiz-Valadez faces up to 10 years in federal prison and a possible $250,000 maximum fine.

Border Patrol conducted the investigation with the assistance of the Texas Department of Public Safety. 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.

CORPUS CHRISTI, Texas – A 48-year-old Edinburg resident has been ordered to federal prison following his conviction for obstruction of justice, announced U.S. Attorney Alamdar S. Hamdani.

Jose Manuel Gutierrez pleaded guilty Jan. 26.  

Today, U.S. District Judge Nelva Gonzales Ramos ordered Gutierrez to serve 14 months in federal prison followed by two years of supervised release. At the hearing, the court heard additional evidence regarding Gutierrez’s criminal history which includes convictions for assault, money laundering and aiding and abetting the entry of illegal aliens. In handing down the sentence, the court noted the concerning nature and circumstances of the crime.

“This human smuggler tried to get witnesses to lie,” said Hamdani. “My office is not going to stand by and let intimidation replace the truth. The seriousness of his threats to justice merit the sentence imposed today.”

At the time of his plea, Gutierrez admitted he attempted to influence an official proceeding knowingly and dishonestly, with intent to undermine the proceeding.

On April 11, 2022, Gutierrez arrived at the Falfurrias Border Patrol (BP) checkpoint. There, authorities ultimately found 10 people, illegally present in the United States, concealed in the sleeper portion of the tractor he was driving. Two of them described how they were transported and identified Gutierrez in a photo-lineup as the driver who instructed them to get into the vehicle and covered them with blankets.  

However, the two witnesses later changed their accounts, reporting they did not know Gutierrez and had no contact with them.

The investigation revealed Gutierrez had provided the names of the two witnesses to a family member after their initial statements to authorities. He instructed the individual to give the names to another person who could then “work” them. The witnesses later claimed they had changed their statements because Gutierrez had told them to do so. While there were no direct threats, both reported they were afraid something might happen to them if they had not done so.  

Gutierrez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

BP conducted the investigation. Assistant U.S. Attorneys Liesel Roscher and John Marck prosecuted the case.

CORPUS CHRISTI – The final members of a Corpus Christi drug trafficking organization have been ordered to federal prison following their convictions of conspiracy to possess with intent to distribute cocaine and money laundering, announced U.S. Attorney Alamdar S. Hamdani.

Gilbert DeLosSantos, 51, and his wife, Corina DeLosSantos, 56, pleaded guilty Nov. 7, 2022, while Lawrence Guevara, 52, and Amber Ramirez, 35, entered their pleas Sept. 29, 2022. All are from Corpus Christi.

Today, U.S. District Judge David Morales found Gilbert DeLosSantos to be a leader in the conspiracies and sentenced him to a total of 180 months in federal prison to be immediately followed by 10 years of supervised release. Corina DeLosSantos received a 54-month-term of imprisonment followed by three years of supervised release for her role in the money laundering conspiracy.

Judge Morales previously sentenced Guevara and Ramirez for their respective involvement in the drug conspiracy to 120 and 51 months, respectively.

As a result of the criminal convictions in this case, approximately $13,000 in U.S. currency and six pieces of real property have been forfeited to the United States.

In September 2019, a seizure of cocaine at the Sarita Border Patrol checkpoint sparked an investigation into a drug trafficking operation that Gilbert DeLosSantos ran in Corpus Christi. This resulted in the identification of drug distribution locations and multiple individuals ranging from street-level dealers to mid-level suppliers.

On May 10, 2022, authorities conducted four federal search warrants at locations in the Corpus Christi area. At one, they arrested Guevara and Ramirez who were workers at the residence and seized 634 grams of cocaine, 331 grams of heroin, 31 grams of crack cocaine, $1,170 U.S. currency and several drug ledgers.

Law enforcement later arrested DeLosSantos at his residence and seized approximately $12,000 in U.S. currency, multiple phones and electronic devices, Nueces County property tax statements and banking records.

The investigation led authorities to believe DeLosSantos and his organization were selling approximately one kilogram each of cocaine and heroin per week.

Previously released on bond, both were permitted to remain on bond and voluntarily surrender at a later date.

Homeland Security Investigations and the Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation New Trap on the Block with the assistance of Customs and Border Protection, Corpus Christi Police Department and Texas Department of Public Safety.

OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

Assistant U.S. Attorney Lance Watt prosecuted the case.

HOUSTON – A 32-year-old Mexican citizen who illegally resided in Houston has been ordered to federal prison following his conviction for conspiracy to distribute meth during a transaction that occurred in a Houston residential neighborhood, announced US Attorney Alamdar S. Hamdani.

Ismael Salas Navarro pleaded guilty Nov. 17, 2022.

Today, U.S. District Judge David Hittner sentenced Navarro to a total of 135 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.

“Mexican cartels and their drugs are not welcome in our cities,” said Hamdani. “Cartels, like the Gulf Cartel, endanger the lives of our citizens and loved ones. Today’s sentence sends a strong message to criminals like Navarro that our communities will not tolerate the scourge of drug traffickers.”

Navarro’s arrest and ultimate conviction stems from an investigation into individuals affiliated with the Gulf Cartel operating in Houston. On Jan. 25, 2021, law enforcement recorded Navarro ordering two kilograms of crystal meth from a co-conspirator. Authorities then watched as the narcotics were delivered to Navarro in a quiet Houston neighborhood.

They took him into custody before he could drive off with the narcotics.

Navarro has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Drug Enforcement Administration, FBI, Houston Police Department, Harris County Precinct 5 Constable’s Office and the Harris County Sheriff’s Office conducted this investigation. Assistant U.S. Attorney Shelley J. Sullivan prosecuted the case.

HOUSTON – A 34-year-old Houston resident has been handed a significant sentence for his role in a meth distribution conspiracy, announced U.S. Attorney Alamdar S. Hamdani.  

Abril Pineda-Ortiz aka Carlos Raudel Pineda-Ortiz pleaded guilty May 13, 2021. 

Today, U.S. District Judge Lee H. Rosenthal ordered Pineda-Ortiz to serve a 130-month-term of imprisonment to be immediately followed by five years of supervised release. In imposing the sentence, the court found that Pineda-Ortiz was the source of supply in transactions involving significant amounts of meth. In handing down the sentence, the court noted the devastating effects that meth has had on people and communities.   

