Southern District of Texas
Press releases recorded for this federal judicial district.
Roma woman fails to convince jury she was in the wrong place at the wrong timeRead the Press Release
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.
Personal injury attorney convicted of obstructing justiceRead the Press Release
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.
SDTX efforts continue against human traffickersRead the Press Release
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.
Woman guilty of trafficking women in cantina backroomRead the Press Release
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.
Texan gets big sentence after attempting to sell narcoticsRead the Press Release
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.
Sugar Land business owner charged with nine-year fraud schemeRead the Press Release
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.
Local man sentenced for sexual exploitation of 15-year-old girl who later committed suicideRead the Press Release
GALVESTON, Texas – A 23-year-old League City resident has been ordered to federal prison for production of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Amari Mychael Singh pleaded guilty May 25, 2019, to one count of sexual exploitation of a child.
“This man’s actions led to death of an innocent girl,” said Hamdani. “While he will have to serve 25 years in prison, he will someday still have freedom and a life. She will not. The damage he caused her, her family and the other victims is immeasurable and has absolutely no place in our community.”
Today, U.S. District Judge Jeffrey V. Brown sentenced Singh to 300 months in federal prison. 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.
At the hearing, the court heard from the victim’s mother. She explained that her daughter had committed suicide in 2020 while charges were pending against Singh. She also read from journal passages her daughter had written, highlighting the emotional toll of Singh’s actions. Judge Brown further found Singh was a proximate cause of the victim’s death.
Throughout the proceeding, the courtroom was filled with members of Mady’s Movement, a human trafficking awareness organization the deceased victim’s mother had founded.
Judge Brown also considered a victim impact statement from another woman Singh victimized when she was in high school. The statement explained how Singh had raped her while she was incapacitated on drugs he had provided.
The court further ordered Singh to pay $11,454.10 in restitution to mother of the deceased victim and ordered Singh to register as a sex offender.
In 2019, law enforcement learned that a 15-year-old girl had reported that Singh, then 20, had recently produced a sexually-explicit video of her and distributed it over Snapchat.
Authorities obtained federal search warrants for Snapchat accounts of both the victim and Singh. The investigation confirmed the victim’s story. They also found the video of Singh having sex with the teenager on Singh’s cell phone.
Evidence from Singh’s Snapchat and cell phone showed he produced sexually-explicit videos of another underage female and used Snapchat to advertise drugs, guns and women for sale.
Singh has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility in the near future.
FBI-Texas City and the Texas Department of Public Safety conducted the investigation with the assistance of the League City Police Department.
Assistant U.S. Attorneys Zahra Fenelon and Stephanie Bauman 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.
NW Houston man gets 30 years for multiple charges involving the sexual exploitation of childrenRead the Press Release
HOUSTON – A 27-year-old Jersey Village resident has been ordered to prison for the sexual exploitation of children as well as receipt, distribution and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Andrew Jeffrey Swope pleaded guilty Jan. 27, 2022.
Today, U.S. District Judge Andrew S. Hanen ordered him to serve 360 months in federal prison. Restitution will be determined at a later date. Swope must 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. Swope will also be ordered to register as a sex offender.
“We must protect our most vulnerable victims – the children - from sexual exploitation,” said Hamdani. “No amount of prison or restitution can make these victims whole but lengthy prison sentences, like the one in this case, send a strong message to these despicable offenders that our law enforcement partners will spend as much time as necessary to bring them to justice.”
The investigation revealed Swope was communicating in a chat room on KiK which was dedicated to the receipt and distribution of child pornography. Swope was the owner of a chat room where he posted numerous images of child pornography. In this room, Swope also said he had been abusing a minor male from the time the boy was six until he was 10 years old.
Authorities later executed a search warrant at Swope’s residence in Jersey Village.
There, Swope answered the door holding a firearm. Law enforcement disarmed him, but he fled. He then attempted to dispose of a smartphone which contained child pornography images and videos depicting abuse of two minor children, among other things.
Swope produced a total of 311 images and 48 videos of two minor victims. He also possessed 4,625 images and 1,533 videos of child pornography.
Swope has been and will remained in custody since. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI Houston conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Houston woman convicted of using Instagram to commit fraudRead the Press Release
HOUSTON – A 22-year-old Houstonian has admitted to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
From March of 2020 until December of 2020, Desiree Coleman conspired with others to commit wire fraud by submitting false applications for government assistance. Coleman instructed others on how to defraud government programs and applied for others using false representations.
She charged a fee per fraudulent application she filed.
Coleman used the internet to conduct the fraudulent schemes and had advertised her services via her Instagram stories. Most of Coleman’s conversations regarding FEMA and unemployment fraud schemes were conducted via private Instagram messages. Her Instagram page had close to 3,000 followers.
U.S. District Judge George C. Hanks Jr. accepted the plea and has set sentencing for May 1. At that time, Coleman faces up to five years in federal prison as well as a possible $250,000 maximum fine.
Coleman was permitted to remain on bond pending that hearing.
The Department of Homeland Security-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez prosecuted the case.
Federal agent sent to prison for aiding drug smugglingRead the Press Release
McALLEN, Texas – A former Border Patrol (BP) agent has been ordered to federal prison for attempting to aid and abet smuggling cocaine through a checkpoint, announced U.S. Attorney Alamdar S. Hamdani.
Oberlin Cortez Pena Jr., 23, La Joya, pleaded guilty Dec. 17, 2021.
Today, U.S. District Judge Randy Crane sentenced him to a total of 121 months in federal prison to be immediately followed by five years of supervised release.
At the hearing, the court heard additional evidence that he had brandished an AR-15 rifle while meeting with co-defendant Edwin Alejandro Castillo to plan the smuggling of a second load of cocaine through the Falfurrias BP checkpoint. Pena attempted to convince the court that he possessed the rifle because he was on his way to hunt hogs after meeting Castillo.
In handing down the sentence, the court found Pena’s explanation unconvincing and assessed a sentencing enhancement for possession of a firearm during drug trafficking. The court further noted that honest law enforcement is the foundation of civil society, and the presence of a corrupt agent, especially at the BP checkpoint, could lead to immeasurable damage to the country.
“Honest law enforcement is a cornerstone of public trust,” said Hamdani. “This defendant violated his oath to defend the Constitution, and he betrayed that trust to engage in criminal activity for financial gain. Today’s sentence is a message that we will aggressively investigate and prosecute allegations of law enforcement corruption and continue to seek significant sentences when necessary to protect the public and their trust in our institutions.”
At the time of his plea, Pena admitted that on two separate occasions, he helped smuggle over five kilograms of cocaine through the Falfurrias checkpoint. Specifically, he used his knowledge as a BP agent and directed loads through particular checkpoint lanes, further acting as a scout and providing information about the inspection lanes and which one to use. Pena also gave detailed instructions on how to conceal the drugs and tactics to employ in order to distract the canine unit at the checkpoint.
Four others have been convicted as part of the investigation. Kristian Nicole West, 33, Corpus Christi, and Herbey Jose Solis III, 29, Mission, pleaded guilty to alien smuggling.
Castillo, 24, Sullivan City, and Jose Luis Duran, 26, Mission, admitted to alien smuggling. At the time of their pleas, Castillo also admitted to bribery, while Duran was also convicted of conspiracy to commit bribery. They each received 36 months in prison.
Previously released on bond, Pena was taken into custody in December 2022 after he was found possessing a firearm at a ranch. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Homeland Security - Office of Inspector General conducted the investigation with assistance from Customs and Border Protection - Office of Professional Responsibility and BP. Assistant U.S. Attorneys Jongwoo Chung and John Pearson prosecuted the case.
Three Men Sentenced for Roles in Bribery ConspiracyRead the Press Release
Three Texas men were sentenced yesterday for their roles in a conspiracy to pay bribes to two city commissioners in Weslaco in exchange for their official actions in connection with city contracts worth tens of millions of dollars.
Former Hidalgo County Commissioner Arturo C. Cuellar Jr., 69, of Progresso Lakes, was sentenced to 20 years in prison. Ricardo Quintanilla, 57, and John F. Cuellar, 60, both of Weslaco, were sentenced to 200 months and three years in prison, respectively.
“Americans deserve safe, clean water provided through fair and open contracting, not illicit back-room deals,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As this prosecution demonstrates, the Department of Justice is committed to prosecuting public officials and their enablers who award infrastructure contracts based on corrupt connections instead of merit.”
“Our office will not turn a blind eye to public corruption, especially when it results in significant burdens to residents within our district,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Weslaco was warned for years to upgrade its water infrastructure in order to provide potable water. The defendants used this opportunity to participate in a multimillion-dollar scheme that ultimately saddled residents with debt and bribery costs for their drinking water system. We hope the message in today’s sentencings will deter others from committing such crimes and provide some closure to the citizens of Weslaco.”
According to court documents and evidence presented at trial, Arturo Cuellar and Quintanilla agreed with others to bribe two Weslaco City Commissioners, John Cuellar and Gerardo Tafolla, in exchange for official actions favorable to engineering companies seeking large contracts with the city. From approximately March 2008 through December 2015, one of the participants in the scheme received approximately $4.1 million from two engineering companies and shared nearly $1.4 million with Arturo Cuellar. Arturo Cuellar used a company he controlled to facilitate the payment of approximately $405,000 in bribes to his cousin, John Cuellar, which were disguised as legitimate legal expenses. In exchange for these payments, John Cuellar took several official actions to benefit the companies, including helping to award contracts worth approximately $38.5 million to rehabilitate Weslaco’s water treatment facilities. Quintanilla received approximately $85,000 during the course of the scheme and used that money to pay cash bribes to Tafolla for his official actions to benefit the companies that received the water treatment plant contracts.
Arturo Cuellar and Quintanilla were convicted at trial in the Southern District of Texas in October 2022. Arturo Cuellar was convicted of 61 counts in total, including one count of conspiracy to commit honest services wire fraud, four counts of honest services wire fraud, one count of federal programs bribery, one count of money laundering conspiracy, 27 counts of money laundering, and 27 counts of Travel Act violations. Quintanilla was convicted of 15 counts in total, including one count of conspiracy to commit honest services wire fraud, four counts of honest services wire fraud, one count of federal programs bribery, one count of money laundering conspiracy, and eight counts money laundering. John Cuellar pleaded guilty to one count of conspiracy to commit honest services fraud in August 2019.
“Today’s sentencing is a testament to the FBI’s commitment to pursue public corruption alongside our law enforcement partners. Any public official who chooses to serve themselves over their constituents will be brought to justice. Rio Grande Valley residents deserve elected leaders who can be trusted,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office. “The FBI would like to thank the U.S. Attorney’s Office, the Department of Justice Public Integrity Section, and the IRS for their partnership and dedication to bringing these corrupt individuals to justice.”
