Southern District of Texas

HOUSTON – A federal grand jury in Houston has returned an indictment charging five men and one woman with aiding and abetting the use of a firearm to commit murder in aid of racketeering.

The six defendants are alleged members of the 100% Third Ward (103) Gang, which operates in and around the Third Ward area of Houston.

This is the first indictment returned as part of the Department of Justice Criminal Division’s Violent Crime Initiative conducted in partnership with the U.S. Attorney’s Office for the Southern District of Texas (SDTX) and local, state and federal law enforcement. This joint effort, first announced in September 2022, concentrates on addressing violent crime by employing, where appropriate, federal racketeering laws to prosecute gang members in the southwest and southeast areas of Houston. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecute violent offenders and to assist intervention, prevention and reentry efforts to address the root causes of violent crime, including through funding provided by the department’s Office of Justice Programs.

“Since we announced the Violent Crime Initiative less than six months ago, our dedicated prosecutors and agents have been working tirelessly to target the ‘worst of the worst’ violent gang members that are terrorizing Houston residents,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “These efforts have led to today’s announcement of an indictment charging half a dozen 103 Gang members with murder as part of their war with a rival gang. But we recognize that the fight against violent crime requires more than just enforcement actions and we are continuing to engage directly with the community to build trust and allow for meaningful and sustained change.”

“To gang members and others infecting our streets with this type of crime – the power of the federal government is here. We will not stop. We will find you. No matter how long it takes, we will prosecute and ensure you pay the price for your actions,” said SDTX U.S. Attorney Alamdar S. Hamdani. “A priority of this office, every day, is for the Third Ward’s children to feel safe in their homes and on the streets from the terror of local gangs, and we will work with all partners and use all tools to make that priority a reality.”

The defendants are Shaquile O’Neal Richards, 29; Alexandra Elizabeth Nicks, 23; Deandre Watson, 24; Marcus Dewane Christopher, 26; Marquis Juwan Erskin, 29; and Mertroy Harris, 32.

The defendants, all from Houston, are charged with their involvement in a murder that occurred on London Street in the Third Ward in Houston in October 2017.

As alleged in the indictment, returned March 9, Richards was incarcerated in a state prison for aggravated robbery when he and Nicks ordered 103 Gang members to shoot members of a rival gang as part of an ongoing gang war. On Oct. 16, 2017, Watson, Christopher, Erskin and Harris allegedly saw someone they believed was a rival gang member. They allegedly opened fire at that individual, who was standing with another man. The suspected rival gang member was shot and injured, but the other victim, not part of any gang, was killed. 

After the shooting, Watson, Christopher, Erskin and Harris allegedly attempted to flee in a stolen car but drove into a ditch. The four allegedly fled that car, and Watson, Christopher and Erskin then carjacked another vehicle by forcing a woman and child from it.

According to the indictment, the 103 Gang is an enterprise that engaged in criminal acts involving murder, robbery, narcotics distribution and assault. The 103 Gang allegedly recruits new members primarily from the neighborhoods within the Third Ward area. Gang members use violence, threats of violence and intimidation to protect the power, reputation and territory of the 103 Gang, according to the indictment.

“These indictments highlight he Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) commitment to investigating and bringing to justice those who use firearms to terrorize our communities,” said ATF Special Agent in Charge Fred Milanowski. “Our streets are safer today because of the diligent work done on this case by ATF and our local, state and federal law enforcement partners that comprise the Violent Crime Initiative.”

“Gang violence impacts nearly every aspect of our communities, from the safety of our streets to the quality of life in our neighborhoods,” said Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division. “The FBI will continue to work with our partners and use every available tool to combat the fear and violence caused by these gangs and bring them to justice.”

“The commitment to putting violent offenders in jail and getting guns off our streets is a high priority,” said Chief Troy Finner of the Houston Police Department (HPD). “I am so grateful and proud of this collaboration with our federal partners that allows us to continue to put criminals in jail and seek justice for those victimized by violent crime.”

If convicted, each defendant faces a maximum penalty of life in prison or death.

The ATF, FBI and HPD conducted the investigation the case with assistance from the Texas Anti-Gang Center.

Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case along with Trial Attorneys Ralph Paradiso and Sheila Lafferty of the Criminal Division’s Organized Crime and Gang Section.

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

The Department of Justice today announced an indictment charging five men and a woman with aiding and abetting the use of a firearm to commit murder in aid of racketeering.

The six defendants are alleged members of the 100% Third Ward (103) Gang, which operates in and around the Third Ward area of Houston.

This is the first indictment returned as part of the Department of Justice Criminal Division’s Violent Crime Initiative conducted in partnership with the U.S. Attorney’s Office for the Southern District of Texas and local, state, and federal law enforcement. This joint effort, first announced in September 2022, concentrates on addressing violent crime by employing, where appropriate, federal racketeering laws to prosecute gang members in the southwest and southeast areas of Houston. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecute violent offenders and to assist intervention, prevention, and reentry efforts to address the root causes of violent crime, including through funding provided by the department’s Office of Justice Programs. 

“Since we announced the Violent Crime Initiative less than six months ago, our dedicated prosecutors and agents have been working tirelessly to target the ‘worst of the worst’ violent gang members that are terrorizing Houston residents,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These efforts have led to today’s announcement of an indictment charging half a dozen 103 Gang members with murder as part of their war with a rival gang. But we recognize that the fight against violent crime requires more than just enforcement actions and we are continuing to engage directly with the community to build trust and allow for meaningful and sustained change.”

“To gang members and others infecting our streets with this type of crime – the power of the federal government is here. We will not stop. We will find you. No matter how long it takes, we will prosecute and ensure you pay the price for your actions,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “A priority of this office, every day, is for the Third Ward’s children to feel safe in their homes and on the streets from the terror of local gangs, and we will work with all partners and use all tools to make that priority a reality.”

The defendants are Shaquile O’Neal Richards, 29; Alexandra Elizabeth Nicks, 23; Deandre Watson, 24; Marcus Dewane Christopher, 26; Marquis Juwan Erskin, 29; and Mertroy Harris, 32.

The defendants, all from Houston, are charged with their involvement in a murder that occurred on London Street in the Third Ward in Houston in October 2017.

As alleged in the indictment, Richards was incarcerated in a state prison for aggravated robbery when he and Nicks ordered 103 Gang members to shoot members of a rival gang as part of an ongoing gang war. On Oct. 16, 2017, Watson, Christopher, Erskin, and Harris allegedly saw someone they believed was a rival gang member. They allegedly opened fire at that individual, who was standing with another man. The suspected rival gang member was shot and injured, but the other victim, not part of any gang, was killed.  

After the shooting, Watson, Christopher, Erskin, and Harris allegedly attempted to flee in a stolen car but drove into a ditch. The four allegedly fled that car, and Watson, Christopher, and Erskin then carjacked another vehicle by forcing a woman and child from it.

“These indictments highlight the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) commitment to investigating and bringing to justice those who use firearms to terrorize our communities,” said Special Agent in Charge Fred Milanowski of the ATF. “Our streets are safer today because of the diligent work done on this case by ATF and our local, state, and federal law enforcement partners that comprise the Violent Crime Initiative.”

“Gang violence impacts nearly every aspect of our communities, from the safety of our streets to the quality of life in our neighborhoods,” said Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division. “The FBI will continue to work with our partners and use every available tool to combat the fear and violence caused by these gangs and bring them to justice.”

“The commitment to putting violent offenders in jail and getting guns off our streets is a high priority,” said Chief Troy Finner of the Houston Police Department (HPD). “I am so grateful and proud of this collaboration with our federal partners that allows us to continue to put criminals in jail and seek justice for those victimized by violent crime.”

According to the indictment, the 103 Gang is an enterprise that engaged in criminal acts involving murder, robbery, narcotics distribution, and assault. The 103 Gang allegedly recruits new members primarily from the neighborhoods within the Third Ward area. Gang members use violence, threats of violence and intimidation to protect the power, reputation, and territory of the 103 Gang, according to the indictment.

If convicted, each defendant faces a maximum penalty of life in prison or death.

The ATF, FBI, and HPD investigated the case with assistance from the Texas Anti-Gang Center.

Trial Attorneys Ralph Paradiso and Sheila Lafferty of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Richard Hanes and Heather Winter for the Southern District of Texas are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

LAREDO, Texas – A 49-year-old Nicaraguan citizen illegally in the United States has pleaded guilty to conspiracy to transport undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.

On June 6, 2022, Arling Antonio Gutierrez-Garcia drove a semi-tractor pulling a belly dump trailer with 63 citizens from Mexico and Guatemala. The metal trailer was covered with a vinyl tarp, thereby eliminating air circulation and increasing temperatures which led to the aliens’ distress.

Gutierrez-Garcia noticed them jumping out the trailer from a tear in the tarp they had made. He then stopped the semi-tractor in west Webb County on a private ranch road where law enforcement saw him standing by the cab.

Law enforcement and medical personnel provided assistance to the  individuals located in the trailer and brush. One alien was found at the bottom of the trailer’s pit and pronounced dead at the scene.

Authorities apprehended Gutierrez-Garcia in the brush, at which time he claimed he was being transported with the others. However, the investigation revealed he was the driver of the vehicle.

“Transporting dozens of human beings in a vinyl-covered all metal trailer in the South Texas summer heat demonstrates the callousness and indifference of smugglers to human life,” said Hamdani. “The sweltering heat that built up in this vehicle which was designed not for people, but for hauling sand, rock and other materials maximized the potential for injury and the eventual and tragic death of one of the victims. This defendant will now face substantial consequences for his inhumane crime.” 

U.S. District Judge Diana Saldaña accepted the plea and will impose sentencing at a later date. At that hearing, Gutierrez-Garcia faces up to life in federal prison and a possible $250,000 fine.

He has been and will remain in custody pending sentencing.

Homeland Security Investigations conducted the investigation with the assistance of Border Patrol, Sheriff’s Offices in Webb and Dimmit Counties, Webb County District Attorney’s Office, Texas Department of Public Safety and Texas Highway Patrol. Assistant U.S. Attorney Homero Ramirez is prosecuting the case.

HOUSTON – A 43-year-old Houston woman has been charged for conspiracy to commit and committing health care fraud, announced U.S. Attorney Alamdar S. Hamdani.

Rose Davies is expected to make her initial appearance before U.S. Magistrate Judge Dena H. Palermo at 2 p.m.

A federal grand jury returned a six-count indictment March 1 against Davies.

The charges allege Davies owned Pri Home Healthcare in Houston from 2012 to 2020. During that time, she allegedly paid recruiters and doctors to bill Medicare for home health care services using Medicare beneficiary information regardless of whether they needed home health care services or not.  

If convicted, Davies faces up to 10 years in federal prison for each of the five counts of health care fraud as well as another five years for the conspiracy. All charges also carry a potential $250,000 maximum fine.

Department of Health and Human Services - Office of Inspector General and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorneys Grace Murphy and James Hu 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.

HOUSTON – A 24-year-old Houston resident has been ordered to federal prison for his role in trafficking drugs in the metro area, announced Attorney Alamdar S. Hamdani.

Alberto Serna pleaded guilty Oct. 27, 2022, to possession with the intent to distribute meth.

Today, U.S. District Judge Kenneth Hoyt sentenced Serna to serve 168 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard evidence that Serna was held accountable for 7,513 grams of meth.

“Meth kills and destroys entire communities, and my office will use all means necessary to stop the proliferation of toxic drugs that inflict harm on our citizens” said Hamdani. “You can’t sell kilograms of drugs in the Southern District of Texas without paying a hefty price, and today’s sentence represents that.”