To date, more than 30 people have been convicted in the related drug conspiracies involving meth, cocaine and heroin. With the sentence today, 20 have now been sent to prison. 

“These traffickers will pay with their freedom,” said Hamdani, “to the tune of a combined sentence of more than 2000 months in federal prison for infecting our communities with hundreds of kilograms of meth, fentanyl, cocaine and heroin.”

“The success of these investigations and the corresponding sentences serve as an example of the impact multiple agencies can have when they join forces,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA). “This operation dismantled the activities of a dangerous criminal organization that was responsible for smuggling and distributing hundreds of pounds of illicit narcotics throughout the State of Texas. The DEA will continue to focus our resources on drug trafficking organizations that oversee, coordinate and facilitate the distribution of illegal drugs in our communities.”  

At the time of the plea, Pineda-Ortiz admitted she supplied meth in multiple drug transactions involving co-conspirators Juan Carlos Salinas, 41, and Crystal Lynn Harrold, 42, both of Houston.

Authorities also executed a search warrant at the residence of Pineda-Ortiz where they found and seized a firearm, an additional 1,857 grams of meth and drug sale paraphernalia.

The investigation into these three individuals began in 2015. Over the next two years, law enforcement was able to execute operations aimed at curtailing the organization’s sale of meth, cocaine, heroin, and fentanyl. 

As a result of the investigations, law enforcement seized 82.3 kilograms of meth, 16.4 kilograms of fentanyl, 176.7 kilograms of marijuana, 83.9 kilograms of cocaine, 31 kilograms of heroin and one kilogram of GHB as well as $586,706.61 in assets.

The combined sentences in the related cases thus far have exceeded 2000 months in federal prison with several receiving sentences well in excess of 10 years. One was ordered to serve 222 months.

The DEA conducted the initial investigations along with the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; police departments in Houston and Huntsville; sheriff’s offices in Fort Bend and Harris counties; and Texas Department of Public Safety. 

The subsequent DEA-led Organized Crime Drug Enforcement Task Forces (OCDETF) investigations were dubbed Operation Goody Two Shoes and Beverly Hills 90210.

Assistant U.S. Attorneys Sharad Khandelwal, Carolyn Ferko and Michael Day are prosecuting the cases.

OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

McALLEN, Texas – A 19-year-old Edinburg resident has pleaded guilty to smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.

Peter Deshaewn Maldonado-Guillen admitted to attempting to export five AK-47 rifle barrels without a license or written approval.

On Feb. 14, Maldonado-Guillen crossed through the Hidalgo Port of Entry (POE). However, Mexican authorities selected his vehicle for inspection and denied entry into Mexico. He was not in possession of the appropriate documentation for the vehicle and had to return to the United States. 

Once back at the Hidalgo POE, he denied having any firearms, but U.S. authorities referred him and his vehicle for secondary inspection.

During a search of the vehicle, law enforcement discovered five AK-47 barrels in the quarter panel area of the vehicle. Maldonado-Guillen admitted to taking possession of the weapon parts in the United States, loading them into his vehicle and transporting the weapon parts into Mexico.

AK-47 barrels are designated as defense articles on the U.S. Munitions List. Maldonado-Guillen did not obtain consent or a license to export the weapon parts into Mexico.

U.S. Chief District Judge Randy Crane will impose sentencing July 13. At that time, Maldonado-Guillen faces up to 10 years in federal prison and a possible $250,000 maximum fine.

He has been and will remain in custody pending that hearing.

Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Jose A. Garcia is prosecuting the case.

HOUSTON – A total of five people, all illegally residing in Houston, have been sentenced in connection with the April 2021 discovery of nearly 100 undocumented aliens in a suburban Houston residence, announced U.S. Attorney Alamdar S. Hamdani. 

The leader in the conspiracy - Henry Licona-Larios, 34, Copan, Honduras - pleaded guilty May 24, 2022.

Today, U.S. District Judge Keith Ellison ordered him to serve 41 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.

At the hearing, the court heard additional evidence that detailed the inhumane conditions to which these undocumented aliens were subjected and that Licona-Larios was connected to an additional stash house discovered in December 2020. In handing down the sentence, the court noted the seriousness of the offense and Licona-Larios’s verbal and physical mistreatment of the undocumented aliens.

Four others had also pleaded guilty for their respective roles and were previously sentenced. Those included Marina Garcia-Diaz, 24, San Miguel, El Salvador, who received 27 months as well as Marcelo Garcia-Palacios, 23, Oaxaca, Mexico; Kevin Licona-Lopez, 27, Santa Barbara, Honduras; and Marco Baca-Perez, 22, Michoacan, Mexico, all of whom were ordered to serve 30 months. All are also expected to face removal proceedings.

“You cannot trust a human smuggler. Giving them money will put your life in danger,” said Hamdani. “These five people preyed on the desperation of foreign nationals hoping to get into the country. This sentence makes it clear - we will not allow the victimization of people for profit.”

The investigation began April 30, 2021, when authorities learned of a kidnapping. A woman reported that she had paid several thousand dollars for her brother to be smuggled into the country. 

However, the smugglers demanded more money before they would release him. They also threatened to harm him if the money was not paid.

The investigation led to a residence on Chessington Drive in Southwest Houston. There, authorities ultimately found 97 illegal aliens held in two rooms of the residence. The rooms had deadbolts on the doors facing the outside which prevented escape. All of the male individuals were in their undergarments. One was told if the money was not paid, he would be put in “4 pieces of wood.” 

All five have been and will remain in custody.

Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Karen M. Lansden prosecuted the case.    

HOUSTON – A 31-year-old Houston resident has entered a guilty plea to two counts of Hobbs Act robberies as well as discharging a firearm during one of the crimes, announced U.S. Attorney Alamdar S. Hamdani.

Dominique Andrews robbed two Auto Zone locations in Houston.

On Feb. 4, 2022, Andrews entered the Auto Zone on Cullen Boulevard and robbed an employee at gunpoint. He produced a silver semi-automatic firearm and demanded money from the victim. Fearing for her life, the employee complied. Andrews also took two car scanners. During the robbery, he discharged a round from his firearm.