“IRS Criminal Investigation remains steadfast in its commitment to quickly unravel public corruption schemes, as these frauds greatly undermine the trust placed by the public in its elected officials,” said Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (IRS-CI) Houston Field Office. “No matter how complex the financial fraud, or well-insulated the corrupt officials and individuals or businesses are, our special agents will rigorously work to hold all accountable to face the consequences of their crimes and personal greed. We continuously ask the public to submit allegations of public corruption fraud to IRS-CI, FBI, and the U.S. Attorney’s Office.”
Tafolla pleaded guilty in April 2019 and will be sentenced at a later date.
The FBI San Antonio Field Office and IRS-CI Houston Field Office investigated the case.
Senior Litigation Counsel Marco A. Palmieri and Trial Attorney William J. Gullotta of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Roberto Lopez Jr. for the Southern District of Texas are prosecuting the case. Deputy Chief of PIN Peter M. Nothstein and former PIN Trial Attorneys Erica O’Brien Waymack and Jessica C. Harvey provided valuable assistance.
South Texas woman sentenced for trafficking over $1M in crystal meth and black tar heroinRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Mission woman has been sent to prison following her conviction of possession with the intent to distribute more than 31 kilograms of meth, announced U.S. Attorney Alamdar S. Hamdani.
Cristina Inez Marquez pleaded guilty April 28, 2022.
Today, U.S. District Judge David S. Morales ordered Marquez to serve 190 months in federal prison to be immediately followed by five years of supervised release.
At the time of her plea, Marquez admitted that on Dec. 29, 2021, she drove a gray Ford Explorer northbound on Highway 281 near Alice. She also admitted to knowingly transporting and possessing over 31 kilograms of meth and five kilograms of heroin.
Law enforcement conducted a traffic stop and conducted an inspection. At that time, they discovered the fuel tank had been tampered with and removed. Upon examining the contents, authorities found 12 concealed bundles of what appeared to be crystal meth and black tar heroin. The weight of the bundles exceeded 85 pounds.
Analysis later confirmed the substances in the bundles were in fact crystal meth at 95% purity with a net weight of 31.41 kilograms and black tar heroin with a net weight of 5.95 kilograms. The drugs had an estimated street value of more than $1.3 million.
Marquez 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. Assistant U.S. Attorney John Marck prosecuted the case.
La Quarenta gang drug dealers sent to prison for poly-drug conspiracyRead the Press Release
CORPUS CHRISTI, Texas – Two Corpus Christi men have been ordered to federal prison for conspiring to possess with intent to distribute meth, heroin and cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Ricky Reyna, 36, and Jayden Wandell Coleman, 20, pleaded guilty Oct. 20, 2021, and Jan. 27, 2022, respectfully.
Today, U.S. District Judge David S. Morales ordered Reyna to serve a total of 300 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that Reyna, a member of the La Quarenta street gang, ran a 24/7 narcotics storefront that sold heroin, meth, cocaine, crack-cocaine and synthetic marijuana.
Coleman was previously sentenced April 20, 2022, and was ordered to serve a 121-month term of imprisonment. A fourth member of the conspiracy, Fernando Martinez, 44, also pleaded guilty on Nov. 23, 2021, and is scheduled to be sentenced March 15.
“Today’s sentence sends a strong message that our office will relentlessly work toward dismantling and disrupting local street gangs such as La Quarenta,” said Hamdani. “Criminal activity in our community is all too often fueled by drug traffickers, particularly those affiliated with these such groups.”
The investigation began in September 2020. It revealed the narcotics trafficking organization used a Corpus Christi residence on Cortez Street to distribute meth, heroin, crack and marijuana. Authorities observed Reyna, Martinez, and Coleman entering and exiting the drug stash house as various times and directing people to the residence. The conspiracy spanned from Sept. 6, 2020 to Aug. 26, 2021.
Over the course of the investigation, law enforcement observed a high amount of foot traffic approach and enter the residence, stay for a few minutes and then exit the area. Traffic stops resulted in the seizure of narcotics they had obtained from the drug stash house.
Authorities also executed search warrants at four residences and a storage yard in August 2021. They ultimately found a total of over five kilograms of cocaine, over four kilograms of meth, more than two kilograms of heroin; nearly 200 grams of crack and 13 kilograms of marijuana and over a hundred thousand dollars, digital scales, a drug ledger, and loaded firearms and ammunition.
The investigation further revealed the men were in communication with each other regarding the purchase and sale of various narcotics for the duration of the conspiracy.
“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) would like to thank the U.S. Attorney’s Office, Customs and Border Protection Air and Marine Operations, Corpus Christi Police Department’s Gang Unit and Homeland Security Investigations (HSI) for their continued partnership and commitment to combating violent crime,” said Special Agent in Fred Milanowski. “As a result of our joint efforts, members of this criminal organization will no longer threaten our communities with their brazen acts of illegal activity.”
“Today’s sentencing is another step in the right direction in our collective effort to root out and eradicate the trafficking of illicit narcotics in the Corpus Christi community by gangs and other criminal elements, but there is much more work to do,” said Assistant Special Agent in Charge Mario Trevino, HSI - Corpus Christi. “HSI will continue to work alongside our law enforcement partners to aggressively pursue anyone who traffics these deadly substances to keep them from poisoning our children and destroying our local communities.”
Reyna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Customs and Border Protection Air and Marine Operations and Corpus Christi Police Department’s Gang Unit. Assistant U.S. Attorney John Marck prosecuted the case.
Three men sentenced for roles in bribery conspiracyRead the Press Release
McALLEN, Texas – Three Texas men have been sentenced for their roles in a conspiracy to pay bribes to two city commissioners in Weslaco in exchange for their official actions in connection with city contracts worth tens of millions of dollars.
U.S. District Judge Micaela Alvarez sentenced former Hidalgo County Commissioner Arturo C. Cuellar Jr., 69, of Progresso Lakes, to 20 years in prison yesterday. Ricardo Quintanilla, 57, and John F. Cuellar, 60, both of Weslaco, were sentenced to 198 months and three years in prison, respectively.
“Americans deserve safe, clean water provided through fair and open contracting, not illicit back-room deals,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “As this prosecution demonstrates, the Department of Justice is committed to prosecuting public officials and their enablers who award infrastructure contracts based on corrupt connections instead of merit.”
“Our office will not turn a blind eye to public corruption, especially when it results in significant burdens to residents within our district,” said Alamdar S. Hamdani, U.S. Attorney for the Southern District of Texas. “Weslaco was warned for years to upgrade its water infrastructure in order to provide potable water. The defendants used this opportunity to participate in a multi-million dollar scheme that ultimately saddled residents with debt and bribery costs for their drinking water system. We hope the message in today’s sentencings will deter others from committing such crimes and provide some closure to the citizens of Weslaco.”
According to court documents and evidence presented at trial, Arturo Cuellar and Quintanilla agreed with others to bribe two Weslaco City Commissioners, John Cuellar and Gerardo Tafolla, in exchange for official actions favorable to engineering companies seeking large contracts with the city. From approximately March 2008 through December 2015, one of the participants in the scheme received approximately $4.1 million from two engineering companies and shared nearly $1.4 million with Arturo Cuellar. Arturo Cuellar used a company he controlled to facilitate the payment of approximately $405,000 in bribes to his cousin, John Cuellar, which were disguised as legitimate legal expenses. In exchange for these payments, John Cuellar took several official actions to benefit the companies, including helping to award contracts worth approximately $38.5 million to rehabilitate Weslaco’s water treatment facilities. Quintanilla received approximately $85,000 during the course of the scheme and used that money to pay cash bribes to Tafolla for his official actions to benefit the companies that received the water treatment plant contracts.
Arturo Cuellar and Quintanilla were convicted at trial in the Southern District of Texas in October 2022. Arturo Cuellar was convicted of 61 counts in total, including one count of conspiracy to commit honest services wire fraud, four counts of honest services wire fraud, one count of federal programs bribery, one count of money laundering conspiracy, 27 counts of money laundering, and 27 counts of Travel Act violations. Quintanilla was convicted of 15 counts in total, including one count of conspiracy to commit honest services wire fraud, four counts of honest services wire fraud, one count of federal programs bribery, one count of money laundering conspiracy, and eight counts money laundering. John Cuellar pleaded guilty to one count of conspiracy to commit honest services fraud in August 2019.
“Today’s sentencing is a testament to the FBI’s commitment to pursue public corruption alongside our law enforcement partners. Any public official who chooses to serve themselves over their constituents will be brought to justice. Rio Grande Valley residents deserve elected leaders who can be trusted," said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office. “The FBI would like to thank the U.S. Attorney’s Office, the Department of Justice Public Integrity Section, and the IRS for their partnership and dedication to bringing these corrupt individuals to justice.”
“IRS - Criminal Investigation (CI) remains steadfast in its commitment to quickly unravel public corruption schemes, as these frauds greatly undermine the trust placed by the public in its elected officials,” said Special Agent in Charge Ramsey E. Covington of IRS-CI’s Houston Field Office. “No matter how complex the financial fraud, or well-insulated the corrupt officials and individuals or businesses are, our special agents will rigorously work to hold all accountable to face the consequences of their crimes and personal greed. We continuously ask the public to submit allegations of public corruption fraud to IRS-CI, FBI and the U.S. Attorney’s Office.”
Tafolla pleaded guilty in April 2019 and will be sentenced at a later date.
The FBI San Antonio Field Office and IRS-CI Houston Field Office investigated the case.
Senior Litigation Counsel Marco A. Palmieri and Trial Attorney William J. Gullotta of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Roberto Lopez Jr. for the Southern District of Texas are prosecuting the case. Deputy Chief of PIN Peter M. Nothstein and former PIN Trial Attorneys Erica O’Brien Waymack and Jessica C. Harvey provided valuable assistance.
Mexican women sent to prison for smuggling heroin balls in potato chip bagsRead the Press Release
LAREDO, Texas – Two women residing in Monterrey, Mexico, have been ordered to federal prison for their roles in importing nearly 1000 grams of heroin, announced U.S. Attorney Alamdar S. Hamdani.
Maria Luisa Hernandez-Alanis, 41, and Tania Melissa Coutino-Hernandez, 40, pleaded guilty Nov. 1, 2022.
Today, U.S. District Judge Marina Garcia Marmolejo imposed a 36-month term of imprisonment for both women. Not U.S. citizens, they will be expected to face removal proceedings following their sentences. At the hearing, the court heard additional evidence regarding their roles in the crime, determining that they each agreed equally to participate in the scheme. In handing down the prison terms, Judge Marmolejo noted heroin is a very serious problem in the United States, resulting in thousands of overdose deaths every year.
