Southern District of Texas
Press releases recorded for this federal judicial district.
Eight Men Indicted for $114 Million Securities Fraud Scheme Orchestrated Through Social MediaRead the Press Release
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.
According to court documents, Edward Constantinescu, aka Constantin, 38, of Montgomery, Texas; Perry “PJ” Matlock, 38, of The Woodlands, Texas; John Rybarczyk, 32, of Spring, Texas; Gary Deel, 28, of Beverly Hills, California; Stefan Hrvatin, 35, of Miami, Florida; Tom Cooperman, 34, of Beverly Hills, California; Mitchell Hennessey, 23, of Hoboken, New Jersey; and, Dan Knight, 23, of Houston, Texas, allegedly engaged in a wide-ranging securities fraud conspiracy in which the defendants 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 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. “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 [emoji of four-leaf clover]#7345
Stefan Hrvatin
@LadeBackk
Lade Backk#6083
Tom Cooperman
@ohheytommy
TOMMY COOPS #5323
Mitchell Hennessey
@Hugh_Henne
HOODHUGHBEAR[emoji of an ox]#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.”
"Financial crimes like securities fraud may not be violent, but they certainly are not victimless," said Special Agent in Charge James Smith. "The eight individuals arrested today are accused of costing investors, specifically their social media followers who trusted them, millions of dollars by a ‘pump and dump’ market manipulation scheme they allegedly carried out on popular social media platforms. As the lead agency investigating corporate fraud, the FBI was able to uncover their alleged manipulative activity and expose their coordinated pattern of securities fraud."
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. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Houston Field Office is investigating the case.
Assistant Chief Scott Armstrong and Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas “Heyward” Carter III for the Southern District of Texas 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.
Walker County Man admits to cyberstalking via social mediaRead the Press Release
HOUSTON – A 25-year-old Huntsville resident has pleaded guilty to receiving child pornography as well as multiple counts of cyberstalking, announced U.S. Attorney Alamdar S. Hamdani.
Kody Nicholas Bohac stalked an out-of-state woman over social media and threatened to post nude photographs of her on the internet if she did not contact him. She did not respond. Subsequently, Bohac posted the images on the internet.
At the hearing, Bohac admitted to the stalking through social media and sending her nude images of herself and threatening to make them public if she did not contact him. He also said he offered to pay multiple females online for nude photos. When they complied, he refused to pay, demanded additional nude photos and threatened to post them online if they did not contact him.
He ultimately admitted to stalking approximately 20 females on social media, demanding they send additional nude photos, wanting to meet them in person and to call him “daddy.” When they refused, he posted the already obtained nude photos online, threatened to ruin their lives, sent photos to their school, families and friends and created fake online accounts using their names with sexually explicit references.
The investigation revealed multiple social media messages on his phone in which Bohac stalked numerous victims. They also found images and videos of child pornography on his cell phone which depicted minor females engaged in sexual acts on adult males.
“The individual behind this cyberstalking case was well-versed in social media. He not only stalked and terrorized his young victims through social media platforms, but he also victimized them even further by threatening to send compromising content of them to their family and friends,” said Special Agent in Charge James Smith of the FBI. “These sinister actions cannot be undone and will forever affect the victims. The FBI’s priority in protecting our teens and young adults from predators couldn't be clearer through this investigation. We want to thank our local law enforcement partners for their assistance in this case.”
U.S. District Judge Andrew Hanen accepted the plea and set sentencing for May 8, 2023. At that time, Bohac faces a minimum of five and up to 20 years for the receipt of child pornography as well up to five years for cyberstalking.
Bohac has been and will remain in custody pending that hearing.
The FBI-Bryan Resident Agency and the FBI-Philadelphia Field Office conducted the investigation with assistance from the Sam Houston State University Police Department.
Assistant U.S. Attorney Richard W. Bennett is prosecuting this case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Service of process on the United States Attorney in civil casesRead the Press Release
As a temporary measure due to COVID-19 concerns, service on the United States Attorney in civil cases shall be via email and US mail as follows: A copy of any summons, complaint or emergency motion shall be emailed to [email protected].
A paper copy shall be mailed to the Civil Process Clerk, United States Attorney’s Office, 1000 Louisiana St., Suite 2300, Houston, Texas 77002. Hand delivery may not be accepted.