The same day, Andrews went to another Auto Zone on Telephone Road. He again produced a silver semi-automatic firearm and demanded money from the employee victim. Andrews discharged several rounds from the firearm he was carrying while in the commission of the robbery.

U.S. District Judge David Hittner accepted the plea and set sentencing for July 27. At that time, Andrews faces up to 20 years for the robberies as well as a mandatory minimum of 10 years and up to life for the firearms charge which must be served consecutively to any other prison term imposed. Both charges also carry a possible $250,000 maximum fine.  

He has been and will remain in custody pending that hearing.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Houston Police Department conducted the investigation.

This case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.

Assistant U.S. Attorney Joe Porto is prosecuting the case.

LAREDO, Texas – A 32-year-old U.S. citizen has pleaded guilty to smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.

Jesus Alberto Olivarez admitted to attempting to export 5,680 rounds of assorted pistol ammunition.  

“All too often, the smuggling of illegal firearms and ammunition to Mexico is used to fuel a scourge of violence that threatens law enforcement and security officials, as well as the communities they serve,” said Deputy Attorney General Lisa O. Monaco. “To protect our law enforcement partners and the people of both our nations, the Justice Department will continue to use all of the tools at our disposal to stop those who would traffic illegal guns and ammunition to Mexico.”

“Olivarez was about to drive into Mexico with almost 6,000 rounds of live ammunition until the expertise and keen ear of a law enforcement officer thwarted his plan,” said Hamdani. “Stopping the illegal flow of firearms and ammunition into Mexico saves lives and will always be a priority of the Southern District of Texas and our local, state and federal law enforcement partners.”

On Feb. 27, Olivarez drove his black PT Cruiser to the Lincoln Juarez International Bridge on his way home to Nuevo Laredo, Tamaulipas, Mexico. Authorities noted one of the vehicle’s doors rattled as if something was hidden in it and seemed unusually heavy.

A subsequent search of all four of the Cruiser’s door panels yielded a total of 5,680 live rounds of pistol ammunition in assorted calibers - 3,600 rounds of .40 caliber S&W, 900 rounds of .380 caliber, 900 rounds of .45 caliber, 100 rounds of 9-millimeter and 180 rounds of .38 SPL +P ammunition.

Olivarez admitted he had agreed to smuggle the ammunition into Mexico and had just received the ammunition a few hours prior. He personally hid the ammunition throughout the vehicle’s door and rear panels.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing Aug. 9. At that time, Olivarez faces up to 10 years in prison and a possible $250,000 maximum fine.

He has been and will remain in custody pending that hearing.

Homeland Security Investigations (HSI) assigned to the HSI-Laredo Border Enforcement Task Force, working in coordination with the Laredo Police Department’s Texas Anti-Gang Unit, conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Homero Ramirez is prosecuting the case.

This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

HOUSTON – A 30-year-old Houston man has been ordered to federal prison following his conviction of conspiracy to commit mail fraud in a scheme to defraud victims through a variety of internet scams, announced U.S. Attorney Alamdar S. Hamdani.

Ganiyu Abayomi Jimoh pleaded guilty Aug. 1, 2022.

Today, U.S. District Judge Andrew S. Hanen ordered Jimoh to serve 36 months in federal prison to be immediately followed by three years of supervised release. Jimoh was also ordered to pay $405,427.80 in restitution. At the hearing, the court heard additional evidence including that at least one of the victims was an 84-year-old man who was defrauded of money by an online “girlfriend” and how $13,500 of his losses were deposited into accounts Jimoh opened.

In 2019, Jimoh began working with co-conspirators pretending to be U.S. military soldiers deployed to Afghanistan. They would solicit victims wishing to assist soldiers stationed overseas and persuaded them to contribute monies toward non-existent real estate deals. 

As part of his plea, Jimoh admitted to using counterfeit passports to open bank accounts to receive funds from the victims for his personal benefit.

Jimoh will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.

BROWNSVILLE, Texas – A 58-year-old resident of Hemet, California, has pleaded guilty to passing counterfeit U.S. savings bonds over three years, announced U.S. Attorney Alamdar S. Hamdani along with Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.

Daniel Alan Lewis and others conspired to create counterfeit U.S. Series I savings bonds. They then passed them at financial institutions using other people’s identities and split the proceeds.

As part of his plea, Lewis further admitted that in November and December 2021, he passed numerous counterfeit savings bonds at banks in both the Houston and Brownsville areas.

U.S. District Judge Fernando Rodriguez Jr. accepted the plea and set sentencing for Aug. 10. At that time, Lewis faces up to 20 years in federal prison and a possible $250,000 maximum fine.

He has been and will remain in custody pending that hearing.

Homeland Security Investigations conducted the investigation with the assistance of the Secret Service, Department of the Treasury - Office of Inspector General and the Cameron County Sheriff’s Office. Assistant U.S. Attorney Edgardo J. Rodriguez is prosecuting the case along with Trial Attorney David D. Hamstra. 

HOUSTON – A 47-year-old man has been ordered to federal prison following his conviction of wire fraud, announced U.S. Attorney Alamdar S. Hamdani along with Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.

Scott Jackson Davis pleaded guilty May 26, 2022.

Today, U.S. District Judge David Hittner sentenced Davis to a total of 102 months in federal prison to be immediately followed by three years of supervised release. The court also ordered him to pay restitution in the amount of $3,002,655.13.

At the hearing, the court heard evidence that at the time of the offense, Davis was on supervised release for another wire fraud conviction and had only been out of prison for just over four months when he began submitting the fraudulent Paycheck Protection Program (PPP) applications. As such, Judge Hittner noted Davis presented a danger to the community during the hearing.

In 2020, Davis fraudulently received $3.3 million in PPP funds through three fraudulent loan applications submitted to multiple financial institutions. Davis fabricated ownership of three businesses - Skilled Trade Investments LP, Skilled Trade Staffing LLC and Skilled Trade Investments Group - which he claimed staffed numerous employees and had significant payroll.

However, the businesses actually had few, if any, employees and little to no payroll if it existed at all. Davis used forged IRS documentation to corroborate the vastly inflated business expenses.

Davis also lied on each of the PPP applications, indicating he had never been convicted of a felony. In fact, he is a prior felon who was on supervised release for an unrelated 2017 wire fraud conviction.  