At the time of their pleas, they admitted that on Sept. 4, 2022, they arrived at the Juarez-Lincoln Bridge Port of Entry in Laredo in a vehicle. They applied for entry into the United States by presenting B1/B2 tourist visas.
At secondary inspection, law enforcement discovered two yellow bags of potato chips inside of Coutino-Hernandez’s purse. The bags appeared to be sealed and unopened. However, the contents felt like a heavy ball. Further inspection revealed the bags contained heroin bundles weighing 983.9 grams.
The investigation revealed the pair were both aware of the drugs and were going to be paid $300 each to cross into the country with them. The co-conspirators planned on returning to Mexico with a large amount of cash.
Both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison prosecuted the case.
Convicted felon imprisoned for firearms conviction after fleeing from policeRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Falfurrias resident has been ordered to federal prison following his conviction for being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Hector Hernandez pleaded guilty Sept. 21, 2022.
Today, U.S. District Judge Drew B. Tipton ordered him to serve 66 months in federal prison. At the hearing, the court heard additional information regarding Hernandez’s history of possessing firearms in vehicles as a convicted felon which includes two incidents in the year proceeding his arrest. The court also heard details of Hernandez’s flight from police and that the firearm he possessed was previously reported stolen.
On June 22, 2022, authorities attempted a traffic stop on a vehicle Hernandez was driving. He failed to stop and continued through several neighborhood streets at a high rate of speed. Even though two tires became disabled, he continued to drive on the rims. When the vehicle finally stopped, law enforcement discovered a firearm inside the waistband of Hernandez’s pants.
There were also two passengers in the car found to be illegally present in the United States.
Hernandez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives and Brooks County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Liesel Roscher prosecuted the case.
Violent armed robbery results in massive sentence for Cle Nightclub security guardRead the Press Release
HOUSTON – A 27-year-old security guard working at a downtown Houston nightclub has been sent to prison following his conviction of a violent armed robbery in 2019, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury sitting in Houston convicted Hakeem Alexander Coles for interference with commerce by robbery and discharging a firearm during a crime of violence June 6, 2022, following a five-day trial.
Today, U.S. District Ewing Werlein Jr. handed Coles a 240-month term of imprisonment for the robbery. He also received another 240 months for the firearms charge which must be served consecutively to the other sentence imposed. The total 40-year prison term will run consecutively to a 17-year sentence he received in Minnesota for another robbery and assaulting a federal agent.
Coles, of Minneapolis, Minnesota, used a false identity to get hired as a security guard for Cle Nightclub. He worked there for about two weeks. On Sept. 7, 2019, after the business closed, he robbed the employees at gunpoint and demanded $20,000 cash.
At trial, the jury heard from witnesses who described how Coles was hired as a security guard using someone else’s identity. They also heard from employees at Cle who described how he had robbed them at gunpoint and discharged his firearm toward them as he fled the scene.
The investigation led to Coles’ arrest in Louisiana. At that time, he was found in possession of a loaded firearm and the false identification he used to gain employment at Cle. Law enforcement was soon able to uncover his true identity.
The jury also heard evidence of another robbery Coles had committed in Minneapolis three weeks prior to the Cle robbery. In that case, Coles was working as a security guard at Cowboy Jacks Bar and Restaurant and robbed the employees during closed hours as well. Coles pleaded guilty in 2020 and received 17 years in federal prison on that case.
The defense attempted to convince the jury in this case that Coles did not commit the crime and it was, in fact, the individual whose identity he had stolen. The jury did not believe those claims and found him guilty as charged.
Coles 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 Harris County Sheriff’s Office; Gretna Police Department in Louisiana and Homeland Security Investigations. Assistant U.S. Attorneys Britni Cooper and Luis Batarse prosecuted the case.
This is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Local man charged with soliciting sexual images of a minor via WhatsAppRead the Press Release
McALLEN, Texas – A 61-year-old McAllen resident has been arrested for coercion and enticement of a minor, announced U.S. Attorney Alamdar S. Hamdani.
Fabian Vela is expected to make his initial appearance before U.S. Magistrate Judge Nadia S. Medrano at 9 a.m. Authorities took him into custody yesterday as he re-entered the United States at a Port of Entry in Hidalgo County.
The criminal complaint charges Vela with coercion and enticement of a minor from on or about Sept. 29 – Oct. 5, 2022.
Vela allegedly coerced and enticed a minor victim through the use of the WhatsApp messaging application and a cellular telephone. He persuaded the victim to send multiple nude and sexually explicit images in exchange for payment, according to the charges.
If convicted, Vela faces up to life in prison.
Homeland Security Investigations – Rio Grande Valley Child Exploitation Investigations Task force conducted the investigation with assistance from the U.S. Secret Service and the San Juan Police Department.
Assistant U.S. Attorneys Michael Mitchell and Devin Walker are prosecuting the case which is 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.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former law enforcement officer guilty of sexual assaultRead the Press Release
HOUSTON – A federal jury in Houston has found a 33-year-old former state trooper guilty for assaulting two women while on duty, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for three hours before returning a guilty verdict against Lee Ray Boykin Jr. following a four-day trial.
“My office is firmly committed to ensuring the civil rights of every person in the Southern District of Texas,” said U.S. Attorney Hamdani. “We rely on our police officers and federal agents every day to serve and protect. This lone officer, however, used his authority to stalk and prey on his victims for his own sexual gratification. We are pleased the jury agreed that such conduct will not be tolerated in our community.”
The jury determined Boykin had deprived two separate victims of their right to bodily integrity while acting in his capacity as a state trooper with the Texas Department of Public Safety (DPS) in that he committed aggravated sexual abuse as to one victim and kidnapping as to the other victim. He was also found guilty of two counts of destruction, alteration or falsification of records in a federal investigation.
At trial, one of the victims explained how Boykin had taken her to a secluded parking lot after being ordered out of her friend’s car following a traffic stop. Once there, Boykin falsely accused her of being a prostitute, threatened to take her to jail and forced her to perform oral sex on him. Afterwards, he told her to run while placing his hand on his gun.
The jury heard evidence that showed Boykin’s DNA on the parking lot. The victim’s DNA was also found on Boykin’s underwear.
The second victim testified that Boykin ordered her out of her friend’s car and placed her into Boykin’s vehicle. Boykin falsely told her she had outstanding traffic warrants. He then took this victim to the same secluded parking lot, where she performed oral sex on him. Three days later, Boykin attempted to get her into his trooper car again, but she was able to escape.
The jury heard about statements Boykin had made to authorities. Regarding the sexual assault of the first victim, he said he thought he “got away with it” and knew he should not have done it. He said he “just wanted to try.”
The jury did not believe defense claims and ultimately found him guilty.
U.S. District Judge George C. Hanks Jr. presided over trial and set sentencing for April 4. At that time, Boykin faces up to life in federal prison.
Boykin has been and will remain in custody pending sentencing.
The Houston Police Department and Texas Rangers conducted the investigation with the assistance of FBI and DPS. Assistant U.S. Attorneys Sebastian A. Edwards and Kate A. Suh are prosecuting the case.
DOT employee admits to extortionRead the Press Release
HOUSTON – A 54-year-old Lyford man had entered a guilty plea to extortion under color of law, announced U.S. Attorney Alamdar S. Hamdani.
Patrick Gorena was a border investigator for Department of Transportation (DOT)’s Federal Motor Carrier Safety Administration.
As part of his plea, Gorena admitted that when auditing a trucking company, he did not report safety violations that would have exposed the company to potential fines and the loss of their DOT license. In return, Gorena demanded $3,500.
However, he ultimately accepted $2,000 from an undercover law enforcement officer posing as a representative of the trucking company.
U.S. District Judge David Hittner will impose sentencing April 18. At that time, Gorena faces up to 20 years in prison.
He was permitted to remain on bond pending that hearing.
The Department of Transportation - Office of the Inspector General and FBI conducted the investigation. Assistant U.S. Attorney Richard Hanes is prosecuting the case along with Trial Attorney Lauren Castaldi of the Justice Department’s Public Integrity Section.
2 guilty in $1 million COVID fraud schemeRead the Press Release
HOUSTON – A 30-year-old Orlando, Florida, man has admitted to conspiracy to commit wire fraud in connection with a scheme to defraud the United States of COVID related disaster loan proceeds, announced U.S. Attorney Alamdar S. Hamdani.
Dylan Kinlock entered his plea of guilty today. Co-defendant Felicia Garza, 36, Houston, pleaded guilty to the same charge Jan. 9.
Kinlock and Garza admitted they devised a scheme to solicit others to fraudulently apply for Paycheck Protection Program (PPP) loans the Coronavirus Aid, Relief and Economic Security (CARES) Act provided. The two utilized victims’ personal information to create falsified documents and applied for a PPP loan on their behalf.
The fraud scheme resulted in at least 241 fraudulent PPP loans which led to the distribution of more than $1 million Kinlock received at least $709,665 in fee income from individuals he assisted in securing the fraudulent PPP Loans.
Numerous individuals residing in the Southern District of Texas applied for PPP loans through Kinlock. They all reported that Kinlock attached fraudulent documents to their application without their knowledge, and that the applications contained false statements about the number of employees their business had.
The false documents included fictitious Schedule C tax forms reporting profit or loss from a business, 1099-MISC forms and invoices reporting incorrect income to qualify for the loans. Kinlock solicited each of his victims to execute a contract with him in which they agreed to share a portion of their PPP loans.
After Kinlock’s clients received their PPP loan funds, Kinlock directed the client to send him his fee through various means including direct deposit into his bank account or electronic payment methods Zelle, CashApp or Venmo. Kinlock’s fee ranged from $3000 to $4,000 per loan or 20% of the amount his client received.
He used the monies to pay off his home in Florida. As part of his plea, he has agreed to forfeit that residence.
The CARES Act is a federal law enacted March 27, 2020, to provide emergency financial assistance to the millions of Americans who suffered the economic effects caused by the COVID-19 pandemic.
Senior U.S. District Judge David Hittner accepted the pleas and set sentencing for April 11. At that time, each faces up to 20 years in prison and a possible $250,000.
Kinlock was permitted to remain on bond pending sentencing. Garza also remains on bond.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
Smuggler admits to smuggling conspiracy resulting in two deathsRead the Press Release
LAREDO, Texas - A 34-year-old citizen of the Dominican Republic has pleaded guilty to conspiracy to transport undocumented aliens within the United States resulting in a death, announced U.S. Attorney Alamdar S. Hamdani.