On April 15, 2022, law enforcement learned Serna would be transporting a large amount of narcotics. They conducted surveillance and observed Serna committing suspicious activity. A joint effort led to a traffic stop, at which time authorities inspected his vehicle and discovered over eight kilograms of meth.

The drugs had an estimated street value of $130,000.

At the time of his plea, Serna admitted he possessed the meth with the intent to distribute it.

Serna 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 Harris County Precinct 3 Constable’s office.

Assistant U.S. Attorney Stuart A. Burns prosecuted the case.

LAREDO, Texas – Five U.S. citizens and one Mexican national have been convicted of conspiring to possess with the intent to distribute a total of approximately 75 kilograms of meth associated with an independent drug cartel located in Michoacan, Mexico, announced U.S. Attorney Alamdar S. Hamdani.

Gerardo Martinez, 63, Laredo, pleaded guilty to leading a conspiracy to bring meth into the United States from Mexico and on to San Antonio, Dallas and beyond. Maria Valdez, 30, Rodrigo Sandoval, 31, and Karina Garcia, 26, all also of Laredo, previously pleaded guilty to their roles in the conspiracy as did Mexican national Jose Alfredo Cruz-Salas, 37, and Ernesto Diaz-Velazquez, 40, Dallas.

The investigation revealed a complex conspiracy which began Feb. 1, 2017, and continued through Sept. 29, 2018. Martinez assisted drug traffickers in Mexico by finding and recruiting drivers willing to transport large quantities of high-purity meth through Laredo and further into the United States.

As part of his plea today, Martinez admitted to coordinating five drug trafficking events involving the illegal distribution of meth through Laredo.

Sandoval, Cruz-Salas, Valdez, Diaz-Velazquez and Garcia each previously pleaded guilty to conspiring to deliver and transport meth through Laredo while working for Martinez. Martinez maintained a front as an independent taxi driver while working on behalf of the Michoacan cartel.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, each faces up to life in prison and a possible $10 million maximum fine.

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

The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Codigo Siete with the assistance of the Texas Department of Public Safety, Laredo Police Department and Webb County Sheriff’s Office. 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, mutlti-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 Francisco J. Rodriguez is prosecuting the case.

BROWNSVILLE, Texas – A chief petty officer has been convicted of running a firearms sales business without a license, announced U.S. Attorney Alamdar S. Hamdani.

Matthew Keith Staton was not a licensed dealer of firearms. However, he admitted he sold five Palmetto State Armory “Build the Wall” .308 caliber rifles to Luis Enrique Vallejo. Vallejo, 41, San Benito, was a former law enforcement officer who was federally convicted for his role in attempting to export the same firearms into Mexico with the serial numbers removed.

At the time of the incident, Staton was a member of the U.S. Coast Guard and is currently an E7 chief petty officer.

U.S. District Judge Olvera accepted the plea and has set sentencing for May 31. At that time, Staton faces up to five years in federal prison and a possible $250,000 maximum fine.

Vallejo has already been sentenced to 13 months in federal prison for his crime.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Homeland Security Investigations and the U.S. Coast Guard. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.

HOUSTON – A 52-year-old Pearland resident has pleaded guilty to making false statements in an aircraft maintenance log, announced U.S. Attorney Alamdar S. Hamdani.

Ronald P. Franklin admitted that on or about Oct. 9, 2020, he knowingly and willfully falsified an aircraft’s annual inspection records. Franklin had fraudulently represented himself as an Inspection Authorization (IA) holder and falsely certified he performed an annual inspection on an aircraft and determined it was in airworthy condition. The aircraft subsequently experienced an in-flight power loss leading to a crash.

The Federal Aviation Administration (FAA) regulates domestic aircraft and air travel. They require most U.S.-registered general aviation aircraft to undergo annual inspections to ensure they are airworthy which an FAA-certified mechanic must perform.  

Following an annual inspection, FAA regulations require an IA holder to make an entry in the aircraft’s log book certifying the inspection was properly completed and the furnished information is true and correct. IA holders must certify each annual inspection they perform using their unique FAA certificate number.

Franklin was not an IA holder and did not perform the inspection as he falsely claimed.

U.S. District Judge Keith P. Ellison accepted the plea and has set sentencing for May 24. At that time, Franklin faces up to five years in federal prison as well as a possible $250,000 maximum fine.

Franklin was permitted to remain on bond pending that hearing.

The Department of Transportation – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Christian Latham and Jay Hileman are prosecuting the case.

BROWNSVILLE, Texas – A 33-year-old Houston woman has been found guilty of two counts of drug trafficking, announced U.S. Attorney Alamdar S. Hamdani.

Judge Rolando Olvera deliberated for three days before convicting Brenda Banessa Leal of one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine and one count of possession with intent to distribute. The bench trial began Feb. 27 and concluded March 1.

During trial, the judge heard evidence that since at least 2018, Leal assisted several family members who were part of a drug trafficking organization. She helped transport narcotics, mainly cocaine, from Mexico to Laredo and the Rio Grande Valley. The drugs were  hidden in the rear differential in tractor trailers.

Several members of the organization reside in Cadereyta, Nuevo Leon, Mexico where Leal has lived the majority of her adult life. She also assisted family members in transporting bulk cash money, ammunition and weapons to Mexico.

The court evidence about text and whatsapp messages between co-conspirators, jail call recordings as well as videos detailing Leal’s criminal actions.

The investigation revealed that between February 2021 and June 2021, Leal was the logistics coordinator of the drug trafficking organization. In that role, she coordinated drivers, dealers and cover loads on this side of the border. In June 2021, while Leal and co-conspirators were preparing to unload a tractor truck that contained approximately 33 kilograms of cocaine, the organization got robbed (“ripped”) of the cocaine by another drug trafficking organization.

Authorities apprehended that group shortly after stealing the cocaine from Leal.

The defense attempted to convince the judge that Leal did not have knowledge of the cocaine that was hidden in the tractor trailer and was simply a victim of the “rip crew.” Judge Olvera did not believe those claims and found Leal guilty as charged.

The Drug Enforcement Administration, IRS - Criminal Investigation, U.S. Marshals Service and the High Intensity Drug Trafficking Area Task Force conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Texas Department of Public Safety. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorneys Alejandra Andrade and Ed Rodriguez are prosecuting the case. 

McALLEN, Texas – Two men charged in connection to multiple tractor trailers loads with meth have been ordered to prison, announced U.S. Attorney Alamdar S. Hamdani.

Dorian Hazel Ruiz-Chavez, 36, a citizen of Mexico unlawfully in the United States, pleaded guilty Oct. 25, 2022, while Mario Alberto Ortiz, 43, Edinburg, plead guilty Oct. 3, 2022.

Today, U.S. District Judge Micaela Alvarez ordered Ruiz-Chavez to serve 190 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. Ortiz was ordered to serve a 168 months in federal prison and further ordered to serve three years of supervised release following his prison term. At the hearing, the court heard additional evidence that Ortiz owned a tractor trailer transport company and used his legitimate tractors to help transport narcotics. In sentencing Ruiz, the court noted he had direct contact with the Mexican suppliers. Even though law enforcement had seized large narcotics loads, it did not deter him from again transporting large quantities of 100% pure meth.

Judge Alvarez previously sentenced Luis Ramos, 35, Donna, to 70 months for his involvement.

Roel Longoria, 34, Edinburg, pleaded guilty June 23, 2022, for his role and is scheduled for sentencing May 17.

In September 2020, law enforcement initiated an investigation into a drug trafficking organization in the Rio Grande Valley. They were believed to be involved with the importation of narcotics from Mexico utilizing commercial tractor trailers with hidden compartments.

Ruiz-Chavez would coordinate with a Mexican narcotics supplier who would send the tractor trailers across into the United States. Once there, Ruiz-Chavez worked with additional individuals to store and transport the trailers further north. Longoria and Ortiz were tasked with finding willing drivers to transport the narcotics-laden trailers after they entered the United States.

On Nov. 12, 2020, law enforcement seized a tractor trailer after it entered the United States through the Laredo Port of Entry. The trailer contained 119 kilograms of meth within a hidden compartment. On April 26, 2021, law enforcement again seized a tractor trailer after it entered the United States through the Pharr Port of Entry. The trailer contained 90 kilograms of meth within a hidden compartment. Both trailers were supposed to be transported at the direction of Ruiz-Chavez.

Following the seizures, the organization changed tactics and began to transport narcotics in smaller loads within passenger vehicles.

On May 12, 2021, Ramos received 42 kilograms of meth and was to transport it the following day in his personal vehicle. However, authorities stopped him and took him into custody. Ortiz recruited Ramos to transport the narcotics.

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

The Drug Enforcement Administration conducted the investigation with the assistance of the Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Laura Garcia prosecuted the case.

BROWNSVILLE, Texas – A 30-year-old Mexican citizen has pleaded guilty to attempted alien smuggling resulting in death, announced U.S. Attorney Alamdar S. Hamdani.

Miguel Angel Ceballos-Acuna pleaded guilty today to attempted alien smuggling resulting the death of one minor child.

On March 22, 2022, law enforcement responded to reports of suspecting alien smuggling near the border fence on the University of Texas – Rio Grande Valley (UTRGV) campus. Two individuals had crossed the border fence and got into a white SUV. Authorities then engaged in a high speed pursuit of the vehicle, which ran multiple red lights, but eventually disengaged pursuit due to safety concerns.

However, the vehicle continued traveling at a high rate of speed and crashed into a utility pole in a residential neighborhood. When law enforcement arrived on scene, they discovered the body of a 14-year-old Mexican citizen.

As part of his plea, Ceballos-Acuna admitted he and another individual had driven the white SUV that day to pick up an alien who had illegally entered the United States. When they arrived at the UTRGV campus, two aliens entered the vehicle, including the minor victim. Ceballos-Acuna admitted he knew the minor victim was unlawfully present in the United States. Nevertheless, he attempted to transport the victim which resulted in his death.

U.S. District Judge Rolando Olvera accepted the plea and will impose sentencing May 31. At that time, Ceballos-Acuna faces up to life in prison and a possible $250,000 fine.

Ceballos-Acuna has been and will remain in custody pending that hearing.

Homeland Security Investigations conducted the investigation with the assistance of Border Patrol, Brownsville Police Department and Cameron County District Attorney’s Office. Assistant U.S. Attorneys Edgardo J. Rodriguez and Megan Eyes prosecuted the case.

LAREDO, Texas – A 26-year-old Laredo resident has pleaded guilty to sexual exploitation of a child and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.

The investigation began when authorities learned an IP address associated with Aaron Negrete had uploaded child pornography online.  

On Oct. 12, 2022, law enforcement executed a search warrant at his home. At that time, they found and seized several electronic devices which contained child pornography and took Negrete into custody.  

He ultimately admitted to downloading an application he used to search for child pornography such as baby and toddler abuse. He also sexually abused a minor relative. He recorded himself doing so and shared the recordings and photographs online.

The investigation revealed the minor visited Negrete and stayed at his residence in Laredo. The victim claimed that on more than 50 instances Negrete forced him to rub his genitals and took naked pictures of him, among other things. The minor was told to keep it a secret to prevent “something bad” from happening.

U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, Negrete faces a mandatory minimum of 15 and up to 30 years in federal prison.

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

Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department.

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

CORPUS CHRISTI, Texas – A 46-year-old Corpus Christi resident has been sent to prison following his convictions of conducting an illegal gambling business and conspiring to steal government property, announced U.S. Attorney Alamdar S. Hamdani.