Davis spent a large portion of the fraudulently acquired PPP loan funds on private jet travel, real estate, jewelry, guns and luxury vehicles.

Davis will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI and Small Business Administration - Office of Inspector General  conducted the investigation. Assistant U.S. Attorney John Wakefield and Trial Attorney Edward Emokpae of the Criminal Division’s Fraud Section prosecuted the case.

CORPUS CHRISTI, Texas – A 23-year-old man residing in Corpus Christi has pleaded guilty to possession with intent to distribute 210 grams of meth, announced U.S. Attorney Alamdar S. Hamdani.

On Sept. 4, 2022, Jacob Soliz was a passenger in a sedan driving in Corpus Christi around 11:30 p.m. Authorities conducted a traffic stop after observing the vehicle was traveling without any headlights activated.

Law enforcement then observed the smell of burnt marijuana and ultimately conducted an inspection of the vehicle. At that time, they discovered multiple baggies of meth totaling 210 grams, baggies of marijuana totaling approximately 150 grams and a loaded AR-15 rifle. They also discovered approximately $2,500 located in Soliz’s pocket.

Soliz admitted the meth and rifle belonged to him.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing Aug. 9. At that time, Soliz faces up to life in federal prison and a possible $10 million maximum fine.

Soliz was permitted to remain on bond pending sentencing.

Corpus Christi Police Department and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Tyler Foster is prosecuting the case.

LAREDO, Texas – A 48-year-old Splendora resident has been order to federal prison for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.

Denny Fuentes pleaded guilty Sept. 15, 2022.

Today, U.S. District Judge Diana Saldaña ordered Fuentes to serve 15 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard the aliens, including five unaccompanied minors, were locked in the semi-trailer. In handing down the sentence, the court noted that Fuentes put everyone who was in the trailer in danger of harm.

On June 15, 2022, Fuentes drove a white semi-tractor pulling a white refrigerated utility trailer. He slowly approached the primary commercial lane at the Border Patrol (BP) checkpoint in Webb county, but authorities had to order him to stop.

At initial inspection, he displayed nervous behavior, and his lips were trembling. Fuentes told authorities he was “hauling pig meat.” He provided his passport and a manifest for products requiring transport at no higher than 45 degrees. However, the trailer temperature was set at 56 degrees.

Upon a secondary inspection, authorities discovered 71 undocumented aliens that included five minors.  

The temperature inside the enclosed metal trailer was almost 80 degrees while the outside temperature was approximately 100 degrees.

Fuentes was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility no earlier than September 8, 2023.

Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Homero Ramirez prosecuted the case.

McALLEN, Texas – A 35-year-old McAllen resident has been ordered to federal prison following his conviction for robbery of a motor vehicle with intent to cause serious harm or death, announced U.S. Attorney Alamdar S. Hamdani.

Fidel Garza Jr. pleaded guilty Feb. 15.

Today, U.S. District Judge Micaela Alvarez handed Garza a 85-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Garza’s criminal history, including prior felony convictions for discharging a firearm in 2016 and being a felon in possession of a firearm in 2021.

On Nov. 25, 2021, Garza was on the 1200 block of 28th street riding in the passenger seat of a truck which pulled in front of an SUV and stopped. A 67-year-old man was driving that vehicle. Garza exited the passenger side of the truck and approached the SUV. He then pointed a handgun at the driver and demanded he and his three minor passengers get out of the vehicle. Fearing for their lives, they complied. Garza then entered the SUV and fled the scene. 

Law enforcement tracked him to a rural location in Edinburg. They arrested him in December 2021, at which time he admitted his role in the robbery.

He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The McAllen Police Department and Texas Department of Criminal Justice conducted the investigation with the assistance of the FBI and the Edinburg Police Department as part of the Rio Grande Valley Safe Streets Task Force. Assistant U.S. Attorneys Anthony J. Evans and James Sturgis prosecuted the case.

McALLEN, Texas – A 46-year-old man has been ordered to prison following his conviction of conspiracy to smuggle undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.

Medardo Cano pleaded guilty Feb. 15.

Today, U.S. District Judge Micaela Alvarez ordered Cano to serve 18 months in federal prison to be immediately followed by three years of supervised release.

In delivering the sentence, Judge Alvarez noted the seriousness of the offense and expressed her concerns that Cano had no way to verify the minors would be reunited with family had the smuggling attempt been successful.  

“Do not hire smugglers to transport your children,” said Hamdani. “You may never know where they took them or the degree of danger associated with the trip. Do not place your child’s life in the hands of criminals.”

On Dec. 7, 2022, Cano traveled with two minor children from Mexico to the United States. He encountered law enforcement at the Pharr Port of Entry and presented them with fraudulent Texas birth certificates on behalf of the minors. The investigation revealed the minor children were undocumented aliens.

Cano later admitted he had been hired to transport the children to the United States and knew the birth certificates were fraudulent.

Cano will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Matthew Phelps prosecuted the case.

HOUSTON – A 39-year-old man who holds citizenship in the United States and Ghana has pleaded guilty to operating an illegal money transmitting business, announced U.S. Attorney Alamdar S. Hamdani.

Kenneth Anim had resided in the Houston and Richmond areas.

He admitted that from 2014 to 2019, he operated an unlicensed money transmitting business to launder funds from wire fraud schemes including internet fraud and romance scams. Anim ran the unlicensed money transmitting business by using shell companies that existed only on paper.

As part of the plea, he acknowledged opening and maintaining bank accounts to collect proceeds from internet and romance fraud schemes to send the money to himself, co-conspirators and overseas.

A romance scam occurs when criminals adopt fake online identities to gain a victim’s affection and trust. The scammer then uses the illusion of a close relationship to induce the victim, under false pretenses, to send money to the scammer.

U.S. District Judge Ewing Werlein accepted the plea and set sentencing for July 21. At that time, Anim faces up to five years in federal prison and a possible $250,000 maximum fine.

Amin has been and will remain in custody pending sentencing. 

FBI conducted the investigation. Assistant U.S. Attorneys Belinda Beek and Grace Murphy are prosecuting the case.

HOUSTON – A 54-year-old Baytown woman has pleaded guilty to wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

Judy M. Green admitted to embezzling over $3 million from her employer for approximately 10 years.   