Wilkin Perez-Perez had been in charge and managing the transportation of aliens into the United States as well as the harboring of these aliens in the country.
On Sept, 21, 2017, Melvin L. Barahona-Godoy and Yoryi Alexis Perez led several people to the Rio Grande River. Two of the undocumented aliens drowned while trying to cross the river and into the United States. Their bodies were discovered along the river banks.
The investigation led to Perez-Perez who had returned to the Dominican Republic. He was determined to being in charge of and managing the U.S. branch of the organization. He had coordinated the transportation of these aliens into the interior of the United States and harboring them in Laredo. This led to the two deaths.
Authorities ultimately apprehended him on the charges. He was later extradited to the United States.
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, he faces up to life in federal prison and a possible $250,000 maximum fine.
Perez-Perez has been and will remain in custody pending that hearing.
Melvin L. Barahona-Godoy, 27, Guatemala, and Perez, 33, Dominican Republic, were also charged in relation to the transportation and harboring of the men and others. They have since been convicted and sentenced.
Homeland Security Investigations, Border Patrol and U.S. Marshals Service conducted the investigation.
Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case.
Mexican national heads to prison for harboring individuals and possessing firearmsRead the Press Release
BROWNSVILLE, Texas – A 22-year-old man illegally residing in San Benito has been ordered to federal prison following multiple convictions, announced U.S. Attorney Alamdar S. Hamdani.
Edgar Garcia-Torres pleaded guilty July 28, 2022, to harboring undocumented individuals within the United States for commercial advantage and private financial gain, being an alien in possession of a firearm and illegal re-entry into the United States.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Garcia-Torres to serve 48 months in federal prison. Not a U.S. citizen, Garcia-Torres is again expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the multiple crimes to which Garcia-Torres pleaded guilty.
On June 13, 2022, law enforcement discovered two harbored aliens at a residence located on Palm Drive in San Benito. Shortly after, they arrested Garcia-Torres for harboring the undocumented individuals. A subsequent search of a second residence located on Bowie Street resulted in the seizure of two firearms, one of which was stolen, and $17,500 in U.S. currency. Authorities were able to link the items to Garcia-Torres.
He ultimately admitted to harboring 50-60 undocumented aliens at the location.
Garcia-Torres had been previously removed from the country and did not have lawful presence in the United States.
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.
Border Patrol, Homeland Security Investigations and Cameron County Precinct 4 Constable’s Office conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
San Antonio septuagenarian convicted of trafficking $1 million in marijuanaRead the Press Release
CORPUS CHRISTI, Texas – A 70-year-old San Antonio woman has pleaded guilty to possessing with the intent to distribute more than 90 kilograms of marijuana, announced U.S. Attorney Alamdar S. Hamdani.
On Sep. 11, 2022, Diana Vela drove a Ford Fusion sedan into the primary inspection area of the Border Patrol (BP) checkpoint located near Falfurrias. A service K-9 alerted to the presence of narcotics in the vehicle. When authorities asked for permission to search the sedan, Vela reported to have drugs in the trunk.
When agents opened the trunk, they discovered 10 large, vacuum-sealed bundles of marijuana weighing over 200 pounds.
Laboratory analysis later confirmed the substance in the bundles was marijuana.
The marijuana had a total weight 91 kilograms with an estimated street value of more than $1 million.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing April 12. At that time, Vela faces up to 40 years in prison as well as a maximum $1 million possible fine.
She was permitted to remain on bond pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorneys John Marck and Robert D. Thorpe Jr. are prosecuting the case.
Preparing fraudulent returns results in prison for tax servicerRead the Press Release
CORPUS CHRISTI, Texas – A tax preparer has been sent to federal prison following her conviction for conspiring to commit tax fraud over a four-year period, announced U.S. Attorney Alamdar S. Hamdani.
Jeannette Villarreal pleaded guilty July 6, 2022, to preparing and filing income tax returns for clients under the business name of J&G Armadillo’s Tax Service aka Reals Tax Service.
Today, U.S. District Judge Nelva Gonzales Ramos imposed an 18-month term of imprisonment as well as a $15,000 fine. She must also serve three years of supervised release following her incarceration. At the hearing, the court heard additional evidence about the scope of the conspiracy which included thousands of fraudulent tax returns prepared over a six-year period resulting in a significant tax loss to the United States. In handing down the prison term, Judge Ramos noted Villarreal was the leader of an extensive criminal activity and she had recruited her two daughters into the enterprise. Judge Ramos concluded that a prison sentence was necessary despite Villareal’s lack of criminal history to provide just punishment and afford adequate deterrence.
Villarreal’s two daughters, Leannette Villarreal and Zeannette Salazar, were also convicted in the conspiracy.
“These three tax preparers not only betrayed the trust of their clients, who counted on them to prepare accurate returns, they betrayed the trust of all taxpaying Americans,” said Special Agent in Charge Ramsey E. Covington of IRS - Criminal Investigation’s Houston Field Office. “As we enter the 2023 tax filing season, I implore all taxpayers who plan to hire a third-party to prepare and file their tax return to choose their preparer wisely and ask questions before and during the preparation process. Finally, always ensure everything on your tax return is both correct and legitimate before signing the return, or Form 879 - IRS e-File Signature Authorization, and submitting the return to the IRS.”
At the time of their pleas, Villarreal and her daughters each admitted to one count of conspiracy to defraud the United States by willfully aiding and assisting in the preparation of false income tax returns.
On numerous occasions, they knowingly reported inaccurate earnings, fictitious charitable contributions and improper tax credits in order to increase the refund paid to the client. The tax returns purported their clients were permitted to claim deductions, credits or both. However, they were not entitled to claim more money, resulting in a tax loss to the United States.
Jeannette Villarreal was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Robert D. Thorpe Jr. and John Marck prosecuted the case.
Laredo man sent to prison after shootingRead the Press Release
LAREDO, Texas – A 29-year-old Laradoan has been ordered to federal prison for possession of a firearm by a convicted felon, announced U.S. Attorney Alamdar S. Hamdani.
Jimmy Lara pleaded guilty Feb. 28, 2022.
Today, U.S. District Judge Diana Saldaña ordered Jimmy Lara to serve a total of 108 months in prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information about possible enhancements for committing a felony with the firearm and discarding the loaded firearm near a school.
On Jan. 5, 2022, authorities responded to a 911 report of shots fired on the 1500 block of Pinder Avenue. There, a passenger in a brown pickup truck had apparently fired shots at a white van.
Law enforcement observed a vehicle matching the description and attempted a traffic stop. Lara was the passenger, but had exited the vehicle and began running towards Juarez Avenue. He appeared to have an object in one of his hands.
Authorities briefly chased him on foot and apprehended him after approximately one block. They returned to Juarez avenue where they located a .22 caliber revolver on the sidewalk.
The investigation revealed Lara has prior convictions for robbery and aggravated robbery. As such, he is prohibited from possessing a firearm or ammunition per federal law.
In addition, the firearm was reported stolen out of Mathis.
Lara will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
Texas Chicano Brotherhood general sent to prisonRead the Press Release
VICTORIA, Texas – A 53-year-old resident of Harlingen has been ordered to prison for his role in a cocaine conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Tony “Klownman” Torres, a general within the Texas Chicano Brotherhood criminal organization, pleaded guilty Nov. 8 , 2022, to conspiracy to possess with intent to distribute cocaine and being a felon in possession of a firearm.
Today, Senior U.S. District Judge John D. Rainey ordered Torres to prison for 10 years to be immediately followed by five years of supervised release.
The Texas Chicano Brotherhood is a prison gang operating primarily in the Rio Grande Valley. Many members of the criminal organization have been convicted of crimes that include murders, home invasions, kidnappings and drug trafficking.
“Gangs like the Texas Chicano Brotherhood often rely on trafficking deadly narcotics to fund their operations and other illicit criminal activities,” said Assistant Special Agent in Charge Mario Trevino of Homeland Security Investigations (HSI) Corpus Christi. “By working alongside our federal, state and local law enforcement partners to disrupt their drug trafficking operations, we are able to keep these deadly poisons from destroying countless lives and prevent the gang from raising the criminal proceeds that they need to reign terror on our local communities.”
The investigation began in 2016 and revealed the drug trafficking operation involved the distribution of over five kilograms of cocaine. It led to the identities of at least 70 Texas Chicano Brotherhood members and exposed the organization’s rank and structure.
Torres was one of two generals and oversaw the groups criminal activities in the “free world” after they were released from prison. Torres was found to have distributed cocaine in the Harlingen area as his part of the overall conspiracy.
Ultimately, law enforcement conducted a search warrant at his residence which resulted in the seizure of a .357 Smith & Wesson revolver. As a convicted felon, he is prohibited per federal law of possessing a firearm or ammunition.
Torres has been and will remain in custody pending transfer to a U.S. Bureau Prisons facility to be determined in the near future.
Torres is the third high-ranking member of the gang to be sentenced in the case. In 2020, Judge Rainey sentenced Ricardo Garcia, Rio Grande City, to a 20-month-term of imprisonment, while Rafael Diaz, also of Rio Grande City, received a sentence of 145 months. Garcia and Diaz are a major and captain, respectively, in the Texas Chicano Brotherhood organization.
HSI conducted the investigation along with Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms and Explosives; Border Prosecution Unit from the Starr County and Hidalgo County District Attorney’s Office and Texas Office of the Attorney General. Assistant U.S. Attorneys Patti Hubert Booth and David Paxton prosecuted the case.
Repeat offender sent to prison againRead the Press Release
CORPUS CHRISTI, Texas - A 37-year-old member of the Texas Syndicate prison gang has been ordered to federal prison for possessing firearms as a convicted felon, announced U.S. Attorney Alamdar S. Hamdani.
John Henry Jimenez aka Joker, Corpus Christi, pleaded guilty Sept. 28, 2022.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Jimenez to serve 40 months in federal prison to be immediately followed by three years of supervised release.
At the hearing, Judge Ramos heard evidence of his extensive criminal history involving narcotics, firearms, burglary and assaults. She also heard evidence that Jimenez is an active member in the Texas Syndicate Prison Gang.
On March 2, 2022, law enforcement conducted a traffic stop on the vehicle Jimenez was driving, at which time they found a handgun with an obliterated serial number under his seat.
A traffic stop two months later led to his arrest again. While officers were taking him into custody, they discovered a handgun in his waistband.
Jimenez had been on supervised release since 2020 after serving a 77-month-term for being a felon in possession of a firearm. As a convicted felon, he is prohibited from possessing a firearm or ammunition per federal law.