Please do not use this e-mail box for general pleadings or correspondence. Service will not be deemed effected until you receive an e-mail acknowledgement from our office.
This emergency accommodation will expire on June 30, 2023. In addition to serving the United States Attorney, the Social Security Administration should be served in 405(g) disability cases at [email protected].
Alamdar S. Hamdani
United States AttorneySeabrook man charged with operating illegal charter cruise businessRead the Press Release
GALVESTON, Texas – A 65-year-old has been taken into custody on violation of captain of the port order, making a false statement, obstruction of a proper compliance inspection and forgery of ships papers, announced U.S. Attorney Alamdar S. Hamdani.
Gordon Johnson is expected to appear for his initial appearance before U.S. Magistrate Judge Andrew Edison at 11 a.m. tomorrow.
The indictment was returned Dec. 1, which was unsealed upon his arrest this morning.
Johnson allegedly operated the MV SPANISH PRINCESS without complying with an order of the highest ranking U.S. Coast Guard (USCG) officer in the Houston-Galveston area. The indictment further alleges he made false statements to USCG personnel in which he claimed not to have paying passengers on his ship and instructed passengers to falsely tell personnel they were not paying passengers. He further forged the signature of the seller of the vessel on a USCG bill of sale, according to the charges.
If convicted, Johnson faces up to 10 years in prison as well as a possible $250,000 maximum fine. He could also be ordered to forfeiture the MV SPANISH PRINCESS.
“The Coast Guard Investigative Service (CGIS) is firmly committed to partnering with law enforcement agencies to identify and stop those who pose a hazard to the boating public,” said Special Agent in Charge Brian Jeanfreau, CGIS Gulf Region. “Ensuring mariners are fully qualified to safely operate passenger vessels is of upmost importance to the U.S. Coast Guard.”
The CGIS conducted the investigation. Assistant U.S. Attorney Adam L. Goldman prosecuted the case with assistance from law clerk Kathleen Whitmore.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Alamdar S. Hamdani to serve as SDTX United States AttorneyRead the Press Release
McALLEN, Texas – Chief U.S. District Judge Randy Crane has sworn in Alamdar S. Hamdani as the 24th presidentially-appointed U.S. Attorney (USA) for the Southern District of Texas (SDTX). He began his duties immediately. As the USA for the SDTX, Hamdani is the chief law enforcement officer responsible for prosecuting and defending the interests of the United States in the seventh largest district in the nation.
He is the first Asian American to hold such office in the SDTX.
Hamdani took the oath of office at 10 a.m. today before an audience including Judge Crane’s staff, federal court personnel, federal public defender and Assistant U.S. Attorneys and staff. Calling it an honor to administer the oath to Hamdani, Judge Crane mentioned the sacrifices of public service and that serving as USA commands respect. He further explained the shared responsibility of moving cases through the process and working together to ensure people are fairly and efficiently treated in our justice system.
Jennifer B. Lowery, who had served as the acting, then court-appointed USA since the departure of former USA Ryan K. Patrick, commented on Hamdani’s background and how the office is happy to have him. She noted that Hamdani said he was “excited to get started.”
Hamdani thanked the previous leadership and described wanting to carry on the traditions he had learned. He spoke of former USA Don DeGabrielle, who spoke at his AUSA orientation almost 15 years ago, and how he taught him about the high standards expected of a federal prosecutor.
Hamdani also spoke of the last eight years as an AUSA with the SDTX as a “dream come true.” He explained that just to represent the United States is one of the greatest things of his career. He told the audience of how he came to this country as an immigrant from England almost 40 years ago and cited the beauty of being a part of this great country.
In swearing in Hamdani today, Judge Crane noted the job would not be an easy one, stating that the SDTX is a large district which carried a tremendous responsibility. He thanked Hamdani for traveling to the McAllen office for the oath and that he was looking forward to working with him.
Information about a possible media availability will be provided at a later date.
President Biden nominated Hamdani to serve as USA for this district Nov. 14, upon the recommendation of U.S. Senators John Cornyn and Ted Cruz. The full Senate unanimously confirmed his appointment Dec. 6.
Hamdani has been with the Department of Justice since 2008. Most recently, he has been an AUSA with the SDTX, primarily responsible for the investigation and prosecution of national security and official corruption crimes. From 2010 to 2014, Hamdani served in the Counterterrorism Section of the Department of Justice’s National Security Division, holding the position of deputy chief from 2012 to 2014. Prior to that, he was an AUSA in the Eastern District of Kentucky.