Green worked as an account manager for a Houston-based building and maintenance supply company. As part of the scheme, she submitted fraudulent invoices to induce payment from the company and pocketed the funds for personal expenses. Ultimately, the scheme was uncovered when one of the business owners noticed a large payment to an unknown credit card company in the summer of 2022. An audit revealed the fraud had been ongoing since 2012.   

U.S. District Judge Alfred Bennett accepted the plea and set sentencing for Aug. 3. At that time, Green faces up to 20 years in federal prison as well as a possible $250,000 maximum fine.

Green was permitted to remain on bond pending sentencing.

The FBI conducted the investigation. Assistant U.S. Attorney Thomas Carter prosecuted the case.

CORPUS CHRISTI, Texas – A 39-year-old local man has been ordered to federal prison for attempting to possess with intent to distribute 6.8 kilograms of meth, announced U.S. Attorney Alamdar S. Hamdani.

Lawrence Hyde pleaded guilty Jan. 3.

Today, U.S. District Judge Drew Tipton ordered Hyde to serve 180 months in federal prison to be immediately followed by five years of supervised release. At sentencing, the court heard that this was not the first time Hyde had received narcotics through the mail.

On July 15, 2022, authorities intercepted a package containing 6.8 kilograms of meth addressed to a residence in Corpus Christi. They removed the drugs and subsequently delivered the package.

Law enforcement conducted surveillance of the residence and witnessed Hyde take the package and depart the location, at which time they arrested him.

Hyde ultimately admitted to knowing there were narcotics in the package and intended to deliver it to another individual. The total weight was approximately 6.8 kilograms of meth with an estimated street value of $200,000

Hyde has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Drug Enforcement Administration conducted the investigation with the assistance of the United States Postal Service. Assistant U.S. Attorneys Patrick Overman and John Marck prosecuted the case.

GALVESTON, Texas – Three individuals have been sent to prison for their roles in bank robberies that occurred in Brazoria and Wharton, announced U.S. Attorney Alamdar S. Hamdani.

Tony Wayne Mitchell, 46, and Kevin McCoy, 33, both of Houston, and Mikell Phillips, 41, Dallas, all pleaded guilty between March 2022 and September 2022. Each admitted to conspiracy to commit bank robbery by force or violence. Mitchell also admitted to brandishing a firearm in relation to a crime of violence.

Today, U.S. District Jeffery V. Brown handed Mitchell a 60-month term of imprisonment, while McCoy and Phillips received 48 and 54 months, respectively, for the robbery conspiracy. Mitchell also received 84 months for the firearms conviction which must be served consecutively to the other sentence imposed. His total 144-months prison term will be immediately followed by five years of supervised release while the other two will be on supervised release for three years.

“While one of them held a gun, four men robbed banks in small, rural towns and terrorized the employees,” said Hamdani. “One of the robbers died while trying to flee, but the other three, with today’s sentence, will face the long arm of justice.”   

Mitchell, McCoy and Phillips were members of a four-man armed robbery crew who targeted bank branches situated in small rural towns surrounding Houston. Between 2018 and 2019, the crew robbed two banks in Brazoria and Wharton. During each crime, two or three men entered the banks brandishing firearms while wearing masks and hoodies. One man would vault the teller counter while they gathered the cash and put employees in offices, supply closets or the bank vault. They then exited the banks on foot.

A Crime Stoppers tip and prescription eyeglasses led authorities to the men.

Phillips was involved with only one robbery. He was the only person who did not enter the bank during the heist but did attempt to dispose of monies from the Wharton bank robbery. 

The fourth member of the crew died in a car crash during his attempt to flee from law enforcement.  

Mitchell, McCoy and Phillips have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

FBI Texas City conducted the investigation with the assistance of police departments in Brazoria and Wharton. Assistant U.S. Attorney Kenneth Cusick prosecuted the case.

BROWNSVILLE, TEXAS – A 28-year-old San Benito resident has been ordered to federal prison after being convicted of possession with intent to distribute cocaine and conspiracy to do so, announced U.S. Attorney Alamdar S. Hamdani.

A federal jury convicted Baltazar Reyes-Herrera Jan. 20, following a two-day-trial and approximately seven hours of deliberation.

Today, U.S. District Judge Fernando Rodriguez Jr. ordered Reyes-Herrera to serve 100 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard additional evidence that Reyes-Herrera was taking 18 bundles of cocaine to Mississippi for payment of $10,000 and bringing the currency back for the sale of the 19.52 kilograms of cocaine. In handing down the sentence, the court noted the amount of cocaine and the harm it brings to individuals in the United States.

On Oct. 19, 2020, Reyes-Herrera arrived at the Sarita checkpoint close to midnight driving a tractor trailer. He told authorities he was driving to Houston to pick up a truck from an auction. Following a K-9 alert, law enforcement crawled underneath the tractor and observed handprints on the bolts that hold the rear differential in place. Reyes-Herrera denied knowledge of the 18 bundles of cocaine concealed in the hollow differential. 

The estimated street value of the drugs is $500,000.

According to evidenced present at trial, Reyes-Herrera purchased truck insurance two hours prior to arriving at the checkpoint. He did not have valid travel logs for the trip and did not possess a valid commercial license.

Reyes-Herrera will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in

McALLEN, Texas – A 21-year-old Pharr resident has pleaded guilty to smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.

Pedro Cruz Almeida Jr. admitted to attempting to export .50 caliber tracer-equipped linked ammunition without a license to export.

On Feb. 3, Almeida was driving a red Hyundai Elantra, at which time authorities conducted a traffic stop.

A subsequent search led to the discovery of 600 rounds of .50 caliber ammunition in the vehicle. Almeida admitted he intended to transfer the ammunition to an individual waiting at the Port of Entry driving a vehicle with a Tamaulipas, Mexico, license plate. In Mexico, he received cash to order the ammunition. Almeida admitted he ordered ammunition approximately 30 occasions over the past year.

On Feb. 9, agents subsequently seized an additional 300 rounds of .50 caliber ammunition postmarked to Almeida.

At the plea today, Almeida informed the court he was attending a local police academy at the time of his arrest.

U.S. District Judge Micaela Alvarez accepted the plea and set sentencing for July 27. At that time, Almeida faces up to 10 years in federal prison.