Jimenez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Corpus Christi Police Department’s Gang Unit. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.
Pharr woman sentenced for trafficking cocaine with husband and othersRead the Press Release
VICTORIA, Texas – A 47-year-old South Texan has been ordered to prison after admitting to trafficking cocaine from Hidalgo County to other states across the country, announced U.S. Attorney Alamdar S. Hamdani.
Idalia Guzman pleaded guilty Feb. 6, 2019.
Today, Senior U.S. District Judge John D. Rainey imposed a 96-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional testimony from the prison ministries representative and learned that Guzman had received a theology degree while awaiting sentencing.
The narcotics investigation began in 2017 which led to the discovery that a group was planning to smuggle an undetermined amount of cocaine from Hidalgo County past the Falfurrias Border Patrol checkpoint.
Authorities stopped a vehicle Guzman was driving in Premont. Her husband Victor Del Toro, Pharr, was the passenger. Law enforcement found approximately a half kilogram of cocaine concealed in the vehicle.
Further investigation revealed the Texas Chicano Brotherhood was responsible for smuggling 10 similar size loads of cocaine to San Diego, Texas, and the states of Michigan and Florida.
At the time of her plea, Guzman admitted her involvement and acknowledged she had transported over 10 times in the same manner.
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.
Del Toro was sentenced in 2019 to 120 months incarceration.
Homeland Security Investigations conducted the investigation along with the Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms and Explosives; District Attorney Offices in Starr County and Hidalgo Counties and Texas Office of the Attorney General. Assistant U.S. Attorneys Patti Hubert Booth and David Paxton prosecuted the case.
Hebbronville resident admits to smuggling over a million in cocaineRead the Press Release
CORPUS CHRISTI, Texas - A 63-year-old man has pleaded guilty to possession with intent to distribute approximately 16 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
On Sept. 7, 2022, Ascencion Garza Jr. drove his truck into the primary inspection lane of a Border patrol (BP) checkpoint located near Falfurrias. There, authorities searched his vehicle and discovered 15 bricks of cocaine in concealed compartments within the rear quarter-panels.
The drugs weighed approximately 16 kilograms and have an estimated street value of more than $1.1 million.
U.S. District Judge Nelva Gonzalez Ramos will impose sentencing April 11. At that time, Garza faces up to life in federal prison and a possible $10 million maximum fine.
Garza has been and will remain in custody pending that hearing.
Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Tyler Foster is prosecuting the case.
Texas man convicted of armed bank robbery during violent crime spree that left one deadRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Corpus Christi man is facing life in prison after robbing a bank during a 45-minute crime spree that left one person dead and another seriously injured, announced U.S. Attorney Alamdar S. Hamdani.
Anthony Dwayne Carrington pleaded guilty to one count of bank robbery and one count of brandishing a firearm during the commission of a crime of violence.
On Aug. 8, 2022, Carrington entered the American Bank – Corpus Christi South branch on South Padre Island Drive in Corpus Christi. He approached the teller station while holding a silver pistol in his hand, pointed it directly at a bank employee and demanded he give Carrington all the money from the drawer. Carrington further warned the employee not to press the alarm or make a scene. Fearing for his life, the teller complied with Carrington’s demands.
Further investigation revealed two shootings that occurred a short distance from the bank within 45 minutes of the robbery - an attempted murder in a private residence and a homicide at P.F. Chang’s restaurant.
Carrington was an employee at that restaurant and matched the description of both shooters.
Law enforcement conducted a traffic stop later the same day, identified Carrington and took him into custody. Carrington had discarded the firearm used during the robbery and both shootings. Authorities also recovered it from an empty grass lot.
Carrington ultimately admitted to shooting the individual at the private residence, shooting a co-worker at P.F. Chang’s, robbing American Bank and being in possession of the firearm despite being a previously convicted felon.
U.S. District Judge David S. Morales will impose sentencing March 29. At that time, Carrington faces up to 25 years for the robbery as well as another seven years to life for the firearms charge which must be served consecutively to any other prison term imposed.
Carrington has been and will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney John Marck is prosecuting the case.
South Texan sent to prison for concealing meth under clothingRead the Press Release
McALLEN, Texas – A 42-year-old Raymondville man has been ordered to federal prison for drug trafficking, announced U.S. Attorney Alamdar S. Hamdani.
Ricardo Garcia Jr. pleaded guilty July 29, 2022, admitting he imported three kilograms of meth into the United States from Mexico.
Today, U.S. District Judge Randy Crane ordered him to serve a 120-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard about Garcia’s various gang affiliations before imposing the sentence. Judge Crane noted Garcia was not in a leadership position of control within a drug trafficking organization, but did transport narcotics into the United States.
On May 18, 2022, Garcia attempted to make entry into the United States through the Hidalgo Port of Entry. During inspection, Garcia changed his story several times regarding his purpose of entering the country. A narcotics K-9 alerted to the vehicle and to Garcia himself.
Law enforcement referred him to secondary inspection where they soon found 12 packages of meth concealed under his clothing and inside of his boots. Lab results indicated the meth had a purity level of 95%.
Garcia subsequently admitted he was importing the meth from Mexico into the United States and was to be paid $2,000 for delivery of the drugs to McAllen.
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. Assistant U.S. Attorney Devin V. Walker prosecuted the case.
Mexican citizen admits to concealing drugs near vehicle consoleRead the Press Release
LAREDO, Texas – A 23-year-old man from Monterrey, Mexico, has pleaded guilty to conspiring to possess with intent to distribute 6.15 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
On Oct. 2, 2022, Luis Carlos Rodriguez-Elizondo attempted to drive through the Lincoln Juarez Port of Entry in Laredo. At that time, he told authorities he was visiting Six Flags and planned an overnight trip. However, he did not have luggage and did not have a believable travel itinerary.
An X-ray scan also revealed anomalies near the center console of his vehicle. Upon further inspection, law enforcement discovered several bundles containing cocaine.
The drugs had an estimated street value of $150,000.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing April 11. At that time, Rodriguez0-Elizondo faces up to life in prison and a possible $10 million maximum fine.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Matthew Isaac and Michael Makens are prosecuting the case.
High speed rollover lands Texan in federal prisonRead the Press Release
McALLEN, Texas – A 22-year-old Roma man has been ordered to federal prison following his conviction of conspiracy to transport undocumented aliens resulting in serious bodily injury, announced U.S. Attorney Alamdar S. Hamdani.
Orlando Gonzalez pleaded guilty Aug. 1, 2022.
Today, Chief U.S. District Judge Randy Crane sentenced Gonzalez to serve 72 months in federal prison followed by three years supervised release. The court found Gonzalez’s actions to be a danger to the community, noting he led law enforcement agents on a 100 mph high speed chase which resulted in a tragic rollover. Several individuals suffered life altering injuries.
In May 20, 2022, law enforcement learned that several undocumented aliens had entered a blue GMC near Fronton. As authorities arrived on scene, Gonzalez began to drive the vehicle at a high rate of speed veering on and off the main roadway. In that process, he struck one of the responding law enforcement vehicles.
Gonzalez continued to drive at a high rate of speed until he struck a utility pole which caused the vehicle to roll over multiple times, coming to rest in a local church parking lot. Two of the three undocumented aliens who were in the vehicle were ejected approximately 50ft in the air. One suffered a traumatic brain injury and was placed on life support.
At the time of the incident, Gonzalez was on supervised release from a 2020 human trafficking conviction.
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 the Border Patrol and the Texas Department of Public Safety. Assistant U.S. Attorney Eric D. Flores prosecuted the case.
Fourth sentenced in government impersonation call center scamRead the Press Release
HOUSTON – A 28-year-old Indian citizen who illegally resided in the United States has received his sentence following his conviction of conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Moin Idrishbhai Pinjara pleaded guilty Nov. 30, 2021.
Today, U.S. District Judge Andrew S. Hanen imposed a 29-month sentence. Not a U.S. citizen, Pinjara is expected to face removal proceedings following his imprisonment. The court further ordered him to pay $635,103 in restitution to the victims of the conspiracy.
Between December 2019 and July 2020, Pinjara was a “runner” in an Indian-based call center scam. Callers in India would contact potential victims in the United States to extort money from them. Pinjara would then use aliases and fake identification documents to pick up parcels containing cash which the victims had mailed.
One common script used in the schemes involved coercing victims into believing federal agents were investigating them. The “agent” on the phone would convince the victim the only way to clear his or her name from investigation was to send cash in a parcel package shipped through FedEx to a name and address they provided. Runners like Pinjara in the United States would then pick up the parcels.
Throughout the course of the investigation, law enforcement identified hundreds of victims of this scheme, with total losses exceeding millions of dollars.
The Social Security Administration (SSA) consistently warns people of similar scams and encourages citizens to protect themselves.
Prior to Pinjara’s sentencing today, three other runners had been sentenced in Houston for their involvement in the same conspiracy. Viral Gandhi and Burhan Syed, both 33 and Indian citizens illegally residing in the United States, received 27 and 41 months, respectively. Myisha Carter, 33, Houston, was ordered to serve a 71-month sentence to be immediately followed by three years of supervised release. All must also pay restitution.
The SSA - Office of Inspector General (OIG), FBI and the Department of Homeland Security – OIG conducted the investigation with the assistance of the Houston Police Department and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney (AUSA) Stephanie Bauman and Special AUSA Benjamin Sandel prosecuted the cases.
Podiatrist pays $90,000 to settle false billing allegationsRead the Press Release
HOUSTON – A 39-year-old Cypress man has agreed to pay to resolve allegations he submitted false claims for the placement of electro-acupuncture devices, announced U.S. Attorney Alamdar S. Hamdani.
Dr. Amr El-Khashab is a podiatrist who practices in Cypress and whom podiatrist Dr. Judith Rubin previously employed. From March 1, 2018, to Nov. 30, 2019, El-Khashab and Rubin billed Medicare for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring use of an operating room. Medicare pays thousands of dollars per procedure.
However, neither Rubin nor El-Khashab performed these surgical procedures. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind them with an adhesive.
Rubin previously entered into an $865,000 settlement to address these allegations.
To date, this is the ninth case the Southern District of Texas has resolved for similar conduct. The other matters included settlements with a Katy anesthesiologist, Houston pain doctor, Rockport chiropractor, Houston chiropractor, Laredo pain doctor, The Woodlands pain doctor and Cypress marketing representative.