Nathan Nichols pleaded guilty March 21, 2022.

Today, U.S. District Judge Nelva Gonzales Ramos ordered Nichols to serve 27 months in federal prison to be immediately followed by two years of supervised release. In handing down the sentence, the court noted the dangers and potential damage that could be caused to the United States military. In addition, Nichols was order to pay over $1 million in restitution.

Nichols admitted that from March 2018 to August 2019, he operated illegal gambling businesses in Corpus Christi. He also pleaded guilty to conspiring to steal sensitive government property from the U.S. Army installation at Ft. Hood in June 2021.

Nichols was the co-owner of Theo's Bar and owner/operator of Lady Luck, both facilities containing illegal gaming devices. The establishments contained sweepstakes games which people play by using computers and monitors rather than casino-style equipment. The games are software-based and function as traditional slot-machine games or “8-liners.” However, the action of the slot-machine reels are simulated on a computer screen rather than on mechanical reels. Those playing the machines place bets before each spin and receive winnings in cash. 

In a separate case, Nichols also admitted he conspired with others to steal sensitive U.S. Army property valued at $2,176,000. He had been in contact with one of the persons responsible for the theft and requested pictures of the property before agreeing to buy it for resale. Once he obtained the items, Nichols subsequently listed them for sale on eBay.

Authorities executed a search warrant at Nichols’ residence in July 2021. At that time, they discovered sensitive military equipment including laser range finders, thermal scopes, night vision scopes, night vision goggles and laser aiming devices. All of the property belonged to the U.S. Army. 

As part of his guilty pleas, Nichols agreed to forfeit a total of  $2,185,218.73 as proceeds from his illegal activity.

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

The FBI conducted the investigation with the assistance of the Corpus Christi Police Department on the gambling case. Homeland Security Investigations conducted the stolen property investigation with the assistance of the U.S. Army Criminal Investigation Division.

Assistant U.S. Attorneys (AUSA) Joel Dunn and Christopher Marin prosecuted the cases with the assistance of Asset Forfeiture AUSA Yifei Zheng. 

HOUSTON – A 56-year-old business owner has admitted to conspiring to commit mail fraud, announced U.S. Attorney Alamdar S. Hamdani.

Sudhakar Kalaga admitted that from 2010 to 2019, he engaged in a bribery and bid rigging fraud scheme to secure construction and maintenance work contracts from a company with a manufacturing facility in Houston.

Kalaga admitted he submitted fake bids from non-existent construction companies to the victim company’s facilities manager. This was designed to make it appear his companies’ bids were the lowest. In return, Kalaga paid the facilities manager millions of dollars in kickbacks. Kalaga failed to disclose he was submitting falsified bids and paying kickbacks from the victim company’s own funds.

The victim company would not have paid Kalaga’s companies’ invoices had it known about the falsified bids or the kickback payments.        

Sentencing has been set for June 20 before U.S. District Judge Lee Rosenthal. At that time, Kalaga faces up to five years in federal prison and a possible $250,000 maximum fine.

The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.

McALLEN, Texas - Two Mexican men and a U.S. citizen have admitted to their roles in an alien smuggling conspiracy which resulted in death, announced U.S. Attorney Alamdar S. Hamdani.

Francisco Javier Quintanilla-Alcocer, a 38-year old Mexican citizen, pleaded guilty today. Brandon Cibriano-Gonzalez, a 21-year-old Mexican citizen, and Orlando Andres Garcia, 23, Mission, had previously admitted their guilt in relation to the scheme.  

On Oct. 22, 2021, Cibriano-Gonzalez acted as a brush guide to smuggle a group of 10 non-U.S. citizens from Mexico into the United States. He guided them to a pick-up location in Palmview. There, Quintanilla-Alcocer and Garcia arrived and were driving a Chevrolet Impala and Chevrolet Malibu, respectively. The aliens and Cibriano-Gonzalez loaded into the vehicles and left the scene. Shortly thereafter, law enforcement attempted to conduct a traffic stop, but both vehicles failed to yield and a high-speed chase ensued.

Garcia turned his vehicle in an attempt to divert law enforcement, while Quintanilla-Alcocer continued to accelerate. Quintanilla-Alcocer eventually turned onto a dirt road in Mission where the Chevrolet Impala rolled and crashed into a homeowner’s fence. Authorities located a total of seven individuals on scene. Three had been ejected, two of whom died at the scene.

Quintanilla-Alcocer was not located at that time. However, evidence in the vehicle led law enforcement to him. Phone records also indicated that Quintanilla-Alcocer and Garcia had been consistently communicating throughout the high-speed pursuit. During these conversations, Garcia instructed Quintanilla to go faster.  

Chief U.S. District Judge Randy Crane accepted the pleas and set Quintanilla-Alcocer’s sentencing for May 25, while Cibriano-Gonzalez and Garcia are set for April 18. At those times, all three men face up to life in federal prison. They each have been and will remain in custody pending their hearings.

Homeland Security Investigations conducted the investigation with assistance from the Palmview Police Department and Texas Department of Public Safety. Assistant U.S. Attorneys Lee Fry and Devin Walker are prosecuting the case.

McALLEN, Texas – A 31-year-old San Juan resident is set to appear in federal court on charges of firearms and drug trafficking, announced U.S. Attorney Alamdar S. Hamdani.

Jessica Alvarado is expected to appear on the charges in the indictment at 1:30 p.m. today before U.S. Magistrate Judge Nadia S. Medrano. 

Originally charged by criminal complaint, a federal grand jury returned the two-count indictment Feb. 21 against Alvarado on charges of smuggling goods from the United States as well as possessing approximately 499 grams of cocaine with the intent to distribute.

On Jan. 31, Alvarado attempted to depart the United States via the Hidalgo Port of Entry driving a Ford F-150, according to the complaint. She allegedly denied having firearms. However, the charges allege authorities noticed the bed of the pickup truck was abnormally elevated and referred her to secondary inspection. A search of the truck allegedly resulted in the discovery of 33 AK-47 variant rifles, three AR-15 rifles, a .22 caliber Long rifle, two .45 caliber handguns and 39 ammunition magazines.

According to the complaint, Alvarado does not possess a license to export firearms from the United States.

The investigation led to a search at her residence in San Juan, according to the charges. There, law enforcement also allegedly found approximately 499 grams of a packaged white powdery substance that field tested positive for the characteristics of cocaine and more than $13,000 in bulk U.S. currency.

If convicted, Alvarado faces up to 20 years in prison for trafficking cocaine charge as well as a maximum of 10 years for illegal exportation of firearms.

Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Peter I. Brostowin is prosecuting the case.

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

HOUSTON – A 61-year-old doctor and companies he owned and operated have agreed to pay the United States $3 million to resolve claims they improperly billed Medicare, announced U.S. Attorney Alamdar S. Hamdani.

Dr. Ashok Jain and companies known as Psychiatric Solutions P.C., Longview Psychiatric Center PLLC and Longview Psychiatric Center LP knowingly and willfully submitted, or caused the submission of, false claims to Medicare. The allegations included intentionally pressuring patients to accept unnecessary medical treatments and billing for those treatments, falsifying treatment records and billing Medicare for worthless services and services they did not provide.  

“This office will actively pursue and prosecute those who take advantage of our aged population and those who seek psychiatric care and counseling,” said Hamdani. “It is particularly egregious when those citizens who seek care are given unnecessary treatment and not the treatment that would benefit them. Providers who participate in federally funded programs like Medicare have a responsibility to the public to provide legitimate, safe care and treatment.”

The investigation began when two individuals who worked at the Psychiatric Solutions Longview clinic filed a qui tam, aka whistleblower, lawsuit under seal July 15, 2021.

During their terms of employment, they allegedly witnessed patients being pressured to accept unnecessary medical treatments as well as the falsification of treatment records and billing Medicare for worthless services or services the clinic did not provide. 

Jain and the clinics had allegedly submitted claims for payment to Medicare for Transcranial Magnetic Stimulation (TMS) procedures that were not performed, routinely administered TMS treatments unnecessarily and absent a valid medical purpose and improperly billed Medicare for reimbursement of those treatments. They also billed Medicare for physician assessments when the physician did not see the patient or supervise the TMS session. 

The complaint indicated the fraudulent conduct continued until the business was sold in April 2022.

“At the least, health care practitioners are expected to furnish services that are appropriate for their patients and to bill accurately. Providers believed to violate those basic requirements are principal targets of our investigative efforts,” stated Acting Special Agent in Charge Korby Harshaw with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Coordinating with our law enforcement partners, HHS-OIG proudly carries out our mission to protect federal health care patients and programs from exploitation.”

“Billions upon billions of taxpayer dollars are stolen by healthcare fraudsters each year,” said FBI Houston Special Agent in Charge James Smith. “FBI Houston’s dedicated team of healthcare investigators, analysts and forensic accountants work alongside our valued law enforcement partners every day to identify these criminals, hold them accountable and protect our nation from pervasive fraud schemes which enrich criminals at the expense of hardworking, honest Americans.”

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 relators will receive a total of $300,000.

DHHS-OIG and FBI conducted the investigation. Assistant U.S. Attorney Jill Venezia handled the matter.

HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas (USAO-SDTX) has implemented a new national policy which details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a USAO, announced U.S. Attorney Alamdar S. Hamdani.

The policy, which is effective immediately, aims to provide transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.

The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide. It also hopes to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct and to cooperate fully with the government in corporate criminal investigations.

The SDTX also implemented a selection policy for independent corporate monitors, who can be an effective resource in assessing a company’s compliance with the terms of a corporate criminal resolution and reducing the risk of repeat misconduct and compliance lapses.

The policy lays out a detailed, mandatory selection process that culminates in U.S. Attorney approval for the appointment of any monitor. In general, the SDTX will favor the imposition of a monitor where there is a demonstrated need for, and clear benefit to be derived from, a monitorship, such as when a company’s compliance program and controls are untested, ineffective, inadequately resourced or not fully implemented at the time of a resolution. This is particularly true if the investigation reveals a compliance program is deficient or inadequate in numerous or significant respects. Conversely, where a company’s compliance program and controls are demonstrated to be tested, effective, adequately resourced and fully implemented at the time of a resolution, a monitor may not be necessary. The scope of any monitorship will be appropriately tailored to address the specific concerns of each individual company.

Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ. A company must also disclose all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation.

A company who voluntarily self-discloses, as defined in the policy, and fully meets the other requirements of the policy by fully cooperating, timely and appropriately remediating the criminal conduct and paying appropriate penalties will receive significant benefits. These include that the USAO may choose not seek a guilty plea, not to impose any criminal penalty and/or not to impose a criminal penalty that is greater than 50% below the low end of the U.S. Sentencing Guidelines (USSG) fine range and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.

The policy identifies three aggravating factors which may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met. These include if the misconduct poses a grave threat to national security, public health or the environment; if the misconduct is deeply pervasive throughout the company; or if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required. Instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy. The USAO will recommend a criminal penalty of at least a 50%, and up to a 75%, reduction off the low end of the USSG fine range and will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.

In cases where a USAO and another DOJ are jointly prosecuting a company or where the misconduct the company reports falls within the scope of conduct the VSD covers, the USAO will coordinate with or, if necessary, obtain approval from the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution.

These policies were prepared by the Corporate Criminal Enforcement Policy Working Group, a group of United States Attorneys from geographically diverse districts throughout the USAO community, at the request of the Attorney General’s Advisory Committee and its White Collar Fraud Subcommittee.  