Prior to his government service, Hamdani was a partner at the law firm of Hamdani & Simon LLP in Texas from 2005 to 2008 where he litigated corporate disputes and civil rights matters. In 2003, he helped form the South Asian Bar Association of North America, holding various leadership positions in the organization, including president from 2007 to 2008. From 2001 to 2005, Hamdani was an associate attorney in the Houston office of the law firm Winstead P.C.
During his tenure as an AUSA with the SDTX, Hamdani was also an adjunct professor at the University of Houston Law Center.
Hamdani received his J.D. from the University of Houston Law Center in 1999 and his B.B.A. from the University of Texas at Austin in 1993.
The SDTX, 7th largest in terms of personnel, typically prosecutes more cases against more defendants than most other USAOs nationwide, representing 43 counties and nine million people and covering 44,000 square miles. This district currently comprises seven U.S. District Court divisions with federal district courts in Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo. The U.S. Attorney's office, headquartered in Houston, has branch offices in all seven divisions.
Reynosa resident sentenced for importing cocaine into the U.S.Read the Press Release
McALLEN, Texas – A 19-year-old United States citizen residing in Reynosa, Mexico, has been ordered to federal prison for drug trafficking, announced U.S. Attorney Jennifer B. Lowery.
Cesar Morales Jr. pleaded guilty Sept. 14.
Today, U.S. District Judge Micaela Alvarez ordered him to serve a 120-month sentence. At the hearing, the court heard argument that although Morales lacked any prior convictions, his role of a transporter of 21 kilograms of cocaine merited the 10-year sentence.
Morales attempted to make entry into the United States through the Hidalgo Port of Entry in Hidalgo on July 15. Morales was the driver and sole occupant of a vehicle.
During secondary inspection, law enforcement discovered irregularities in the fuel tank. Authorities subsequently found 20 packages of cocaine inside that tank.
Morales subsequently admitted he was importing the cocaine into the United States in exchange for payment.
Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Devin V. Walker prosecuted the case.
Victims sought in relation to violent robberies of transgender victimsRead the Press Release
HOUSTON – A 28-year-old Houston man remains in custody pending trial on federal hate crime charges allegedly motivated by gender identity and sexual orientation, announced U.S. Attorney Jennifer B. Lowery.
The charges allege Salih Alhemoud used Grindr, a social media application for members of the LGBTQ community, to set up a date with a transgender victim whom he subsequently assaulted.
According to court records, authorities are also investigating a series of other similar incidents they believe Alhemoud committed this past summer.
A photo of Alhemoud is attached. If you believe you are a victim, or have any information regarding any such potential victims, please contact the FBI Houston Field Office at 713-693-5000.
Alhemoud is charged with committing a hate crime, kidnapping, and possessing a firearm during a crime of violence. Court records allege Alhemoud used Grindr to set up a date on Aug. 29 with his transgender victim at her apartment. Upon arrival, he allegedly pulled out a gun and demanded her money and property. She was unable to produce any cash, so Alhemoud hit her with his pistol and stomped her on the face and chest, according to the charges. He also allegedly told her she was going to die and made statements such as “my religion considers you a demon,” and that she “was a demon like the others, all you trans people,” among other homosexual and transgender slurs.
A federal grand jury returned the three-count indictment Oct. 26. At a detention hearing following his arrest, he was found to be a danger to the community and ordered into custody pending further criminal proceedings. If convicted, he faces up to life in prison.
The FBI and Houston Police Department are jointly conducting this investigation. Assistant U.S. Attorneys Sharad Khandelwal and Christine Lu are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Stash house owner sentenced after people found hidden in load of watermelonRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old San Benito man has been ordered to federal prison for conspiring to transport illegal aliens within the United States, announced U.S. Attorney Jennifer B. Lowery.
Elias Lopez III pleaded guilty July 26 for his role in a conspiracy to transport illegal aliens from South Texas through the Border Patrol checkpoint near Sarita.
Today U.S. District Judge Nelva Gonzales Ramos sentenced Lopez to 33 months to be immediately followed by two years of supervised release.