Almeida was permitted to remain on bond pending sentencing

Homeland Security Investigations conducted the investigation with the assistance of the Hidalgo County Constable’s Office. Assistant U.S. Attorney Peter I. Brostowin is prosecuting the case.

This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

HOUSTON ‐ A 24-year-old Pasadena man has been sent to federal prison following his conviction of firearm and drug trafficking offenses related to his role in the shooting of a Houston Police Department (HPD) officer, announced U.S. Alamdar S. Hamdani.   

Jimmy Caston Bryan pleaded guilty Oct. 13, 2022, to possessing with intent to distribute meth and to carrying and discharging a firearm during and in relation to a drug trafficking crime.

Today, Chief U.S. District Judge Lee H. Rosenthal handed Bryan a 100-month term of imprisonment for drug trafficking meth. He also received 120 months for the firearms charge which must be served consecutively to the other sentence imposed. The total 220-month prison term will be immediately followed by five years of supervised release. In handing down the sentence, the court noted Bryan’s lengthy criminal history and the violent nature of the offense.

“Almost a year ago, Bryan, a known drug trafficker, shot an HPD officer during a traffic stop,” said Hamdani. “That cruel act carries severe consequences, especially in the federal system, and today’s 220-month prison sentence reflects those consequences.” 

At the time of his plea, Bryan admitted that on May 4, 2022, he fired multiple shots at an HPD officer near 14300 Gulf Freeway.

Bryan previously trafficked narcotics in the Houston area, had possessed meth and was believed to be in the possession of multiple firearms. On May 4, 2022, authorities conducted a traffic stop, at which time two HPD officers approached Bryan’s truck and requested identifying information.

Bryan did not comply which led law enforcement to ask him to step out of the vehicle. As one officer opened Bryan’s door, Bryan quickly reached into his waistband and pulled out a semi-automatic handgun.

At the time of his plea, Bryan also admitted he shot and struck the other HPD officer twice - once in the chest and once in the right hip.

Both officers returned gunfire and struck Bryan.

A search of Bryan’s vehicle revealed over 48 grams of meth, heroin, cocaine, ecstasy, a digital scale and two additional handguns.   

Bryan has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Drug Enforcement Administration, HPD, Texas Department of Public Safety and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Michael Day prosecuted the case.

McALLEN, Texas – Two Mission men have pleaded guilty for their roles in a cocaine trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani.

In October 2022, Eddie Perez, 29, was supposed to deliver narcotics to another individual on behalf of his friend Juan Alberto Mendez Jr., 28.

Authorities were conducting surveillance at a Best Buy parking lot in McAllen They saw vehicles approach, after which Perez removed bags containing bricks of cocaine from the trunk of his vehicle.

Mendez was parked in another vehicle observing the transaction.

Law enforcement approached and arrested Perez and Mendez immediately.  They seized a total of 20 kilograms of cocaine.

Both admitted to conspiracy to possess with intent to distribute 20 kilograms of cocaine.

U.S. District Judge Marina Garcia Marmolejo accepted the pleas and set sentencing for July 24. At that time, both face a minimum of 1o years and up to life in prison as well as a possible $10 million maximum fine.

Mendez was permitted to remain on bond pending sentencing and Perez has been and will remain in custody pending sentencing.

The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case.

McALLEN, Texas – A 39-year-old Edinburg woman has pleaded guilty to importing 24 kilograms of crystal meth into the United States from Mexico, announced U.S. Attorney Alamdar S. Hamdani.

On April 17, 2022, Nelly Guerra attempted to make entry into the United States through the Donna Port of Entry. During inspection, authorities discovered 15 packages concealed within the side panels of the vehicle.

The investigation revealed the substance was meth with a purity level of 90%.

U.S. District Judge Hinojosa will impose sentencing July 26. At that time, Guerra faces a mandatory minimum of 10 years and up to life in federal prison.

She has been and will remain in custody pending sentencing.   

Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and Customs and Border Protection. Assistant U.S. Attorney Devin V. Walker is prosecuting the case.

LAREDO, Texas – A total of seven local residents have been convicted of conspiring to conduct illegal gambling in Webb and Zapata counties, announced U.S. Attorney Alamdar S. Hamdani.

Hilda Diana Guerra-Villarrea, 74, Raul Rene Villarreal, 51, and Alma Urania Garcia, 33, all of Zapata, pleaded guilty today to conspiring to conduct and conducting illegal gambling at locations in Webb and Zapata counties.

Four others - Rodolfo Ricardo Villarreal Jr., 37, Juan Vasco, 52, and Ruben Samuel Villarreal, 28, all from Zapata and Maria Mendieta, 42, Bruni - entered their pleas to the same charges in 2022.

The investigation revealed a complex conspiracy which began in 2019. As part of the scheme, various members of the Villarreal family conspired to operate a family-run illegal gambling business at multiple establishments in Webb and Zapata Counties near the city of Laredo. This included the Lucky Spins (Red Barn) in Bruni, Desert Diamond in Falcon and Golden Amusement in Zapata.

Members of the family and their close associates owned and operated the establishments and illegally made cash payouts to customers.

As part of her plea today, Guerra-Villarreal agreed to the forfeiture of an estimated $2.6 million in the form of land, buildings and gambling machines.

U.S. District Judge Diana Saldana will impose sentencing for all at a later date. At those hearings, each faces up to five years in prison and a possible $250,000 fine.

All seven have been permitted to remain on bond pending that hearing.

Homeland Security Investigations investigated the case with assistance from the Laredo Police Department, Texas Department of Public Safety and Webb County District Attorney’s Office.

Assistant U.S. Attorney Francisco J. Rodriguez, Mary Ellen Smyth, Gerard Cantu and Matthew Isaac are prosecuting the case.

McALLEN, Texas – A 50-year-old Alton resident has admitted he aided and abetted another man to bring meth into the country, announced U.S. Attorney Alamdar S. Hamdani.

On April 22, 2021, Argelio Chavero drove a Chevrolet Trailblazer into Mexico from the United States with Agustin Romero Jr. in the passenger seat.

They returned two days later. Chavero entered the country through the Hidalgo port of entry pedestrian lane. At the same time, Chavero was driving the Trailblazer which was loaded with narcotics.  