McALLEN, Texas – A 20-year-old Pharr resident has been ordered to federal prison for organizing several individuals and having them purchase several firearms which were bound for Mexico, announced U.S. Attorney Alamdar S. Hamdani.

Christopher Tijerina pleaded guilty July 12, 2022.

Today, U.S. District Judge Micaela Alvarez ordered Tijerina to serve 78 months in federal prison to be immediately followed by a three-year-term of supervised release. At the hearing, the judge noted Tijerina was a leader/organizer in the conspiracy and cited the serious nature of the conduct, the number of firearms involved and the danger they pose to the community at large. The court further stated that being a good citizen requires being good to the whole community.

“We are facing an epidemic of gun violence across our nation,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The recent surge in gun violence is driven, in part, by individuals who are illegally trafficking firearms to countries like Mexico. When you illegally buy a gun for someone else, you are committing a federal crime and ATF will continue working with our law enforcement partners to stop firearms traffickers and straw purchasers who are contributing to gun violence in our community.”

In January 2022, Tijerina coordinated an effort to obtain firearms that would then be exported to Mexico. From Jan. 31 to Feb. 9, 2022, co-conspirators successfully purchased 13 firearms. Six were 7.62mm AK-47 variant rifles, while there were five 7.62mm AK variant pistols, one .40 caliber pistol and one 9mm pistol. They also attempted to purchase three additional 7.62mm AK-47 variant rifles, but were unsuccessful.

The purchases were made from local federal firearms licensees (FFLs) located in Hidalgo County.

Tijerina, admitted he recruited individuals for the purpose of purchasing firearms for him. Those individuals were eventually charged and convicted of straw purchasing firearms as they each represented on a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form they were in fact the true buyer of the firearm when they were not.

Thus far, those co-conspirators range in age from 19 to 23 and have received sentences of up to 70 months in federal prison.

Eduardo Guajardo, 26, a U.S. citizen believed to be residing in General Bravo, Nuevo Leon, Mexico, and Jesus Alexis Martine, 20, Edinburg, are both considered fugitives in the case and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asked to contact U.S. Marshals Service Enforcement Office at 956-558-6238.

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

The ATF conducted the investigation. Assistant U.S. Attorneys Peter I. Brostowin and Sarina DiPiazza prosecuted the case.

McALLEN, Texas – Two Edinburg residents have pleaded guilty to benefitting from forced labor, announced U.S. Attorney Alamdar S. Hamdani.

From June 24, 2021 until July 8, 2021, Eduardo Javier Gomez, 32, and his former partner Margarita Alvarez, 40, benefitted from a victim’s free labor which allowed the couple to have gainful employment. In addition, Gomez additionally earned money from a fireworks stand where the victim provided free labor.

“Labor traffickers care about only one thing - money,” said Hamdani. “Those subjected to domestic servitude are robbed of their dignity and freedom. Thankfully, this victim was rescued quickly thanks to the efforts of law enforcement. Now, this couple will pay the price for their despicable crimes and we can begin to bring some closure to the victim.”

Law enforcement discovered that the victim had been illegally smuggled to the Rio Grande Valley. Gomez was holding her against her will. Gomez was requesting further payment from family members in exchange for the victim being moved further north. When the family was unable to pay, the victim’s phone was taken and she was forced to work as a nanny and housekeeper in the home Gomez and Alvarez shared. The victim also was forced to work in a fireworks stand Gomez managed.

The victim was never paid.

Two days after learning of the victim, authorities were able to locate and rescue her.

U.S. District Judge Ricardo H. Hinojosa accepted the pleas and has set sentencing for May 9. At that time, the former couple faces up to 20 years in federal prison.

Eduardo Javier Gomez has been and will remain in custody pending sentencing, while Margarita Alvarez was permitted to remain on bond.

Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Eliza Carmen Rodriguez, Sherri Zack and Kim Leo are prosecuting the case.

HOUSTON – The final of four charged in connection with the theft of $200,000 from a bank in Houston and allegedly transferred to New York has turned herself in to authorities, announced U.S. Attorney Alamdar S. Hamdani.

Janem Gibbs, 50, Missouri City, is expected to make her initial appearance before U.S. Magistrate Judge Andrew M. Edison at 2 p.m. today.

Arrested Friday, Feb. 24, were Munson P. Hunter III aka Paul Hunter, 48, Rosedale, New York, Gregory Thurman, 52, Richmond, and Travis Deon Wright, 51, Missouri City.

Hunter was arrested in New York where he made his appearance, while Thurman and Wright appeared in Houston.

Hunter, Thurman, Wright and Gibbs are charged with the theft of $200,000. The charges allege Gibbs was a former assistant branch manager at Capital One N.A. in Houston. She allegedly wire transferred money from a customer’s account at Capital One without his knowledge to an account at a New York City bank.

Hunter, Thurman and Wright were also charged with wire fraud for moving the stolen money through a series of other accounts at banks in New York, Virginia and Texas. The accounts were opened using fictitious names, according to the charges.

All four are charged with bank fraud. All but Gibbs are also charged with two counts of wire fraud. If convicted, each faces up to 30 years in prison and a possible $1 million maximum fine on each count.

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

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

HOUSTON – A 38-year-old resident of Richmond has been charged for operating as a “money mule” as part of her involvement in a nationwide romance fraud scheme, announced U.S. Attorney Alamdar S. Hamdani.

Akua Dufie is expected to make her initial appearance before U.S. Magistrate Judge Andrew Edison at 2 p.m. today.

On Feb. 16, a federal grand jury returned the seven-count superseding indictment adding Dufie to an existing case against her co-conspirator, Kenneth Anim, 39, a dual citizen of Ghana and the United States who is currently in federal custody awaiting trial on these charges. 

From 2014 to 2019, Dufie and Anim allegedly created individual sham businesses. The charges allege they operated as money mules in relation to various mail and wire fraud schemes including internet fraud and romance scams.

Dufie and Anim also allegedly opened and maintained bank accounts to collect proceeds from the schemes and to send the money to themselves, co-conspirators and overseas.

If convicted, Dufie and Anim face up to 20 years in federal prison and a possible $500,000 maximum fine.

The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Belinda Beek and Grace Murphy are prosecuting the case.

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

McALLEN, Texas – A total of five people have been arrested on charges of conspiracy to possess with intent to distribute cocaine and possession with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.

Orlando Candelario Almanza, 49, Edinburg, and Fidencio Salinas Jr., 51, Pharr, are set to make their initial appearances before U.S. Magistrate Judge Nadia S. Medrano at 9:30 a.m. today.

Also arrested last week and who made their appearance already were Javier Enrique Mendoza, 48, Pharr, and Jose Felipe Lozano, 58, Edinburg. Enrique Bernardo Gamez, 45, Hidalgo, was previously in custody on related charges and will make his appearance in the near future.

The multi-count indictment was returned Feb. 21 and unsealed upon the arrests last week.

On multiple occasions between March 24 through Oct. 3, 2022, the indictment alleges the five individuals conspired to transport cocaine through UPS packages.

Salinas and Almanza are both allegedly UPS employees who knowingly transported the packages of cocaine. The charges allege Mendoza provided the packages of cocaine to UPS employees, while Lozano allegedly provided fraudulent labels for the packages. Gamez stored the cocaine at his residence prior to transport, according to the charges.

Law enforcement seized approximately 60 kilograms of cocaine these individuals allegedly trafficked.

If convicted, they all face up to life in prison and a possible $10 million fine.

The Drug Enforcement Administration, Hidalgo County High Intensity Drug Trafficking Area Task Force and FBI conducted the investigation. Assistant U.S. Attorney Laura Garcia is prosecuting the case.

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

HOUSTON – A 30-year-old man who resided in Houston has pleaded guilty to several sex trafficking crimes and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Edgar Botello admitted to sex trafficking with force, fraud or coercion and conspiracy to do so as well as possession of child pornography.

“Sex traffickers prey on the vulnerable, including those in the United States without documentation,” said Hamdani. “These victims are often fearful of law enforcement and reluctant to come forward. I praise the bravery of the victims which led to the conviction of Botello and his mother. If you are a victim or know someone who is, please contact authorities. We work side-by-side with victims to bring people like Botello to justice.”

Botello worked with his mother - Maria Botello-Morales - to run a cantina known as Puerto Algre. There, they forced several females to engage in commercial sex in backrooms built specifically for that purpose.

As part of his plea, Botello threatened and intimidated these victims with violence to manipulate them into the sex acts for his personal financial benefit. 

The victims reported they had started at the bar as waitresses. However, Botello-Morales used Botello as her representative and enforcer and told them they had to engage in commercial sex. If they refused, she threatened them with violence. The women reported Botello always carried a gun with him and, on occasion, threatened them.

Some of the victims witnessed violence and weapons at the bar and in the back area where the sex acts occurred. Each described how they had to take customers to the backrooms. They were given a condom wrapped in a paper towel, were to spend no more than 15 minutes in the room and charge approximately $70. Upon exit, they had to turn the money over to whoever was guarding the room, which was often Botello.

Law enforcement conducted a search at Botello’s residence on April 1, 2021. At that time, they found numerous weapons in his room. They also discovered a computer which was found to contain child pornography.

U.S. District Judge Andrew S. Hanen accepted the plea and set sentencing for June 12. At that time, Botello faces up to life in prison for the sex trafficking charges as well as up to another 10 years for the possession of child pornography.   

Botello has been and will remain in custody pending that hearing. Botello-Morales, 56, pleaded guilty Jan. 3o and also remains in custody pending sentencing.

The Texas Alcoholic Beverage Commission (TABC) and Homeland Security Investigations (HSI) conducted the investigation with the assistance of the Houston Police Department (HPD) as part of the Human Trafficking Rescue Alliance (HTRA). Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.

HTRA law enforcement includes members of the HPD; FBI; HSI; Texas Attorney General’s Office; IRS-Criminal Investigation; Department of Labor (DOL); DOL – Wage and Hour Division; Department of State; Federal Air Marshals; TABC; Texas Department of Public Safety; Texas Rangers; Texas Parks and Wildlife; Social Security Administration – OIG; Texas Department of Licensing and Regulation; Texas Department of Family and Protective Services as well as police departments in Houston Independent School District (ISD), Conroe ISD and Missouri City; Harris County constables offices – Precincts one and four; sheriff’s offices in Harris, Montgomery, Fort Bend, Brazoria and Waller counties in coordination with District Attorney’s offices in Harris, Montgomery, Fort Bend and Galveston Counties. They work in coordination with victim service providers such as YMCA, United Against Human Trafficking and Texas Forensic Nurse Examiners.

Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.

HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas (SDTX) has completed the investigation into the Houston Livestock Show and Rodeo (HLSR) and NRG Park, announced U.S. Attorney Alamdar S. Hamdani. 

The investigation announced in 2022 was conducted under the Americans with Disabilities Act of 1990 (ADA) and expanded to include NRG Stadium, NRG Center, NRG Arena and NRG Park Outdoor areas. It evaluated the accessibility for disabled individuals attending the Rodeo and using the NRG complex.

“HLSR did the right thing and made its facilities accessible to the entire community, including those with disabilities” said Hamdani. “With the cooperation of the HLSR and NRG Park, and after my office’s investigation, all individuals in the district will have a chance to enjoy the Rodeo.”

Title III of the ADA prohibits private places of public accommodation from discriminating against individuals with disabilities. The matter stemmed from complaints that the HLSR violated the ADA. Among the allegations were lack of accessible parking, accessible seating, accessible facilities and accessible routes.