The U.S. Attorney’s Office conducted the investigation with the Department of Health and Human Services – Office of Inspector General and Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Six sent to prison after traffic stops yield kilos of methRead the Press Release
CORPUS CHRISTI – The final member of a of a Corpus Christi drug trafficking organization has been ordered to federal prison following his conviction of conspiracy to possess with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Jesse Soliz, 40, Joshua Cadena, 30, Matthew Cadena, 34, all of Corpus Christi, and Luis Reyes-Camacho, 36, a citizen of Mexico unlawfully in the United States, pleaded guilty July 22, 2021, while Yvette Hernandez, 39, and Julio Rodriguez, 52, also of Corpus Christi, entered their pleas Sept. 24, 2021, and March 23, 2022, respectively.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Matthew Cadena to a 135-month sentence to be immediately followed by five years of supervised release. At the hearing, the court noted the significant quantity of drugs involved and roles Matthew and Joshua Cadena held as mid-level distributors who worked under Soliz.
Judge Ramos previously sentenced the other four for their respective involvement in the conspiracy. Notably, Luis Reyes-Camacho, who was identified as the supplier of the illegal drugs, and Jesse Soliz, who managed the local distribution network, received 324 months and 235 months, respectively.
In March 2020, law enforcement initiated an investigation into a drug trafficking operation in the Corpus Christi area involving meth and heroin. This resulted in the identification and arrest of multiple individuals ranging from street level dealers to mid-level suppliers.
On April 10, 2020, authorities conducted a traffic stop and identified Matthew Cadena and Hernandez as the driver and passenger, respectively. Because Cadena did not have a valid driver’s license, Cadena was arrested and his vehicle impounded. Inside the car, they discovered approximately 60 grams of meth the center console.
In January 2021, law enforcement learned Jesse Soliz, Joshua Cadena, Matthew Cadena and their associates were going to receive a large shipment of illegal narcotics, believed to be meth and heroin, from an unknown individual that resided outside of the Corpus Christi area. Upon surveilling Soliz’s residence, law enforcement observed Luis Reyes-Camacho arrive in a vehicle. Soliz walked out of the garage as Reyes-Camacho retrieved a large bag from the vehicle. Both then entered the residence. A short time later, several individuals exited the garage and drove away in multiple vehicles.
Law enforcement stopped Rodriguez and Joshua Cadena in a vehicle in which they later found two clear baggies containing approximately 60 grams of meth. During a simultaneous stop, a K-9 alerted to the front engine of a vehicle in which Reyes-Camacho was driving. Soliz was the passenger. A subsequent search resulted in the discovery of two kilograms of meth.
Authorities also discovered an additional three kilograms of meth in the residence of Soliz as well as a kilogram of heroin, approximately $26,000, a Sig Sauer 9mm pistol and ammunition.
Matthew Cadena has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation Smoke’M Out with the assistance of Texas Department of Public Safety and the Corpus Christi Police Department. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Lance Watt prosecuted the case.
Suburban Houston man sentenced for sex trafficking minorsRead the Press Release
HOUSTON – A 26-year-old Richwood resident has been ordered to federal prison for forcing teenagers to engage in commercial sex, announced U.S. Attorney Alamdar S. Hamdani.
Charlie James Jones pleaded guilty Nov. 26.
Today, U.S. District Judge George C. Hanks sentenced him to a total 190-month-term of imprisonment. At the hearing, the court heard that in addition to the girl he pleaded guilty to trafficking, he also caused several other minors to engage in commercial sex. In handing down the prison term, the court noted that Jones had a manipulative personality both emotionally and physically and that what he did was horrific. Jones was further ordered to pay $7,200 in restitution to the victim and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Jones will also be ordered to register as a sex offender.
Jones pleaded guilty to trafficking one girl in and around Angleton in July 2015, but also admitted to doing the same to another minor.
On one occasion, he had taken the girls, then ages 16 and 17, to a local motel. He photographed the minors in thong underwear and posted the images online in ads promoting them for commercial sex.
Over the course of several subsequent weekends, Jones forced the younger victim to engage in commercial sex and took all the proceeds. If she resisted, Jones became violent with her by grabbing her throat and pulling her hair. He also forced himself on her sexually.
The other female was allegedly Jones’ girlfriend. However, he also made her engage in commercial sex and was seen committing acts of violence against her.
Jones has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Sherri L. Zack prosecuted the case.
RGV tax preparer sent to prison for preparing false tax returnsRead the Press Release
McALLEN, Texas – A local tax preparer has been ordered to federal prison following her conviction of preparing false and fraudulent tax returns on behalf of taxpayers, announced U.S. Attorney Alamdar S. Hamdani.
Linda Lopez pleaded guilty April 7.
Today, U.S. District Judge Micaela Alvarez ordered Lopez to serve the statutory maximum of 36 months in federal prison to be immediately followed by one year of supervised release. Judge Alvarez noted that she was imposing the maximum sentence allowed under the statute because of the lengthy duration of the tax fraud scheme Lopez perpetrated through her tax preparation business.
“The IRS entrusted Lopez to prepare and electronically file accurate returns for her clients. She violated that trust with the IRS, her clients and the citizens of the United States by instead submitting false tax returns. As we approach the tax filing season, those tax preparers considering preparing false tax returns should know of the extremely negative consequences as evidenced in today’s sentencing,” said Special Agent in Charge Ramsey E. Covington of IRS-Criminal investigation (IRS-CI) - Houston Field Office. “The special agents within IRS-CI, as well as the U.S. Attorney’s office, will continue their aggressive pursuit of those who would attempt to defraud the U.S. tax system."
Lopez was the owner and operator of a tax preparation business known as Premier Tax Solutions which operated from 2012 through 2022 in and around Mission.
At the time of her plea, Lopez admitted that she prepared a federal tax return for a taxpayer that included multiple instances of false and fraudulent information, including false employee business expenses and false residential energy credit qualifying expenses.
She also agreed to a loss amount that included a tax loss to the IRS related to several fraudulent tax returns she prepared.
Lopez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-CI conducted the investigation. Assistant U.S. Attorney Andrew Swartz prosecuted the case.
Honeywell UOP to pay over $160M to resolve foreign bribery investigations in U.S. and BrazilRead the Press Release
HOUSTON – UOP LLC, dba as Honeywell UOP, a U.S.-based subsidiary of Honeywell International Inc., has agreed to pay more than $160 million to resolve parallel bribery investigations by criminal and civil authorities in the United States and Brazil stemming from bribe payments offered to a high-ranking official at Brazil’s state-owned oil company.
The U.S. Department of Justice’s resolution is coordinated with prosecutorial authorities in Brazil as well as the U.S. Securities and Exchange Commission (SEC).
According to court documents, Honeywell UOP entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Southern District of Texas charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).
According to the company’s admissions and court documents, between 2010 and 2014, Honeywell UOP conspired to offer an approximately $4 million bribe to a then-high-ranking executive of Petróleo Brasileiro S.A (Petrobras) in Brazil. Specifically, Honeywell UOP offered the bribe to secure improper advantages in order to obtain and retain business from Petrobras in connection with Honeywell UOP’s efforts to win an approximately $425 million contract from Petrobras to design and build an oil refinery called Premium.
“This case exemplifies corporate misconduct on a global level,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Prosecuting and investigating this type of crime is an important role our office takes seriously in order to ensure fair and equal playing fields for U.S. companies and consumers. We will continue our efforts to aggressively investigate and prosecute those who violate the FCPA and combat corrupt practices in order to preserve the integrity of our nation’s business dealings here and abroad.”
According to court documents, in order to effectuate the bribery scheme, Honeywell UOP entered into an agency agreement with a sales agent for the purpose of funding and paying the $4 million bribe to the high-ranking Petrobras executive. In exchange for the bribe, and after obtaining business advantages including inside information and secret assistance from the Petrobras executive, Honeywell UOP won the contract. Honeywell UOP earned approximately $105.5 million in profits from the corruptly obtained business.
“Honeywell UOP offered to pay millions of dollars in bribes to a high-ranking executive at Brazil’s state-owned oil company to win a lucrative contract,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s resolution once again demonstrates that in our relentless fight against corruption, the Department of Justice will work together with our partners, both domestic and foreign, to hold companies accountable for their criminal conduct.”
Pursuant to the DPA, Honeywell UOP will pay a criminal penalty of approximately $79 million. The department has agreed to credit up to approximately $39.6 million of that criminal penalty against amounts the company has agreed to pay to authorities in Brazil in connection with related proceedings to resolve an investigation by the Controladoria-Geral da União (CGU), the Ministério Público Federal (MPF) and the Advocacia-Geral de União (Attorney General’s Office). In addition, Honeywell UOP will pay approximately $81 million in disgorgement and prejudgment interest as part of the resolution of a parallel investigation by the SEC.
“Honeywell UOP conspired to bribe a high-ranking official at Petrobras to win a contract from the company, effectively stifling competition,” said Acting Assistant Director in Charge Michael H. Glasheen of the FBI Washington Field Office. “Bribery schemes like this one transcend borders, and collaboration with our foreign partners is crucial to the fight against international corruption. The resolution announced today demonstrates the FBI's commitment to leveling the playing field across the global marketplace."
“Money is the center of the criminal world and this company became a part of that world when it failed to adhere to national and international laws,” said Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (CI) Houston Field Office. “It did not live up to the trust placed on it by both the public and its shareholders. In situations like this, IRS-CI will pursue criminal enterprises, regardless of where they operate. Our investigation in this case remains open and we are working with our law enforcement and prosecutorial partners to ensure that crime doesn’t pay.”
As part of the DPA, Honeywell UOP has agreed to continue to cooperate with the department in any ongoing or future criminal investigations relating to this conduct. In addition, under the agreement, Honeywell UOP and its parent company, Honeywell International Inc., agreed to continue to enhance its compliance program and provide reports to the department regarding the implementation of compliance measures for the term of the DPA.
The department reached this resolution with Honeywell UOP based on a number of factors, including, among others, the nature and seriousness of the offense. Honeywell UOP received full credit for its cooperation with the department’s investigation, which included, among other things, (i) proactively disclosing certain evidence of which the department was previously unaware; (ii) providing information obtained through its internal investigation, which allowed the department to preserve and obtain evidence as part of its own independent investigation; (iii) making detailed presentations to the department; (iv) voluntarily facilitating interviews of employees; and (v) collecting and producing voluminous relevant documents and translations to the department, including documents located outside the United States. The company promptly engaged in extensive remedial measures including, among other things, terminating and disciplining certain employees involved in the misconduct and strengthening its compliance program. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the bottom of the applicable guidelines fine range.
The FBI Washington Field Office and the IRS-CI Houston Field Office are investigating the case. Brazil’s MPF, CGU and AGU as well as the Justice Department’s Office of International Affairs provided substantial assistance in this matter.