Upon entry, authorities referred him and the vehicle to secondary inspection where they discovered anomalies in the fuel tank area. A physical search resulted in the seizure of 33 packages of meth and marijuana.

The weight of the meth was approximately 12 kilograms and had an estimated street value of approximately $70,000.

Further investigation led to the identification of Chavero.

Romero, 40, a U.S. citizen residing in Reynosa, Tamaulipas, Mexico, previously pleaded guilty for his role. At that time, he admitted he received payment from Chavero to drive the vehicle.

U.S. District Judge Marina G. Marmolejo accepted the plea today. U.S. District Judge Ricardo H. Hinojosa will impose sentencing for Romero and Chavero May 25 and July 26, respectively. At that time, Romero and Chavero both face a mandatory minimum of 10 years and up to life in prison and a possible $250,000 maximum fine.

Both have been and will remain in custody pending that hearing.

Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Colton Turner and Eliza Rodriguez are prosecuting the case.

McALLEN, Texas – A 34-year-old local man has been convicted of drug trafficking after trying to escape drug house through an attic vent, announced U.S. Attorney Alamdar S. Hamdani.

Adan Ontiveros Jr. pleaded guilty to conspiring to possess with the intent to distribute nearly 2,500 kilograms of marijuana.

On July 16, 2020, law enforcement was conducting surveillance at a suspected drug house in Roma. There, they saw a man - Ontiveros - attempting to discretely exit the residence. He was trying to escape via an attic vent. However, authorities quickly took him into custody.  

They obtained a search warrant and ultimately discovered several hundred bundles of marijuana. The total weight was 2,477 kilograms with an approximate value of more than $33 million.

He admitted he was aware there was marijuana inside the stash house.

U.S. District Judge Richardo Hinojosa will impose sentencing July 27. At that time, Ontiveros faces up to life in prison as well as a maximum $10 million possible fine.

The Texas Department of Public Safety and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Matthew Phelps and Roberto Lopez Jr. are prosecuting the case.

HOUSTON – A 61-year-old doctor and a compounding pharmacy he operates paid the United States $7,963,246 to resolve claims they improperly billed the Department of Labor, Office of Workers’ Compensation Program (DOL-OWCP), announced U.S. Attorney Alamdar S. Hamdani.

Dr. Ajay Kumar Aggarwal and Medley Compounding Pharmacy LLC knowingly and willfully submitted, or caused the submission of, false claims to DOL-OWCP. The claims for payment were for compounding creams, gels and pain patches that were neither medically necessary nor medically beneficial to the patients. The investigation revealed DOL-OWCP beneficiaries were receiving excessive and unnecessary medication through the U.S. mail. 

“It is particularly egregious when providers who participate in federally funded programs like OWCP violate their responsibility to the public to provide legitimate, necessary and safe treatment,” said Hamdani. “We are not going to stand by when such people take advantage of federal employee health insurance programs and dispense unnecessary medications and services to the federal workforce. The significant penalty announced today is an example of that effort.”

Aggarwal owned and operated A.A. Texas Anesthesiology Back Pain Center where he allegedly wrote and issued prescriptions for compound pain medications to injured federal employees with federal worker’s compensation benefits. Medley filled the prescriptions.

Aggarwal’s wife owned Medley on paper. Medley began billing DOL in 2013, a year after it opened.

The investigation began when an individual employed at Medley filed a qui tam aka whistleblower lawsuit under seal Oct. 10, 2017. During his term of employment, the whistleblower allegedly witnessed patients being sent unnecessary, unwanted medications through the United States mail despite the fact they did not need and could not benefit from the medications. In a few instances, patients did not see, or ever meet, Aggarwal. Medley employees were allegedly instructed to auto-fill medications on a monthly basis and to use pre-printed prescription pads to submit the prescriptions to DOL-OWCP without consideration of medical need. 

“This settlement is a testament to the dedication and determination of the investigative and legal teams,” said Special Agent in Charge Jonathan Ulrich, U.S. Postal Service - Office of Inspector General (USPS-OIG). “USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to root out fraud, waste and abuse.”

“Protecting the integrity of the programs administered by OWCP is an important part of the mission of DOL-OIG. We will continue to work with OWCP and the Department of Justice to vigorously pursue allegations of fraud involving these programs,” said Special Agent-in-Charge Steven Grell, Central Region, DOL-OIG.

Under the False Claims Act, a private party known as a relator can file an action on behalf of the United States and receive a portion of the recovery. In this case, the relator will receive a total of $1,353,752.

DOL-OIG and USPS-OIG conducted the investigation. Assistant U.S. Attorney Jill O. Venezia handled the matter.

CORPUS CHRISTI, Texas – A 57-year-old man has pleaded guilty to possession with intent to distribute more than 180 grams of meth, announced U.S. Attorney Alamdar S. Hamdani.

On March 17, authorities encountered Sean Graham at a local restaurant. There, he appeared nervous and soon admitted he had meth in his truck. They searched his truck and found several bags containing approximately 80 grams of meth of the drug in the truck.

Law enforcement then obtained a search warrant for his residence where they found an additional 100 grams of meth. Some was located inside an Airwick air freshener.

The total weight was approximately 180.4 grams.

U.S. District Judge Drew Tipton will impose sentencing July 24. At that time, Graham faces up to life in prison and a possible $10 million maximum fine.

Graham has been and will remain in custody pending that hearing.

Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and the Corpus Christi Police Department. Assistant U.S. Attorney Patrick Overman is prosecuting the case.

McALLEN, Texas – A 52-year-old Edinburg man has entered a guilty plea to federal program bribery, announced U.S. Attorney Alamdar S. Hamdani.

Miguel A. Garza admitted his involvement in a scheme to help funnel bribe money from a McAllen-area business owner to certain officials with the City of Edinburg. In exchange, they were to award a city contract to the businessman.

“Funneling bribes damages the foundations of city governments, such as Edinburg,” said Hamdani. “Our office will be relentless in seeking justice against actors who threaten to crumble those foundations through their criminal acts.” 

During the plea today, Garza admitted that during 2019 and 2020, he was acting as a political consultant on behalf of two elected officials in Edinburg. He told a local business owner he could secure votes from the officials relating to contracts the city maintained in exchange for bribe payments to the officials. 

He then collected a series of payments intending to provide them to the city officials in exchange for their votes.