SDTX’s investigation found significant barriers to accessibility.

However, the HLSR and NRG Park cooperated fully with the investigation. After the barriers were brought to their attention, officials worked diligently and expeditiously to correct all major violations before the start of the 2023 Rodeo.

Several areas are now ADA compliant - parking, many bathrooms and toilet areas, temporary ramps and handrails and several permanent countertops within NRG Park.

The number of accessible porta-potties, accessible dining areas and accessible seating has increased, accessible paths and surfaces were revamped and obstructions were either modified or removed. They also added a new stair lift in NRG Arena and attendants to assist with self-service kiosks in NRG Stadium.

NRG Stadium also revised their elevator policy during the Rodeo to improve accessibility for individuals with disabilities.

Additionally, NRG Park has revised its parking policies to provide improved access to NRG Park events including increased available accessible parking spaces and accessible drop-off points as well as modified placard requirements and improved traffic flow for those areas. They also added the Orange Lot Shuttle along Circle Drive. 

The SDTX is committed to vigorously enforcing the ADA and welcomes public comments or complaints. To file a comment or complaint, or to learn more about the ADA, individuals can contact the U.S. Attorney's Office for the Southern District of Texas at (713) 567-9140 or via email.

Assistant U.S. Attorney (AUSA) Elizabeth Karpati and former Executive AUSA Keith Wyatt handled the matter.  

CORPUS CHRISTI, Texas – A 40-year-old San Antonio resident has been ordered to federal prison for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.

Bryan Tanner pleaded guilty Dec. 1, 2022.

Today, U.S. District Judge David S. Morales ordered Tanner to serve 37 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard evidence that while committing the offense, he possessed a loaded firearm that was readily available to him in the car. In imposing the sentence, Judge Morales noted the dangerousness of the offense and also considered Tanner’s criminal history which includes prior convictions for possession and distribution of a controlled substance.

On Sept. 8, 2022, Tanner approached the Border Patrol checkpoint near Sarita. He appeared nervous and could not answer law enforcement’s questions.

They asked to check the vehicle, at which time Tanner attempted to flee the checkpoint. Authorities stopped him and discovered three individuals concealed inside the trunk. Two of the individuals indicated they had been there for at least three hours.

The temperature inside the area was over 99 degrees.

Law enforcement also discovered a loaded 9mm handgun stashed between the driver’s seat and center console of the car.

Tanner has been and 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 Ashley Martin prosecuted the case.

HOUSTON – Cornerstone Healthcare Group Holding Inc. and CHG Hospital Medical Center LLC. dba Cornerstone Hospital Medical Center have agreed to pay the United States $21,637,512 to resolve claims that the company improperly billed Medicare, announced U.S. Attorney Alamdar S. Hamdani.

Some of the alleged claims were submitted for unauthorized services, services not provided and services which were deemed so inadequate they were considered worthless.

“Taking advantage of the elderly and infirm is disgraceful,” said Hamdani. “When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the necessary and best care possible to the patient. As one of the largest of its kind in our district, this settlement shows our commitment to protecting our most vulnerable citizens and the integrity of the Medicare system.”

Cornerstone Medical Center was formerly a long-term acute care facility located in Houston that operated as a long-term care hospital. Cornerstone was in the business of providing extended medical and rehabilitative care to individuals who qualified as clinically complex and possessed multiple acute and/or chronic conditions. Through its subsidiaries, CHG Holding operated specialty hospitals throughout the United States, including Cornerstone Medical Center which is no longer in business.

The investigation began when a qui tam aka whistleblower lawsuit was filed under seal Sept. 28, 2018. The individual filing the suit worked at Cornerstone Medical Center long term care facility. During the relator’s employment, they witnessed, among other things, unlicensed, unauthorized students of Drs. Jorge Guerrero, Joel Joselevitz and Joseph Varon rendering medical procedures. These unauthorized and improper services were fraudulently billed to Medicare.

In addition, Cornerstone Medical Center submitted claims for payment for services certain treating physicians allegedly rendered. However, records showed those physicians were actually out of the country and could not have performed the services.

Finally, the investigation concluded that from Jan. 1, 2012, through Dec. 31, 2018, Cornerstone Medical Center billed for services not supported by the patients’ diagnosis or medical records, and billed for services that were either not rendered or were so inadequate they were worthless (in some cases, resulting in harm to patients.) The claims for payment to Medicare for those services were deemed to be fraudulent and submitted in violation of federal law.

“Submitting improper claims to Medicare compromises the financial security of the program and wastes valuable taxpayer dollars,” said Acting Special Agent in Charge Korby R. Harshaw of Department of Health and Human Services - Office of Inspector General (DHHS-OIG). “We will continue to work alongside our law enforcement partners to protect the integrity of federal health care programs and to hold bad actors who exploit them accountable.”

“This $21.6 million settlement by Cornerstone Healthcare Group Holding is one of the largest civil healthcare fraud settlements FBI Houston has seen, and we work a lot of healthcare fraud cases. I hope this case sends a message to other healthcare providers who think they can get away with similar fraud,” said FBI Special Agent in Charge James Smith. “Not only did Cornerstone Healthcare bilk the Medicare program out of millions of dollars, it also took advantage of its patients who were unknowingly used for its scam. These patients trusted their doctors and healthcare providers and ultimately received little to no care. At the end of the day, health care fraud affects everyone. It raises our health insurance premiums and exposes patients to worthless and unnecessary medical procedures. I’m proud of the work our FBI Houston Healthcare Fraud Task Force has done.”

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 $4,327,502.

The U.S. Attorney’s Office, DHHS-OIG, FBI and Department of Defense conducted the investigation.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

HOUSTON – Several dozen felons have been charged with varying offenses related to the illegal possession of firearms and ammunition throughout Harris County, announced U.S. Attorney Alamdar S. Hamdani.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) led a 90-day surge with the assistance of the FBI, Houston Police Department (HPD), U.S. Marshals Service (USMS) and the Harris County District Attorney’s Office (HCDA). Over the course of those days, 44 people were indicted and six others charged by criminal complaint as being felons illegally in possession of firearms or ammunition. Thus far, 36 have been arrested. Warrants remain outstanding for 14 others.

The goal was to help reduce firearms-related violent crime and to assist in reducing the backlog of felon in possession cases throughout the county. The backlog had allowed previously convicted felons who are arrested with a firearm to remain in our community for several months, sometimes years, before they faced a trial. 

The surge involved over a dozen investigators, an intelligence research specialist as well as prosecutors on both the state and federal levels.

It is in concert with the effort to combat violent crime in the area.

However, this effort is not over nor limited to Harris County. Law enforcement continues to target those similar felons who potentially pose a danger to the community. Just this morning, another man - an alleged gang member in the Navasota area - was in federal court for a detention hearing. He again is a convicted felon, now federally charged with illegally possessing a firearm.

The federal firearms charges carry potential terms of imprisonment of up to 10 or 15 years depending on the offense date and maximum fines of $250,000.

The ATF conducted the investigations with the assistance of the FBI, HPD, USMS and the HCDA. A variety of Assistant U.S. Attorneys throughout the U.S. Attorney’s Office are handling the cases.

An indictment or 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 49-year-old Corpus Christi resident has been sent to prison following his convictions of illegally possessing a firearm as a felon and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Alamdar S. Hamdani.

Joe Adam Ramirez aka Lucky pleaded guilty March 2, 2022.

Today, U.S. District Judge Nelva Gonzales Ramos, ordered Ramirez to serve 160 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that Ramirez was sending threatening letters while in a detention facility. In handing down the sentence, the court noted Ramirez’s significant and lengthy criminal history.

At the time of his plea, Ramirez admitted that on Sept. 4, 2020, he was in possession of drugs and a gun. Ramirez was a known fugitive.

On that day, authorities were able to locate him at a hotel in Corpus Christi. They conducted surveillance and observed him exit the hotel, enter the passenger side of a truck and depart the location. Law enforcement performed a traffic stop, at which time Ramirez attempted to flee on foot, but he tripped and fell.  

Authorities discovered a loaded 9mm Taurus pistol, several bags of meth, Xanax and other prescription pills.

Ramirez admitted he was aware of being a convicted felon and was not allowed to own a firearm. He said he ran because he did not want to go back to prison.

Ramirez has five prior felony convictions involving burglary of a vehicle, burglary of a habitation, theft from a person, aggravated robbery and possession of controlled substance. As such, he is prohibited under federal law from possessing firearms or ammunition at any time.  

The Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Drug Enforcement Administration and the U.S. Marshals Service conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorneys John Marck and Ashley Martin prosecuted the case.

McALLEN, Texas – A 34-year-old McAllen resident has admitted to robbery of a motor vehicle with intent to cause serious harm or death, announced U.S. Attorney Alamdar S. Hamdani.

On Nov. 25, 2021, Fidel Garza Jr. was on the 1200 block of 28th street riding in the passenger seat of a truck and 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.

U.S. District Judge Micaela Alvarez will impose sentencing April 27. At that time, Garza faces up to 15 years in prison.

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

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. Attorney Anthony J. Evans is prosecuting the case.

McALLEN, Texas - A 36-year-old Mexican national has been ordered to federal prison for attempting to enter the United States with more than 50 kilograms of meth concealed within her vehicle, announced U.S. Attorney Alamdar S. Hamdani.

Miriam Nayely Lopez-Hernandez pleaded guilty to importation of a controlled substance July 28, 2021. 

Today, District Judge Micaela Alvarez sentenced her to 135 months in federal prison. Not a U.S. citizen, Lopez-Hernandez is expected to face removal proceedings following her imprisonment. In handing down the sentence, the court noted her role in the offense was not a minimal nor minor one and emphasized the dangerousness perpetuated by drug trafficking in both the United States and in Mexico.  

On March 24, 2022, Lopez-Hernandez attempted to enter the United States from Mexico via the Hidalgo Port of Entry in a motor vehicle, at which time a K-9 alerted to the vehicle. An x-ray examination ultimately resulted in the discovery of 24 packages containing 51.78 kilograms of meth concealed within the tires of the vehicle.

Further investigation revealed Lopez-Hernandez’s vehicle had crossed into the United States seven days prior. Authorities had discovered no abnormalities. Messages on her phone indicated she had delivered the vehicle to others the night before her attempted arrival.

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

Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Lee Fry prosecuted the case.

HOUSTON – A 24-year-old man who resided in Houston and grew up near Crosby has been ordered to federal prison for trafficking a minor and another for sex, announced U.S. Attorney Alamdar S. Hamdani.

Aryion Dupree Jackson pleaded guilty Dec. 19, 2022, in two separate cases. He admitted to the sex trafficking of a minor and conspiracy to traffic an adult female by force, fraud or coercion.

Today, U.S. District Judge Lee Rosenthal sentenced Jackson to a total of 324 months of imprisonment. Jackson was further ordered to serve 15 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Jackson will also be ordered to register as a sex offender. In imposing the sentence, the court acknowledged Jackson had a horrible childhood but said nothing in that would support the idea that a career raping children and causing them to be raped by others would be justified. She noted the spirits of these children have been destroyed and Jackson exploited them for his own benefit.

“Young women and girls are not commodities to be sold for the financial benefit of gang members,” said Hamdani. “We must remain vigilant to combat this problem together. To the victims - please know we have your backs. To the traffickers - you might want to watch your back. To all the others - please look for the signs and call the authorities.”

Between August 2019 and July 2020, Jackson caused females, both minors and adults, to engage in commercial sex. Both the minor and adult victims were threatened with violence.  The minor was also tattooed with a five point crown and a bag of money - Jackson’s brand.