Assistant U.S. Attorney Suzanne Elmilady for the Southern District of Texas and Assistant Chief Gerald M. Moody Jr. and Trial Attorney Gwendolyn Stamper of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting FCPA matters.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Honeywell UOP to Pay over $160 Million to Resolve Foreign Bribery Investigations in U.S. and BrazilRead the Press Release
UOP LLC, doing business as Honeywell UOP, a U.S.-based subsidiary of Honeywell International Inc., has agreed to pay more than $160 million to resolve parallel bribery investigations by criminal and civil authorities in the United States and Brazil stemming from bribe payments offered to a high-ranking official at Brazil’s state-owned oil company.
The U.S. Department of Justice’s resolution is coordinated with prosecutorial authorities in Brazil, as well as the U.S. Securities and Exchange Commission (SEC).
According to court documents, Honeywell UOP entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Southern District of Texas charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).
According to the company’s admissions and court documents, between 2010 and 2014, Honeywell UOP conspired to offer an approximately $4 million bribe to a then-high-ranking executive of Petróleo Brasileiro S.A (Petrobras) in Brazil. Specifically, Honeywell UOP offered the bribe to secure improper advantages in order to obtain and retain business from Petrobras in connection with Honeywell UOP’s efforts to win an approximately $425 million contract from Petrobras to design and build an oil refinery called Premium.
“Honeywell UOP offered to pay millions of dollars in bribes to a high-ranking executive at Brazil’s state-owned oil company to win a lucrative contract,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s resolution once again demonstrates that in our relentless fight against corruption, the Department of Justice will work together with our partners, both domestic and foreign, to hold companies accountable for their criminal conduct.”
According to court documents, in order to effectuate the bribery scheme, Honeywell UOP entered into an agency agreement with a sales agent for the purpose of funding and paying the $4 million bribe to the high-ranking Petrobras executive. In exchange for the bribe, and after obtaining business advantages, including inside information and secret assistance, from the Petrobras executive, Honeywell UOP won the contract. Honeywell UOP earned approximately $105.5 million in profits from the corruptly obtained business.
“This case exemplifies corporate misconduct on a global level,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Prosecuting and investigating this type of crime is an important role our office takes seriously in order to ensure fair and equal playing fields for U.S. companies and consumers. We will continue our efforts to aggressively investigate and prosecute those who violate the FCPA and combat corrupt practices in order to preserve the integrity of our nation’s business dealings here and abroad.”
Pursuant to the DPA, Honeywell UOP will pay a criminal penalty of approximately $79 million. The department has agreed to credit up to approximately $39.6 million of that criminal penalty against amounts the company has agreed to pay to authorities in Brazil in connection with related proceedings to resolve an investigation by the Controladoria-Geral da União (CGU), the Ministério Público Federal (MPF), and the Advocacia-Geral de União (Attorney General’s Office). In addition, Honeywell UOP will pay approximately $81 million in disgorgement and prejudgment interest as part of the resolution of a parallel investigation by the SEC.
“Honeywell UOP conspired to bribe a high-ranking official at Petrobras to win a contract from the company, effectively stifling competition,” said Acting Assistant Director in Charge Michael H. Glasheen of the FBI Washington Field Office. “Bribery schemes like this one transcend borders, and collaboration with our foreign partners is crucial to the fight against international corruption. The resolution announced today demonstrates the FBI's commitment to leveling the playing field across the global marketplace.”
“Money is the center of the criminal world, and this company became a part of that world when it failed to adhere to national and international laws,” said Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (CI) Houston Field Office. “It did not live up to the trust placed on it by both the public and its shareholders. In situations like this, IRS-CI will pursue criminal enterprises, regardless of where they operate. Our investigation in this case remains open and we are working with our law enforcement and prosecutorial partners to ensure that crime doesn’t pay.”
As part of the DPA, Honeywell UOP has agreed to continue to cooperate with the department in any ongoing or future criminal investigations relating to this conduct. In addition, under the agreement, Honeywell UOP and its parent company, Honeywell International Inc., agreed to continue to enhance its compliance program and provide reports to the department regarding the implementation of compliance measures for the term of the DPA.
The department reached this resolution with Honeywell UOP based on a number of factors, including, among others, the nature and seriousness of the offense. Honeywell UOP received full credit for its cooperation with the department’s investigation, which included, among other things, (i) proactively disclosing certain evidence of which the department was previously unaware; (ii) providing information obtained through its internal investigation, which allowed the department to preserve and obtain evidence as part of its own independent investigation; (iii) making detailed presentations to the department; (iv) voluntarily facilitating interviews of employees; and (v) collecting and producing voluminous relevant documents and translations to the department, including documents located outside the United States. The company promptly engaged in extensive remedial measures including, among other things, terminating and disciplining certain employees involved in the misconduct and strengthening its compliance program. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the bottom of the applicable guidelines fine range.
The FBI Washington Field Office and the IRS-CI Houston Field Office are investigating the case. Brazil’s MPF, CGU, and AGU, as well as the Justice Department’s Office of International Affairs, provided substantial assistance in this matter.
Assistant Chief Gerald M. Moody Jr. and Trial Attorney Gwendolyn Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady for the Southern District of Texas are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Several Houston men arrested for drug and firearm violationsRead the Press Release
HOUSTON – A total of 14 people are now in custody for various violations to include drug trafficking, possessing a “Glock switch” and being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Those taken into custody yesterday include Houston residents Anthony Ketchum, 35, Anthony Yezeno-Hopkins, 38, Brandon Milson, 32, Hassani Mills, 34, Jaylyn Pinson, 29, Josue Rodriguez, 32, Keith Moore, 34, Michael Henry, 32, Myles Smith, 23, Robert Thomas, 29, Sterling Brumant, 26, Titus Baisey, 35 and Toree White, 27.
Henry, Baisey and Smith are expected to make their initial appearances at 2 p.m. today before U.S. Magistrate Judge Christina Bryan. Brumant was arrested in California and ordered detained pending further criminal proceedings.
Also charged is Julian Herrera, 26, was previously in custody on related charges. He made his appearance yesterday in Houston along with the other nine men.
Detention hearings are set to begin Dec. 19 at 9 a.m.
A federal grand jury returned the 11-count indictment Dec. 7.
With the exception of Thomas and Rodriguez, the remaining men are charged with possession with intent to deliver meth. They face up to life in prison and could be ordered to pay fines up to $10 million. Moore faces an additional charge of possession with intent to deliver heroin which carries a maximum of 40 years in prison.
The indictment also alleges Thomas unlawfully possessed a firearm - a device made and intended to convert a semi-automatic pistol to being fully automatic aka Glock auto switch. If convicted, he faces a 10-year possible sentence.
Rodriguez is alleged to have been in possession of a firearm - Ruger 5.7 mm. As a convicted felon, he is prohibited from federal law of such and could also be sentenced to a maximum of 10 years if found guilty.
The arrests come on the heels of another case involving violent crime as well as a joint announcement on the surge of resources to fight violent crime in Houston.
The FBI and Houston Police Department conducted the investigation.
Assistant U.S. Attorney Lisa Collins 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.Local man sentenced for carjacking and gun crimeRead the Press Release
HOUSTON – A 20-year-old Houston man has been ordered to federal prison following his conviction of one count of carjacking and one count of discharging a firearm during a crime of violence, announced U.S. Attorney Alamdar S. Hamdani.
Keiffer Frederick Edwards pleaded guilty Sept. 23.
Today, U.S. District Judge Keith Ellison ordered Edwards to serve 71 months for the carjacking. He also received 120 months for the discharging of a firearm offense which must be served consecutively to the underlying carjacking offense. The total 191-month sentence will be immediately followed by five years of supervised release.
On April 28, the victim drove his vehicle to a gas station located at 407 Farm to Market Road 1960 in Houston. While in the parking lot, Edwards approached and attempted to enter the driver’s door of the victim’s vehicle. After a brief struggle, Edwards shot the victim several times, fled the scene in the victim’s vehicle. Law enforcement apprehended him a short time later.
The victim was reported to have 18 gunshot wounds, but medical personnel treated him, and he survived his injuries.
Edwards has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Harris County Sheriff’s Office, Mont Belvieu and Houston Police Departments and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney John Michael Lewis is prosecuting the case.
Former federal agent receives sentence for corruption in connection to illicit Syrian relationshipRead the Press Release
HOUSTON –A 49-year-old former special agent with Naval Criminal Investigative Service (NCIS) has been sent to prison following her conviction of obstructing justice, making false statements and accepting money and gifts for official acts, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury sitting in Houston convicted Leatrice Malika DeBruhl-Daniels June 13, following a six-day trial.
Today, U.S. District Judge Gray Miller ordered DeBruhl-Daniels to serve 108 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, the court cited DeBruhl’s breach of trust and deterrence.
“Leatrice DeBruhl-Daniels betrayed her badge and our country by revealing sensitive and classified information to the target of an FBI counterterrorism investigation in exchange for money, gifts and affection,” said NCIS Director Omar Lopez. “Holding her accountable will make it clear that NCIS will not tolerate corruption within our ranks.”
DeBruhl-Daniels was a veteran NCIS special agent working in Dubai, United Arab Emirates. There, she met Nadal Diya, a Syrian businessman living in Dubai looking for help in securing a visa to the United States. At that time, Diya was the target of several federal investigations.
At trial, the jury heard from 16 government witnesses, which included numerous agents and Diya himself. Testimony revealed that in 2017, DeBruhl-Daniels used her position to get certain benefits from Diya in exchange for providing information to him about his visa status. The gifts included an expensive birthday party at Diya’s home, approximately $1,400 in cash and the promise of a job for her son in Diya’s company.
The relationship with Diya eventually became sexual. During that relationship, she revealed he was a target of an FBI counterterrorism investigation, information that was classified at the time. She also told him that if he came to the United States, he would likely be arrested.
In late December 2017, federal agents had questioned Debruhl-Daniels about Diya. However, she failed to disclose her intimate relationship with him, the gifts he had given her, the job he offered her son and the classified information she provided.
Following the interview, she also visited with Diya and coached him on what to say in a subsequent interview.
Several months later in May 2018, she left Dubai for Hawaii for a highly sensitive and coveted job. However, she soon learned she would not get the new position. It was only then she confessed to superiors and investigators about her illicit relationship, the monies, party and gifts she had received and the classified information she had previously revealed.
Debruhl-Daniels testified in her own defense at trial. She claimed, among other things, that the classified information she revealed to Diya was public information. She further attempted to convince the jury she did not have a duty to reveal any of the details of her personal relationship with Diya nor her disclosures to him.