On Dec. 10, 2021, authorities discovered 24 undocumented aliens hidden among a load of watermelon in a commercial trailer at the checkpoint near Sarita.
The investigation revealed some had crossed into the United States a few weeks prior and had been kept in a “stash house” until the arrangement of transportation through the checkpoint.
Two women identified Lopez and his wife as the owners and caretakers of the stash house. They also gave information about the house and where it was located. The women stayed in the house with Lopez and his wife for approximately three weeks while waiting to be transported.
Earlier in the evening on Dec. 10, Lopez drove them from the house to a dark, brushy lot where the tractor trailer was waiting. The trailer doors were open and the lights were on. The women were loaded into the trailer and told to hide among the pallets of watermelon. The trailer did not stop again until it reached the checkpoint.
Lopez’s wife was also charged and pled guilty to the offense. She is set to be sentenced in March 2023. The driver of the tractor trailer was also charged with the offense, and he is currently a fugitive.
Lopez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Ashley Martin prosecuted the case.
Recidivist robber heads to prisonRead the Press Release
HOUSTON – A 43 year-old Houston resident has been sent to prison for robbery of a Family Dollar store, announced U.S. Attorney Jennifer B. Lowery.
Robert Trussell pleaded guilty Aug. 10.
Today, U.S. District Judge Keith Ellison ordered Trussell to serve 121 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court found Trussell to be a career offender due to his convictions for three previous robberies.
At the time of his plea, Trussell admitted to committing the robbery of a Family Dollar store on Aug. 30, 2019. He acted like a customer before he passed the victim a threatening note demanding money. The victim recalled Trussell showing her a firearm in his waistband.
Authorities identified his vehicle and conducted a traffic stop and took him into custody. At the time of his arrest, law enforcement found a firearm on the passenger in the vehicle Trussell was driving.
Trussell 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 and Houston Police Department conducted the investigation. Assistant U.S. Attorney Heather Winter prosecuted the case.
This case was prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. 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. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Pastors of defunct church plead guilty to car loan and COVID-19 fraudRead the Press Release
HOUSTON – Three locals associated with Jesus Survives Ministries have admitted to conspiracy to commit bank and wire fraud, announced U.S. Attorney Jennifer B. Lowery.
William Dexter Lucas aka Bill Lucas, 60, and Deborah Jean Lucas, 64, both of Bryan, pleaded guilty today while Brian Corpian, 45, Houston, entered his plea Dec. 2.
All three have admitted to making false statements and using false documents regarding the church to fraudulently obtain loan proceeds. Jesus Survives Ministries is a defunct church in which all three claimed to be pastors. Bill Lucas claimed to be lead pastor.
For almost the last decade there were no church services or pastoral services through Jesus Survives Ministries. Since 2014, the three made false statements regarding their payroll at the church in submitting car loan applications for purchases of cars on which they had no intent of making payments. Both Bill and Deborah Lucas were able to obtain cars through these false applications.
Within days following the enactment of Coronavirus Aid, Relief and Economic Security (CARES) Act, Bill Lucas applied for multiple Economic Injury Disaster Loan (EIDL) Program and Paycheck Protection Program (PPP) loans from numerous banks. In them, he made false statements and provided false documents regarding Jesus Survives Ministries. Bill Lucas falsely claimed that Jesus Survives Ministries had gross revenues of almost a million dollars in 2019. Deborah Lucas and Brian Corpian signed some of the false documents and called bank employees and the Small Business Administration regarding the status of applications.
When Bill Lucas became frustrated with bank employees’ failure to review and fund the loans quickly, he would send accusatory and intimidating text messages and emails; including, “This is war!!!!!” “I curse you, your bank and you[r] whole family,” and “You extremists think I am playing with you. You started a war and I guarantee you that you[‘re] not walking away unscathed.” Bill Lucas also posted a diatribe on the Jesus Survives Ministries website calling one of the banks, “Minions of Satan” and sent a bank employee a photograph of the bank employee’s family, indicating Bill knew the names of the bank employee’s wife and son.
The intended loss amount totals hundreds of thousands of dollars. One of the banks approved a PPP loan of $50,000 for Jesus Survives Ministries. Once they received the fraudulent proceeds, Deborah Lucas and Bill Lucas moved the money into another bank account and went on vacation to South Carolina using fraud proceeds.