For three months, the minor was forced to engage in commercial sex for Jackson’s financial benefit. Law enforcement rescued the adult victim after being trafficked for a month and a half. During that time, she was forced to walk the track and earn at least $1000 a day for Jackson who had instructed her to charge from $100 to $300 dollars per sex act. 

Jackson is a documented gang member who’s image appeared on a wanted billboard for aggravated sexual assault. He also had numerous Instagram accounts. In one, he discussed being a pimp and posted images of himself with money and guns.

While in custody, Jackson continued to control several victims through phone calls. He was also caught with cell phones and drugs.

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

Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Leo prosecuted the case.

The Human Trafficking Rescue Alliance (HTRA) conducted the investigation.

HTRA law enforcement includes members of the Houston Police Department, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety,  Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.

Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.

LAREDO, Texas – A 43 year-old Mexican citizen has been ordered to federal prison for conspiracy to import 13 kilograms of fentanyl, announced U.S. Attorney Alamdar S. Hamdani.

Angel Amed Gomez-Garcia pleaded guilty Nov. 9, 2022.  

Today, U.S. District Judge Micaela Alvarez ordered him to serve a total of 108 months in federal prison. Not a U.S. citizen, Gomez-Garcia is expected to face removal proceedings following the sentence.

On Aug. 23, 2022, Gomez-Garcia attempted to enter into the United States after driving from Mexico across the Lincoln Juarez International Bridge at Laredo. He claimed he was simply going to shop.

However, upon inspection, authorities found 12 bundles hidden in the rear seat which contained a total of approximately 13 kilograms of fentanyl. The word “tomate,” (tomato in English) was stamped on each bundle.

Gomez-Garcia admitted he had been working for a drug trafficking organization in Mexico sometime on or after December 2021 to bring drugs into the United States. He would also take large amounts of cash from drug proceeds to Mexico.

Upon his arrest, he further acknowledged he was on his way to Chicago, Illinois, to pick up $3 million for the drug trafficking organization.

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

Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney (AUSA) Homero Ramirez and former AUSA Samara Sweet prosecuted the case.

LAREDO, Texas – A 24-year-old Laredo resident has been sent to prison for conspiracy to transport undocumented aliens resulting in death, announced U.S. Attorney Alamdar S. Hamdani.

Abraham J. Ahumada pleaded guilty May 4, 2022.

Today, U.S. District Judge Micaela Alvarez ordered Ahumada to serve 262 months in federal prison to be immediately followed by five years of supervised release. He was also ordered to pay $4,077 in restitution. At the hearing, the court heard evidence that Ahumada showed no remorse and laughed about his crime. The defense argued he grew up with ADHD and a learning disability, struggled in school and fell into crime. Judge Alvarez commented that was no excuse because such conditions, while difficult, are common among law-abiding people too.

At the time of his plea, Ahumada admitted to causing a car accident and leaving multiple victims behind.

“Three people are dead because of this human smuggler’s reckless behavior,” said Hamdani. “Traveling over 100mph on a highly trafficked rural highway, his actions caused one victim to be ejected from the vehicle and another to be killed on impact - his body trapped inside the burning car. This man took three lives, ruined his own and will pay the price in federal prison for decades.”

On Nov. 13, 2021, Ahumada drove a black Nissan Murano down U.S. Highway 83. Law enforcement attempted to pull him over, but he proceeded to flee. He did not yield and instead accelerated above the speed limit.

Ahumada disregarded a red light during the pursuit along U.S. 83 and collided with a passenger vehicle crossing the intersection with the right of way. The collision resulted in three deaths.

Two individuals in Ahumada’s vehicle were pronounced dead on the scene as well as a woman who was traveling in the struck vehicle with children. The three children suffered bodily injuries and were taken to a local hospital for treatment.

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

Homeland Security Investigations conducted the investigation with Customs and Border Protection and the Texas Department of Public Safety. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.

LAREDO, Texas – A 22-year-old Laredo man has been ordered to federal prison for receipt and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Ricardo Reyna pleaded guilty July 7, 2022.

Today, U.S. District Judge Micaela Alvarez sentenced Reyna to 210 months and 210 months for the possession of child pornography and receipt of child pornography convictions, respectively. They will run concurrently. The court also heard additional information today including letters from identified victims detailing the trauma and revictimization they have experienced as a result of the Reyna’s crimes.

In handing down the prison term, the court noted that eventually Reyna would be released from prison and the self-described hell he is going through while incarcerated, but the victims of his crimes can never escape their trauma. They will have to continue enduring their abuse for the rest of their lives.

Reyna was further ordered to pay a total of $16,000 in restitution and will serve 15 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Reyna will also be ordered to register as a sex offender.

At the time of his plea, he admitted to viewing and sharing child pornography between May 1, 2020, and May 6, 2022. 

During the investigation, authorities found 51 video files and 16 images of child pornography on Reyna’s cellphones. Reyna admitted to viewing and sharing child pornography on Kik starting in 2020. 

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

The FBI conducted the investigation with the assistance of Homeland Security Investigations and the Winnebago County Sheriff’s Office.

Assistant U.S. Attorney (AUSA) Mark Hicks handled the sentencing. Former AUSA April Ayers-Perez 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.

LAREDO, Texas – A 25-year-old U.S. citizen residing in Mexico has been ordered to prison for trafficking handguns into Mexico under the Stop Illegal Trafficking in Firearms Act, announced U.S. Attorney Alamdar S. Hamdani.

Said Isaac Hernandez admitted to one count of trafficking firearms Sept. 29, 2022, and is the first person believed to be convicted under the new law.

The Stop Illegal Trafficking in Firearms Act is part of the broader Safer Communities Act, passed June 25, 2022.

Today, U.S. District Judge Micaela Alvarez imposed an 80-month term of imprisonment for Hernandez. In handing down the prison term, Judge Alvarez noted that although Hernandez had no criminal history, the number  firearms  he was trafficking to Mexico was disturbing, and the guns were likely ending up in the wrong hands.  

“Hundreds of firearms likely ended up in the hands of Mexican cartel members thanks to Hernandez’s firearms trafficking, only worsening the ongoing gun violence terrorizing the citizens of Mexico and the United States,” said Hamdani. “He worked with a contact in Mexico who instructed him on the type and number of firearms to purchase. Hernandez’s actions exemplify why laws such as the Trafficking in Firearms Act are so important.”

“This was a textbook case of trafficking firearms to Mexico,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Firearms trafficking is illegal and immoral. Unfortunately, the consequences of a firearm illegally possessed in the United States and Mexico can cause danger and harm for decades. As demonstrated by this case, we will continue to investigate and prosecute gun traffickers who endanger the lives of law-abiding citizens in our communities.”

On July 11, 2022, authorities apprehended Hernandez while he was traveling south on U.S. Interstate 35 towards the port of entry in Laredo. At the time of his arrest, they discovered 17 firearms hidden in his car.

Hernandez had been the subject of an investigation related to the purchasing of a large number of firearms and transporting them to Mexico. Between Jan. 21, 2020, and July 11, 2022, Hernandez purchased a total of 231 handguns in calibers of 9mm, .380 and .22. 

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

The ATF conducted the investigation. Assistant U.S. Attorney Michael Makens is prosecuting the case.

LAREDO, Texas – Two Laredo residents have received significant sentences for their roles in a conspiracy to possess with the intent to distribute 19 kilograms of meth from Mexico, announced U.S. Attorney Alamdar S. Hamdani.

Antonio Ruiz, 37, and Timothy Andrew Hernandez, 24, pleaded guilty to conspiracy to import a controlled substance Nov. 9 and 1, 2022, respectively.

Today, U.S. District Judge Micaela Alvarez ordered Ruiz to serve 30 years in prison, while Hernandez received a 130-month-term of imprisonment. In handing down the sentences, the court noted Ruiz’s long history of crime since turning 18 years of age. She further noted that as an older relative of Hernandez, Ruiz should have pushed him away from crime, instead of bringing him into it. After she imposed the sentence, Ruiz remarked that he was not the kind of man who uses or traffics in drugs and that the sentence was too long. The judge replied that sometimes it’s enough if you do it just once.

On May 7, 2022, an undercover agent whom Ruiz believed he had hired drove a meth-laden truck to a location Ruiz had designated. Ruiz had hired Hernandez to pick it up from him. Ruiz remained in the area to oversee the operation – guiding Hernandez to the location of the vehicle and informing the driver of his progress.

Upon arrival, the driver showed Hernandez the hidden compartment within the truck where the meth was stored. Hernandez was then supposed to drive the vehicle to another location in Laredo where the drugs would then be transferred to different vehicle. Another driver would then transport the drugs into the interior of the United States.

The meth was found to be 99% pure.

Hernandez and Ruiz were was taken into custody after arrest warrants were issued for them on July 7 and Sept. 9, 2022, respectively.

Both men 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 Customs and Border Protection, Texas Department of Public Safety and the United Independent School District Police Department. Assistant U.S. Attorney Homero Ramirez prosecuted the case.

HOUSTON – A 61-year-old man has been sent to federal prison following his conviction of money laundering as well as conspiracy to commit and committing wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

A federal jury deliberated for approximately half a day following an eight-day trial before returning a guilty verdict Sept. 20, 2022, on all counts against Clarence Roland III.

Today, U.S. District Judge Lee H. Rosenthal ordered Roland to serve 120 months in federal prison to be immediately followed by three years of supervised release. Roland was ordered to pay restitution in the amount of $3,251,897.41. A money judgment in the amount of $1,984,642.09 was also entered. In handing down the sentence, the court noted Roland knew what he was doing was illegal and he pocketed the proceeds.

In 2009, Roland began working with co-conspirator Arlando Jacobs, 57, Oakland, California, in a deed fraud scheme to cancel and challenge mortgage loans held in the name of Jacobs or others. During this time, Roland frequently used the alias Joshua Stein, while Jacobs used Caleb Wright or Dexter Ponzey.

According to testimony, they solicited and received the help of other co-conspirators to establish over 11 business entities or shell companies and office spaces with mailing addresses in Houston, The Woodlands and Katy to carry out the scheme.

The jury heard that Roland and co-conspirators fraudulently acquired real property by manipulating and filing fraudulent deeds and other documents. Roland sold the properties and received profits from the sales. The original mortgage liens were not paid off and the mortgage holders were ultimately defrauded. Some title insurance companies were forced to pay buyer claims who had acquired the title when purchasing the real property Roland sold to them.

The co-conspirators fabricated a series of documents to falsely create the appearance of transferred ownership of real property to the shell companies. In order to do so, they signed documents claiming to represent one of the many entities in the transactions. The same names were used as signors on many documents and purported to represent different entities. They were also fraudulently notarized by using fake notary stamps.

The defense attempted to convince the jury the law allowed him to file fraudulent documents in the real property records to transfer title of houses on which there were mortgages so he could then sell them free of those mortgages. They did not believe those claims and found Roland guilty as charged.

Jacobs pleaded guilty in advance of trial in an unrelated fraud case in the Eastern District of Texas and was sentenced to 51 months in prison and ordered to pay restitution of $7.6 million.

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

The FBI, Federal Housing Finance Agency - Office of Inspector General (OIG) and Housing and Urban Development - OIG conducted the investigation. Assistant U.S. Attorneys John Braddock and John Wakefield prosecuted the case.

HOUSTON – A 26-year-old Houston resident has been ordered to federal prison for production and distribution of child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Xavier Jay Reyes pleaded guilty Aug. 15, 2022, to two counts of sexual exploitation of a child and one count of distribution of child pornography.