The jury did not believe her claims and found her guilty.
Diya, 50, of Dubai, was previously sentenced and has been removed from the United States.
Debruhl-Daniels will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
NCIS led the investigation with the assistance of the FBI, Homeland Security Investigations, Department of Commerce, Department of State and the Defense Criminal Investigative Service. U.S. Attorney Alamdar S. Hamdani and Assistant United States Attorney Arthur R. Jones prosecuted the case.
First person referred from new anti-gang center ordered to prisonRead the Press Release
LAREDO, Texas – A 51-year-old Laredo resident has been sentenced for illegal firearms possession, announced U.S. Attorney Alamdar S. Hamdani.
Hector Agustin Esparza pleaded guilty Sept. 12.
Today, U.S. District Judge Diana Saldana ordered him to serve the statutory maximum of 10 years in federal prison to be immediately followed by three years of supervised release. In imposing the sentence, she noted that what Esparza did was very dangerous and that he could have killed members of law enforcement.
On June 15, law enforcement responded to a “be-on-the-lookout” for a car in relation to a burglary call, located it and attempted to conduct a traffic stop. Esparza was driving and refused to stop. A chase soon ensued through several Laredo streets and parking lots.
At one point, he pulled into a Sam’s Club parking lot and stopped. However, Esparza then fired at authorities and then fled again. He disregarded a traffic light and ultimately collided with another vehicle.
Law enforcement took him into custody, at which time they recovered a .40 caliber pistol from the car.
Esparza admitted to being the shooter during the police chase and claimed to be an ex-Mexican Mafia gang member. Esparza admitted he had recently been released from prison after serving four years for an aggravated robbery. A criminal records check confirmed that Esparza had seven prior felony convictions and was also under indictment at the time.
As a convicted felon, he is prohibited from possessing a firearm per federal law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted investigation as part of the Texas Anti-Gang Center (TAG) Program with the assistance of the Laredo Police Department. The Laredo TAG became operational in mid-2022, and Esparza was the first person referred for federal prosecution. Nine other cases charging 14 others with drug and firearm charges are pending trial or sentencing in federal court.
These such cooperative matters provide for the establishment of permanent multi-agency teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to combat the shared threat of criminal organization operating in Laredo and surrounding area. Additional information about the TAG Program can be found on the www.stoplaredogangs.org website.
Young Laredoan admits to transporting fentanyl disguised as oxycodoneRead the Press Release
LAREDO, Texas – A 19 year-old Laredo resident has entered a guilty plea to transporting approximately 1.42 kilograms of fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
Ivan Eleodoro Garcia admitted that on Sept. 29, he was driving a 2014 Ford Taurus sedan and stopped for an immigration inspection at the I-35 Border Patrol checkpoint north of Laredo. There, a K-9 positively indicated to concealed humans or narcotics in the rear of the vehicle.
Further investigation led to the discovery of a custom installed hidden compartment between the trunk and passenger area of the sedan where authorities found 13 bags containing 1.42 kg. of blue pills. They initially believed the pills were oxycodone hydrocholoride due to an embossed “M” on each pill. However, a field test later revealed the pills were counterfeit and contained fentanyl.
Garcia has been and will remain in custody pending his sentencing at a later date before U.S. District Judge Diana Saldana. At that time, Garcia faces a minimum of 10 years and up life in prison as well as a possible $10 million maximum fine.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
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Violent felon sentenced for illegal firearms conviction following shootingRead the Press Release
CORPUS CHRISTI, Texas – A 48-year-old Aransas Pass resident has been ordered to federal prison for possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Kenny Don Jones pleaded guilty Sept. 21.
Today, U.S. District Judge Drew B. Tipton handed Jones a sentence of 90 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Jones changed his story with investigators about the shooting over the course of two interviews. In handing down the sentence, the court noted his significant criminal history, including a previous murder conviction and convictions for shooting two other individuals.
On July 20, 2021, authorities learned of a suspicious death. They traveled to the scene and met with the property owner where they found a deceased male subject on the property with a single casing from a discharged round near him in a milk crate.
Jones was also present and eventually reported that the firearm was his and that the deceased male had taken the firearm from his bag and pointed it at him. Jones claimed he he wrestled the firearm away from him and took a step back with the gun in hand. According to Jones, the victim lunged at him and Jones fired a round that struck the victim in between the eyes.
Following the shooting, Jones drove to Rockport where he threw the .9mm Smith & Wesson pistol out of his vehicle. He said he knew he was not supposed to have guns.
Law enforcement later obtained the gun Jones described.
Jones has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol Tobacco Firearms & Explosives conducted the investigation with the assistance of the Aransas Pass Police Department. Assistant U.S. Attorney Joel Dunn prosecuted the case.
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Trafficker sentenced for distributing more than 500 grams of methRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Three Rivers resident has been ordered to federal prison for distributing more than 500 grams of methamphetamine announced U.S. Attorney Alamdar S. Hamdani.
Roger Lee Martinez pleaded guilty June 1.
Today, U.S. District Judge Drew B. Tipton ordered him to serve 120 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Martinez had waived his right to appeal.
The investigation revealed that Martinez had distributed sold varying amounts of meth between Jan. 1, 2018, and July 29, 2020. On some of those occasions, he conducted his criminal activity from a hotel room in Three Rivers.
On Aug. 11, 2020, law enforcement conducted a search at that location which resulted in the discovery of 141.5 grams of meth in a neighboring room inside an air conditioner frame.
Following his arrest, Martinez admitted he had sold up to 45 ounces of meth per month beginning in 2018.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prison facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety and the Live Oak County Sheriff’s Office. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
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South Texan sentenced for trafficking cocaineRead the Press Release
CORPUS CHRISTI, Texas – A 27-year-old Brownsville man has been ordered to prison for attempting to transport cocaine through a Border Patrol checkpoint, announced U.S. Attorney Alamdar S. Hamdani.
Jonathan Martinez pleaded guilty Oct. 6, 2021.
Today, U.S. District Judge Drew B. Tipton ordered him to serve 24 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that Martinez “really jumped into the deep end” when he committed this offense, as he had no criminal history.
On Oct. 19, 2020, Martinez arrived at the Border Patrol checkpoint located near Sarita. A K-9 alerted to his vehicle, at which time authorities referred him to secondary inspection.
A further search of his vehicle revealed three bundles of cocaine hidden in an aftermarket metal box and the computer module. They had a combined weight of 2.98 kilograms and have an estimated street value of $75,000.
Martinez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
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Eight men indicted for $114 million securities fraud scheme orchestrated through social mediaRead the Press Release
HOUSTON - A federal grand jury in the Southern District of Texas returned an indictment that was unsealed yesterday charging eight men with conspiracy to commit securities fraud for a long-running, social media-based “pump and dump” scheme.
Those indicted include Edward Constantinescu aka Constantin 38, of Montgomery; Perry “PJ” Matlock, 38, of The Woodlands; John Rybarczyk, 32, of Spring; Dan Knight, 23, of Houston; along with Gary Deel, 28, and Tom Cooperman, 34, both of Beverly Hills, California; Stefan Hrvatin, 35, of Miami, Florida; and Mitchell Hennessey, 23, of Hoboken, New Jersey. According to court documents, they allegedly engaged in a wide-ranging securities fraud conspiracy in which the they used their extensive social media presence on Twitter and Discord to hype interest in particular securities by posting false and misleading information in order to “pump” the prices of those securities, while concealing their intent to later “dump” their shares by selling them at the artificially inflated prices. From in or around January 2020 to in or around April 2022, the defendants allegedly profited at least approximately $114 million from their scheme.
“Securities fraud victimizes innocent investors and undermines the integrity of our public markets,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “As these charges demonstrate, the department will continue to prosecute those who defraud investors by spreading false and misleading information, including over social media, to line their own pockets.”
According to the indictment, the defendants collectively had over 1.5 million followers on Twitter to whom they allegedly disseminated false and misleading information about the securities that they pumped and dumped as part of the charged scheme. In addition to their Twitter presence, the defendants also allegedly ran an online community for individual stock traders called Atlas Trading, which defendants promoted as one of the largest, free online communities in the world for individual stock traders and which had a chatroom called Atlas Trading Discord. The defendants also allegedly used Atlas Trading Discord to disseminate false and misleading information about securities that they pumped and dumped as part of the charged scheme.
“We are committed to protecting the investing public from market manipulation schemes, regardless of how they are carried out,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As some use advances in technology and social media to prey upon the public, our office will be on the cutting edge of prosecuting this area of fraud.”
According to the indictment, the defendants allegedly used the following aliases on Twitter and Discord to perpetuate the scheme:
Defendant
Twitter Handle
Discord Handle
Edward Constantinescu
@MrZackMorris
Zack Morris#0001
Perry “PJ” Matlock
@PJ_Matlock
PJ Matlock#0001
John Rybarczyk
@Ultra_Calls
Ultra#0374
Gary Deel
@notoriousalerts
Mystic Mac [Clover emoji] #7345
Stefan Hrvatin
@LadeBackk
Lade Backk#6083
Tom Cooperman
@ohheytommy
TOMMY COOPS #5323
Mitchell Hennessey
@Hugh_Henne
HOODHUGHBEAR [Bear emoji] #4034
Daniel Knight
@DipDeity
Dan, Deity of Dips#8114
As further alleged in the indictment, the defendants used their social media credibility to maximize their own profits at the expense of their followers, holding themselves out as skilled stock traders by posting pictures showcasing their profits and extravagant lifestyles and encouraging people to follow them on social media in order to share in their financial gains.
“Corporate fraud remains a priority for the FBI as it victimizes investors and erodes public confidence in the securities markets,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners remain committed to identifying, investigating and pursuing those who seek to undermine the U.S. financial market and investors.”
All defendants are charged with one count of conspiracy to commit securities fraud. Additionally, Constantin is charged with three counts of securities fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity; Matlock and Deel are both charged with five counts of securities fraud; Rybarczyk is charged with four counts of securities fraud; and Hrvatin, Cooperman and Hennessey are each charged with two counts of securities fraud.
The defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 25 years in prison for conspiracy to commit securities fraud and each charged count of securities fraud. Constantin also faces a maximum penalty of 10 years in prison if convicted of engaging in unlawful monetary transactions.
The FBI Houston Field Office is investigating the case.
SDTX Assistant U.S. Attorney Thomas “Heyward” Carter III and Assistant Chief Scott Armstrong and Trial Attorney John J. Liolos of the Criminal Division’s Fraud are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. You are also encouraged to visit our webpage for this case at https://www.justice.gov/criminal-vns/case/united-states-v-constantinescu-et-al.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.