As part of the plea today, Garza admitted to the political payments which totaled $47,235 between approximately June 1, 2019, and March 1, 2020.

U.S. District Judge Ricardo H. Hinojosa will impose sentence July 31. At that time, Garza faces up to 10 years in prison and a possible $250,000 maximum fine.

He was permitted to remain on bond pending that hearing.

The FBI conducted the investigation. Assistant U.S. Attorneys Robert L. Guerra Jr. and Arthur R. Jones are prosecuting the case.

HOUSTON – E. I. du Pont de Nemours and Company Inc. (DuPont) pleaded guilty and has been sentenced for criminal negligence in connection with a 2014 accident that left four company employees dead, announced U.S. Attorney Alamdar S. Hamdani.

On Nov. 15, 2014, DuPont released approximately 24,000 pounds of a highly toxic, flammable gas called methyl mercaptan (MeSH) into the air. In addition to killing the four, the chemical release injured other DuPont employees and travelled downwind into the surrounding areas.

The company pleaded guilty today along with Kenneth Sandel, 52, Friendswood, unit operations leader of the Insecticide Business Unit (IBU) where the accident occurred.

U.S. District Judge Lee H. Rosenthal ordered DuPont to pay a $12 million penalty. The company must also serve two years of probation during which time the company must give the U.S. Probation Office full access to all of its operating locations. Judge Rosenthal also ordered Sandel to serve one year of probation. At the hearing, the court asked DuPont’s corporate representative whether the company had to publicly disclose their conviction, noting the importance of that fact.

They will also make a $4 million community service payment to the National Fish and Wildlife Foundation to address the harm they caused by funding  projects that benefit air quality in and around areas adjacent to the western shores of Galveston Bay.

As a result of this case and other related civil cases tied to the explosion, DuPont will have paid a total of $19.26 million for its unlawful conduct.

“Four employees are dead because of DuPont’s criminal negligence,” said Hamdani. “The sentence imposed today sends a clear message of my office’s dedication to holding managers at industrial facilities, and the corporations that own and operate those facilities, accountable for violations of federal criminal laws; laws meant to protect the safety of workers and nearby communities.”

“The failure to follow required chemical safety procedures at Dupont’s La Porte facility resulted in the deaths of four employees,” said Acting Assistant Administrator Larry Starfield for the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “This case demonstrates the importance of holding chemical facilities accountable for implementing chemical safety requirements that are designed to protect workers and neighboring communities.”

DuPont is headquartered in Wilmington, Delaware, and owns chemical manufacturing plants around the world including a facility in La Porte. As part of its operations, the facility produces pesticides called Lannate and Vydate among other products.

The release of the MeSH on Nov. 15, 2014, resulted in the introduction of the pesticides into the air which travelled downwind into the city of Deer Park and beyond. In addition to killing the four employees, several others were injured.

The fatal accident occurred after an employee inadvertently left open a piping valve which caused a slushy material to block the flow of liquid MeSH into the Lannate process. To melt it, DuPont day shift employees began applying hot water to the outside of the blocked piping and opened other valves to vent MeSH gas into a waste gas system. However, the MeSH piping was still blocked at the end of the day.

As the IBU leader, Sandel was responsible for ensuring shift supervisors, operators and engineers understood and complied with government safety, health and environmental regulations. Specifically, Sandel was responsible for implementing a safety procedure at the IBU by making sure employees understood and followed the procedure’s requirements and did not release toxic chemicals inappropriately to the environment.

Sandel and other employees failed to provide sufficient instructions to the oncoming shift for how to safely clear remaining blockage. It finally cleared early the next morning, and a large volume of liquid MeSH began flowing into the waste gas system. At that time, an employee mistakenly believed the waste gas system only contained materials present during normal operations and opened valves that resulted in the release of the toxic gas. 

Records indicate employees at DuPont’s LaPorte plant disregarded a federally mandated safety procedure when opening those valves on the waste system. Sandel should have known operators did not have a safe and effective way to drain the vent system and should have prevented it from happening. 

As part of the pleas, DuPont and Sandel admitted to negligently releasing an extremely hazardous substance into the ambient air. The company also acknowledged negligently placing a person in imminent danger of death or serious bodily injury in violation of the federal Clean Air Act.

The IBU has since been demolished.

The charges against DuPont and Sandel are part of an EPA initiative titled Reducing Risks of Accidental Releases at Industrial and Chemical Facilities. EPA’s Criminal Investigation Division in Texas conducted the investigation with assistance from the Texas Environmental Enforcement Task Force and Texas Commission on Environmental Quality. 

Assistant U.S. Attorneys (AUSA) John R. Lewis and Belinda Beek and Special AUSA Kristina Gonzales are prosecuting the case with assistance from the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.

McALLEN, Texas – A 61-year-old Harlingen resident, and former Southwest Key employee, has been charged with multiple counts of sexual contact with a ward, announced U.S. Attorney Alamdar S. Hamdani.

Authorities arrested Rodolfo Alanis today. He is expected to make his initial appearance before U.S. Magistrate Judge J. Scott Hacker tomorrow at 9 a.m.

A federal grand jury returned the three-count indictment April 18, which was unsealed upon his arrest.

“The migrant children in these facilities are the most vulnerable; they are alone and often do not speak the language,” said Hamdani. “We have to entrust them to the care of others while there and as they are transported from point A to point B. As such, my office will seek to hold those accountable who allegedly violate that trust. These allegations are serious and we will follow the case to its end to ensure justice is served overall, but especially on behalf of any potential young victim.”

According to the charges, Alanis was a youth care worker at Southwest Key in both McAllen and Brownsville. Southwest Key operates several facilities that temporarily house immigrant children. They have facilities in McAllen and Brownsville. 

Alanis allegedly engaged in sexual contact with three minor children who, at the time, were detained and under the custody and authority of Alanis. The indictment further alleges the sexual contact occurred on three separate occasions while on board an airplane.

If convicted, Alanis faces up to two years imprisonment on each count.

FBI and Department of Health and Human Services - Office of Inspector General and Immigration and Customs Enforcement conducted the investigation with the assistance of Department of Homeland Security-Office of Inspector General. Assistant U.S. Attorney Laura Garcia and Alexa Parcell 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.