Today, U.S. District Judge David Hittner sentenced Reyes to a total of 960 months in federal prison for all counts of conviction. He must also serve 10 years of supervised release, during which time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. 

In imposing the sentence, Judge Hittner also considered numerous impact statements from the exploited child victims Reyes used to create the child pornography he possessed in his collection.

Restitution will decided at a later date.

“Abhorrent and serial sexual abuse of minors will not be tolerated in the Southern District of Texas. Today’s sentencing makes that clear,” said Hamdani. “The damage has been done, but we hope this sentence gives some peace to the victims and helps in the long process of rebuilding their lives.”

In 2020, during an undercover online child pornography investigation, law enforcement discovered Reyes was producing and sharing images and videos of a minor female child engaging in sexually explicit conduct. The produced material included images and videos depicting Reyes engaging in violent, coercive and degrading abuse of the minor female victim.

A search warrant led to the discovery that Reyes abused and exploited at least two minor female victims for over a year. Reyes ultimately admitted to abusing at least one child victim.

Additionally, authorities discovered a collection of 907 images and 781 videos containing child pornography.

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

Homeland Security Investigations conducted the investigation. 

Assistant U.S. Attorneys Sherin Daniel and Luis Batarse 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 tab on that page.

LAREDO, Texas – A 53-year-old Mexican national who was residing in Houston has been convicted of trafficking approximately $650,000 in meth, announced U.S. Attorney Alamdar S. Hamdani.

A federal jury sitting in Laredo deliberated for less than two hours before convicting Ana Maria Pena Gutierrez on both counts as charged following a two-day trial.

A former member of the conspiracy testified at trial and explained how Pena had hired and paid him to drive vehicles to and from Mexico. He also described he had 60 kilograms of meth on Feb. 25, 2021, which led to his arrest at a Laredo port of entry.

The jury also heard from an expert in financial records describing how irregular Pena’s bank activities were. Law enforcement also testified and detailed Pena’s confession and the entire conspiracy.

The jury heard approximately 100 kilograms of meth could be attributed to Pena which had an estimated street value of $650,000.

Pena attempted to convince the jury she did not know the drivers were transporting drugs into the United States. They did not believe her claims and found her guilty as charged.

U.S. District Judge Diana Saldana presided over the trial and will set sentencing at a later date. At that time, Pena faces up to life in prison as well as a possible $10 million fine. As a visa holder, she could also face removal proceedings.

Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Matthew Isaac and Jose Angel Moreno prosecuted the case.

HOUSTON – A federal jury convicted a Texas man today for his role in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans the Small Business Administration (SBA) guarantees under the Coronavirus Aid, Relief and Economic Security (CARES) Act, announced U.S. Attorney Alamdar S. Hamdani.

According to court documents and evidence presented at trial, Abdul Fatani, 57, Richmond, conspired with others to submit fraudulent PPP loan applications by falsifying the number of employees and the average monthly payroll expenses of the applicant businesses. In total, the co-conspirators sought over $35 million through more than 80 fraudulent PPP loans. Fatani distributed over $500,000 in fraudulent loan proceeds to his co-conspirators and himself using bogus payroll checks and laundered a portion of the proceeds by transferring the funds from one of his bank accounts to another bank account he controlled.

“Fatani’s pilfering of the PPP fund defrauded the government of funds that were supposed to help people with real businesses, suffering real losses and facing real struggles,” said Hamdani. “This man, instead, had no business and no employees. Just a scheme to defraud. Today’s jury’s verdict shows that his fraudulent actions are not acceptable and will not be tolerated in this district.”  

Fatani was convicted of one count of conspiracy to commit wire fraud, one count of wire fraud and one count of unlawful monetary transactions (money laundering). He is scheduled to be sentenced May 8 and faces a maximum penalty of 20 years in prison for conspiracy and wire fraud and 10 years in prison for money laundering.

In addition, 15 other individuals have pleaded guilty to their involvement in the loan fraud scheme.

Hamdani made the announcement along with Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency OIG (FHFA-OIG); Special Agent in Charge Mark B. Dawson of Homeland Security Investigations (HSI) Houston Field Office; Acting Inspector General Tyler Smith of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG); and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA).

Assistant U.S. Attorney (AUSA) Rodolfo Ramirez for the Southern District of Texas prosecuted the case along with Trial Attorneys Kate McCarthy, Spencer Ryan, Della Sentilles and Louis Manzo of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson for the Southern District of Texas handled asset forfeiture.

The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

A federal jury convicted a Texas man today for his role in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents and evidence presented at trial, Abdul Fatani, 57, of Richmond, conspired with others to submit fraudulent PPP loan applications by falsifying the number of employees and the average monthly payroll expenses of the applicant businesses. In total, the co-conspirators sought over $35 million through more than 80 fraudulent PPP loans. Fatani distributed over $500,000 in fraudulent loan proceeds to his co-conspirators and himself using bogus payroll checks and laundered a portion of the proceeds by transferring the funds from one of his bank accounts to another bank account he controlled.

Fatani was convicted of one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of unlawful monetary transactions (money laundering). He is scheduled to be sentenced on May 8 and faces a maximum penalty of 20 years in prison for conspiracy and wire fraud and 10 years in prison for money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

In addition, 15 other individuals have pleaded guilty to their involvement in the loan fraud scheme.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas; Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Special Agent in Charge Mark B. Dawson of Homeland Security Investigations (HSI) Houston Field Office; Acting Inspector General Tyler Smith of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.

The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA investigated the case. Assistant U.S. Attorney Kristine Rollinson for the Southern District of Texas handled asset forfeiture.

Trial Attorneys Kate McCarthy, Spencer Ryan, Della Sentilles, and Louis Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Rodolfo Ramirez for the Southern District of Texas are prosecuting the case. 

The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

BROWNSVILLE, Texas – A total of six people have been arrested on charges of alien smuggling which resulted in the death of eight, announced U.S. Attorney Alamdar S. Hamdani.

Those charged and taken into custody over the last three days include Juan Manuel Tena, 39, Pharr; Julia Isairis Torres, 37, Israel Torres Jr., 33, Erasmo Garcia III, 21, and Alexis Rafael Adorno, all of Roma; and Jose Refugio Torres, 26, Austin.

The 11-count indictment was returned Jan. 10 and unsealed upon the arrests this week.

According to the indictment, Tena was the alleged leader of the alien smuggling ring and coordinated a network of co-conspirators throughout the Southern District of Texas. Tena and his co-conspirators allegedly conspired to transport illegal aliens from the Rio Grande Valley to destinations within the United States.

As a result of that conspiracy, a total of eight aliens were killed and two others seriously injured, according to the charges.

The indictment alleges all engaged in a conspiracy to transport illegal aliens resulting in death and committed multiple counts of transporting illegal aliens resulting in death.

Tena, Julia Torres, Israel Torres, Jose Torres and Garcia are all charged with the attempted smuggling of illegal aliens in March 2019 by motor vehicle from the Rio Grande Valley to Houston. The charges allege that during the failed attempt, a vehicle rolled over and caused the deaths of four non-U.S. citizens with serious injuries to one other.

The indictment also charges Tena along with Adorno with the attempted smuggling of illegal aliens in February 2022 by watercraft from South Padre Island to the Corpus Christi area. The watercraft allegedly capsized, four illegal aliens were killed and another seriously injured.

All face up to life in prison a possible $250,000 maximum fine for the conspiracy and up to 20 years for each count of transporting illegal aliens resulting in serious bodily injury.

The indictment also includes a notice of forfeiture identifying several properties allegedly purchased with illegal proceeds of criminal activity.

The arrests came as part of Homeland Security Investigations’ (HSI) Operation Justice for All.

HSI conducted the investigation with the assistance of Border Patrol; Coast Guard; Customs and Border Protection’s Air and Marine Operations; police departments in Port Mansfield and South Padre Island; Texas Rangers; Texas Game Wardens; sheriff’s offices in Kenedy, Duval and Willacy Counties; and the Willacy County District Attorney’s Office. Assistant U.S. Attorneys Edgardo J. Rodriguez and David A. Lindenmuth are prosecuting the case.

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

HOUSTON - A civil complaint has been filed seeking the forfeiture of $834,157.50 seized from a bank account being used to defraud a U.S. business, announced U.S. Attorney Alamdar S. Hamdani.

A business email compromise scheme (BEC) is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques. It causes employees of the victim company (or other individuals involved in legitimate business transactions with them) to transfer funds to accounts the scammers control.

The complaint was filed Jan. 24. According to allegations, in or about July 2022, authorities seized $834,157.50 held in a Houston bank account. The fraudsters allegedly controlled the account even though it appeared to be that of a legitimate company. Unidentified conspirators gained access to the victim company’s computer networks, including their email servers and accounts, through phishing attacks or the use of malware, according to the complaint. 

From there, the hackers allegedly identified employees responsible for financial obligations and their contacts with other companies. The complaint further alleges perpetrators created a spoofed email address, posed as a vendor to which the company owed money and tricked them into wiring funds to an account the fraudsters controlled. 

Authorizes then executed a warrant and seized the funds

The Secret Service conducted the investigation. Assistant U.S. Attorney Rick Blaylock is handling the matter. 

Business Email Compromise scheme can be prevented. Here are some tips:

• Independently obtain mortgage payoff statements and confirm with verified and trusted sources.

• Independently verify the authenticity of information included in correspondence and statements.

• Enable Multi-Factor Authentication (MFA) on all email accounts.

• Routinely change passwords.

• Routinely monitor email account access, check for unauthorized email rules and forwarding settings.

• Restrict wire transfers to known and previously verified accounts.

• Pay using checks when the information cannot be independently verified.

• Have a clear and detailed Incident Response Plan.

A civil complaint is merely an allegation.
The government must establish that assets are subject to forfeiture.

McALLEN, Texas – A 62-year-old woman has been convicted of smuggling aliens within the United States for the third time, announced U.S. Attorney Alamdar S. Hamdani.

A federal jury deliberated for approximately 90 minutes before convicting Alma Patricia Soto-Barrera following a three-day trial.

On Aug. 18, 2022, authorities learned of a group of undocumented aliens that had crossed the Rio Grande River near Roma. They followed their foot signs and located three individuals as they entered Soto-Barrera’s vehicle. The back seat was dirty and had mud on the floorboards. There was also dried, muddy footprints in the trunk of the vehicle.

At trial, one of the aliens explained how he crossed the river with two others and a foot guide who provided him with a cell phone. The person on the phone was operating a drone and provided instructions based on what could be seen from above. The jury also heard the group was initially told to hide in a boat and instructed exactly when to run to the vehicle that was arriving.

The jury also heard that Soto-Barrera screamed for the undocumented aliens to get out of the vehicle once law enforcement arrived.  

Soto-Barrera attempted to convince the jury she was not part of the smuggling operation and simply was in the wrong place at the wrong time. The jury ultimately did not believe her claims and found Soto-Barrera guilty as charged. 

U.S. District Judge Ricardo H. Hinojosa presided over the trial and set sentencing for April 27. At that time, Soto-Barrera faces up to 10 years in prison and a possible $250,000 fine.

Soto-Barrera has been and will remain in custody pending sentencing.

Border Patrol and members of its Bike Patrol Unit conducted the investigation. Assistant U.S. Attorneys Lee Fry and Alexa Parcell are prosecuting the case.

HOUSTON – A 56-year-old Houston resident has been found guilty on multiple counts related to a complicated tax fraud scheme, announced U.S. Attorney Alamdar S. Hamdani. 

A federal jury convicted Richard J. Plezia for conspiracy as well as two counts of making false statements and falsification of a record following a month-long trial and approximately eight hours of deliberation.

“We are a nation of laws, where lawyers swear to uphold those laws” said Hamdani. “When lawyers, like Plezia, corrupt their oath for their own gain, such actions can corrode the public’s confidence in our legal system. It is important to deter such conduct, and we are pleased with the jury’s verdict holding Plezia accountable for his crimes.”

“I can tell you that justice was served and the professionalism of our special agents from the start of the case to the testimony during the trial is a testament to the outstanding work IRS-Criminal Investigation (CI) does to bring conspiracies like this to finality,” said Special Agent-in-Charge Ramsey E. Covington of IRS-CI’s Houston Field Office. “We are here to serve our community by working with the United States Attorney’s Office to bring criminal activities, specifically those with tax and financial ties, to an end.”

The evidence detailed a complex tax fraud scheme in which Plezia funneled approximately $500,000 through his business account from attorney Jeffrey Stern. The money was given to case runner Marcus Esquivel, from whom Stern was illegally purchasing personal injury cases.   

Separately, Plezia himself was illegally buying cases from Esquivel and another case runner. On his tax returns, Stern took illegal tax deductions for his payments to various runners including Esquivel. This caused approximately $4.3 million in tax loss to the IRS. Plezia filed false returns, incorrectly claiming the pass-through payments from Stern through Plezia to Esquivel as income and taking corresponding incorrect deductions for marketing and advertising.

In 2016, Plezia lied to authorities, claiming he had not paid Esquivel for case referrals. Two years later, he again lied. He claimed the approximately three years of pass-through payments were the result of Stern financing a large toxic tort case Plezia was handling. To back up his false story about the money flow, Plezia produced falsified documents in response to a federal grand jury subpoena. These included an alleged 2010 letter from Plezia to Stern proposing the financing arrangement and invoices allegedly from Esquivel that purported to bill Plezia for services on the tort case.

Both Stern and Esquivel previously pleaded guilty and provided testimony that the payments through Plezia had nothing to do with the tort case. The jury heard corroborating evidence from multiple attorneys and medical providers who were involved in the matter.

U.S. District Judge Lee H. Rosenthal presided over the trial and set sentencing for May 31. At that time, Plezia faces up to 20 years for the falsification of records and five years on each of the other convictions.

Plezia was permitted to remain on bond pending that hearing.

Stern and Esquivel, both of Houston, are also pending sentencing.  

IRS-CI conducted the investigation. Assistant U.S. Attorneys Robert S. Johnson and Richard Bennett are prosecuting the case.

HOUSTON – As National Human Trafficking Awareness Month comes to a close, the Southern District of Texas (SDTX) has reaffirmed its commitment to working with federal, state and local partners to combat human trafficking in all its forms, announced U.S. Attorney Alamdar S. Hamdani. 

“Human trafficking is especially heinous,” said Hamdani. “Our office will continue to use every available resource to charge those who cause imaginable harm and exploit and endanger some of the most vulnerable members of our society.”

Over the past year, the SDTX has charged approximately a dozen cases as part of the Human Trafficking Rescue Alliance (HTRA) and has multiple active investigations and ongoing prosecutions on several more. Nearly 20 individuals are pending trial.

Two such matters in the SDTX involve men facing life in prison. Jonathan Smith-Byrd and Larry Odell Lewis allegedly used force, fraud and coercion to cause multiple women to engage in commercial sex. Both indictments allege the men coerced victims to engage in sex acts across state lines.

Two of Smith-Byrd’s alleged victims were minors when he trafficked them, according to the charges.

Just yesterday, a woman admitted to trafficking other women from a cantina bathroom as well as sex trafficking of a minor. She forced them into commercial sex and took their money. If they refused, she often threatened them with violence.

Another recent example includes a Houstonian who attempted to entice a South Texas minor into commercial sex which resulted in a more than 10-year federal prison sentence. At the time of his plea, Malcolm Lenard Thomas admitted to communicating via Instagram with someone he thought was a 15-year-old girl. He sent a bus ticket knowing the minor was coming to Houston to engage in commercial sex. He claimed his role would be to provide her with protection.

The undercover operation demonstrated how law enforcement is making efforts, in addition to recovering victims, by trying to stop the traffickers before they connect with actual children. 

Hamdani attended a meeting with HTRA law enforcement members this month as well. He spoke and expressed his commitment to battling the human trafficking problem in the SDTX and elsewhere and commended HTRA and SDTX efforts in doing so thus far.

“HTRA will continue to be the gold standard for human trafficking task forces,” Hamdani added. “The efforts of law enforcement as well as the non-governmental organizations and others who provide victim services are so greatly appreciated. It takes all of us working together towards the same goal that makes this task force what it is today. I am proud our office has been a part of it since its inception.” 

HTRA law enforcement includes members of the Houston Police Department; FBI, Homeland Security Investigations; Texas Attorney General’s Office; IRS-Criminal Investigation; Department of Labor (DOL); DOL – Wage and Hour Division; Department of State;  Federal Air Marshals; Texas Alcoholic and Beverage Commission; Texas Department of Public Safety; Texas Rangers; Texas Parks and Wildlife; Social Security Administration – OIG; Texas Department of Licensing and Regulation; Texas Department of Family and Protective Services as well as police departments in Houston Independent School District (ISD), Conroe ISD and Missouri City; Harris County constables offices – Precincts one and four; sheriff’s offices in Harris, Montgomery, Fort Bend, Brazoria and Waller counties in coordination with District Attorney’s offices in Harris, Montgomery, Fort Bend and Galveston Counties. They work in coordination with victim service providers such as YMCA, United Against Human Trafficking and Texas Forensic Nurse Examiners.

Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.

“As we come to the end of National Human Trafficking Awareness Month, we must not forget to look for the signs of human trafficking each and every day,” said Hamdani. “Together, we can combat this insidious crime and help to create a safer environment for everyone.”

To report a tip or ask for help, please call the National Human Trafficking Hotline at 1-888-373-7888.

HOUSTON – A 56-year-old woman who illegally resided in Houston has pleaded guilty to several sex trafficking crimes, announced U.S. Attorney Alamdar S. Hamdani.

Maria Botello-Morales admitted to sex trafficking with force, fraud or coercion and conspiracy to do so as well as sex trafficking of a minor.

“Sex trafficking takes many forms. Violators can be male or female, young or old.” Hamdani said. “Trafficking is as diverse as the population of this district, and we will work side by side with our partners and continue to root out this evil that is nothing less than a scourge on our society.”

Botello-Morales had recruited a minor female in 2007 from Mexico. Botello-Morales caused the minor to engage in commercial sex and took payment directly from the commercial sex buyers.  

Botello-Morales also ran Puerto Algre from 2015 to 2020. Puerto Algre was a cantina where several females were forced to engage in commercial sex in backrooms built specifically for that purpose. Botello-Morales and others threatened and intimidated these victims with violence to manipulate them into engaging in commercial sex for her personal financial benefit.  

The victims reported they had started at the bar as waitresses. However, Botello-Morales soon told them they had to engage in commercial sex. If they refused, she threatened them with violence. 

Some witnessed violence and weapons at the bar and in the back area where the sex acts occurred. Each described how they had to take customers to the backrooms. They were given a condom wrapped in a paper towel, were to spend no more than 15 minutes in the room and charge approximately $70. On the way out, they had to turn the money over to whoever was guarding the room.

One victim also explained that when she refused to come to work, Botello-Morales sent someone to physically assault her.

U.S. District Judge Andrew S. Hanen accepted the plea and set sentencing for June. At that time, Botello-Morales faces up to life in prison.  

Botello-Morales has been and will remain in custody pending that hearing.

Texas Alcohol and Beverage Commission (TABC) and Homeland Security Investigations (HSI) conducted the investigation with the assistance of the Houston Police Department (HPD) as part of the Human Trafficking Rescue Alliance (HTRA). Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.

HTRA law enforcement includes members of the HPD; FBI; HSI; Texas Attorney General’s Office; IRS-Criminal Investigation; Department of Labor (DOL); DOL – Wage and Hour Division; Department of State; Federal Air Marshals; TABC; Texas Department of Public Safety; Texas Rangers; Texas Parks and Wildlife; Social Security Administration – OIG; Texas Department of Licensing and Regulation; Texas Department of Family and Protective Services as well as police departments in Houston Independent School District (ISD), Conroe ISD and Missouri City; Harris County constables offices – Precincts one and four; sheriff’s offices in Harris, Montgomery, Fort Bend, Brazoria and Waller counties in coordination with District Attorney’s offices in Harris, Montgomery, Fort Bend and Galveston Counties. They work in coordination with victim service providers such as YMCA, United Against Human Trafficking and Texas Forensic Nurse Examiners.

Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.

CORPUS CHRISTI, Texas – A 41-year-old Pharr resident has been ordered to federal prison following his conviction of conspiring to sell narcotics to undercover law enforcement, announced U.S. Attorney Alamdar S. Hamdani.

Paublo Rueben pleaded guilty July 27, 2022.

Today, U.S. District Judge David S. Morales ordered Rueben to serve 240 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard about Rueben’s extensive criminal history and the fact that he was on state probation for a narcotics charge at the time of this offense.

During an undercover operation in February 2022, authorities negotiated the purchase of three kilograms of meth and two kilograms of cocaine from a narcotics supplier located in Mexico. They set a time and location to meet with Rueben and his co-defendant, Hector Vasquez Garcia, 46, Alamo, who would be delivering the drugs.

On Feb. 18, 2022, Rueben met with undercover authorities. At that time, they discussed how the narcotics were to be transported and compensation of the supplier.

Shortly after, law enforcement located a vehicle in which Rueben had traveled, conducted a search and located the meth and cocaine in a hidden compartment. Authorities then took Rueben and Garcia into custody.

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

Garcia is set for sentencing March 29. He remains in custody pending that hearing.

The Drug Enforcement Administration and Homeland Security Investigations conducted the investigation with the assistance of the Live Oak County Sheriff’s Office, George West Police Department and Texas Department of Public Safety. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.

HOUSTON – A 56-year-old business owner is set to appear in federal court for conspiring to commit mail fraud, announced U.S. Attorney Alamdar S. Hamdani.

Sudhakar Kalaga is charged in a one-count criminal information. He is expected to make his initial appearance before U.S. Magistrate Yvonne Ho at 2 p.m.

He allegedly engaged in a fraud scheme that ran for nine years.

“The consequences of illegal bribes and kickbacks can be devastating,” said Hamdani. “These charges demonstrate our continued commitment to protect victims from those who subvert competition using false, fraudulent and sham bids.”

The charges allege that from 2010 to 2019, Kalaga engaged in a bribery and bid rigging fraud scheme to secure construction and maintenance work contracts from a company with a manufacturing facility in Houston.

During that time, Kalaga allegedly submitted fake bids from non-existent construction companies to the victim company’s facilities manager. This was designed to make it appear his companies’ bids were the lowest, according t0 the allegations. In return, Kalaga allegedly paid the facilities manager millions of dollars in kickbacks. The information further alleges Kalaga failed to disclose he was submitting falsified bids and paying kickbacks from the victim company’s own funds.

The victim company would not have paid Kalaga’s companies’ invoices had it known about the falsified bids or the kickback payments, according to the charges.        

If convicted, Kalaga faces up to five years in federal prison and a possible $250,000 maximum fine.

The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.

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