The CARES Act is a federal law enacted March 27, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act included the PPP and EIDL programs for either forgivable loans or low-interest financing for small businesses.
U.S. District Judge Charles Eskridge will impose sentencing May 11, 2023. At that time, all three face up and face up to 30 years in prison and a possible $1 million fine.
They were permitted to remain on bond pending that hearing.
Homeland Security Investigations, Treasury Inspector General for Tax Administration, Small Business Administration and Federal Deposit Insurance Corporation - Inspector General conducted the investigation. Assistant U.S. Attorneys Zahra Jivani Fenelon, Kate Suh and Kristine Rollinson are prosecuting the case.
Felon driving stolen car sent to prison for possessing methRead the Press Release
CORPUS CHRISTI, Texas – A 52-year-old Corpus Christi resident has been ordered to federal prison following his conviction of possession with intent to distribute more than 50 grams of a mixture or substance containing meth, announced U.S. Attorney Jennifer B. Lowery.
Brian Edwards pleaded guilty July 26.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Edwards to serve 87 months in federal prison followed by four years of supervised release. At the hearing, the court heard additional evidence regarding Edwards’s criminal history which includes a prior federal conviction for felon in possession of a firearm as well as an aggravated assault on a peace officer. She also heard that he is a prior gang member. In handing down the sentence, the court noted his criminal history as well as the gun found in the stolen vehicle he was driving.
On Dec. 24, 2021, law enforcement observed Edwards exit a vehicle that was reported stolen and enter a store. Further investigation revealed he was in possession of approximately 57 grams of a substance containing meth.
A search of the vehicle also revealed a firearm in the driver side door.
Edwards will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Liesel Roscher prosecuted the case.
Criminal charges unsealed against 12 individuals in wide-ranging scheme to monopolize transmigrante industry and extort competitors near U.S.-Mexico borderRead the Press Release
HOUSTON – The Department of Justice has announced the unsealing of an 11-count indictment charging 12 individuals in a long-running, multi-faceted conspiracy to monopolize the transmigrante forwarding industry in the Los Indios border region near Harlingen and Brownsville.
Transmigrantes are individuals who transport used vehicles and other goods from the United States through Mexico for resale in Central America. Transmigrante forwarding agencies are businesses that provide services to transmigrante clients, including helping those clients complete the customs paperwork required to export vehicles into Mexico.
According to the indictment, Carlos Favian Martinez, 36, Mission; Marco Antonio Medina, 32, Rigoberto Brown, 38, and Miguel Hipolito Caballero Aupart, 70, all of Brownsville; Pedro Antonio Calvillo Hernandez, 47, Tamaulipas, Mexico; Roberto Garcia Villareal, 56, San Benito; Sandra Guerra Medina, 68, Rancho Viejo; and Mireya Miranda, 56, La Feria, conspired to fix prices and allocate the market for transmigrante services in violation of Section 1 of the Sherman Act. They also allegedly conspired to monopolize the same market in violation of Section 2 of the Sherman Act. The indictment alleges they implemented price-fixing agreements and created a centralized entity known as “The Pool” to collect and divide revenues among the conspirators.
Transmigrante agency owners and industry participants who refused to charge the fixed prices, pay into the pool or pay an extortion tax were subjected to threats, intimidation and acts of violence against themselves and their families, employees, associates and businesses, according to the charges.
Martinez, Medina, Calvillo and Garcia, along with Diego Ceballos-Soto, 48, Matamoros, Mexico, and Carlos Yzaguirre, 63, Mission, were also charged with one count of conspiracy to interfere with commerce by extortion. The indictment alleges several violent acts perpetrated against transmigrante industry participants and individuals closely associated with them who disrupted the scheme or refused to pay the extortion fees. Martinez, Ceballos-Soto and Yzaguirre were also charged with one count of interference in commerce by extortion. They allegedly forced one transmigrante agency owner to pay more than $80,000 for operating outside of the Pool and failing to pay the extortion tax.
Finally, Martinez, Medina, Calvillo, Ceballos-Soto and Yzaguirre, along with Juan Hector Ramirez Avila, 32, and Jose de Jesus Tapia Fernandez, 44, both of Brownsville, were charged with money laundering conspiracy and substantive counts of money laundering related to the underlying scheme.
“The indictment charges that defendants monopolized an industry through horrific violence and threats of violence,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The department will use all the tools at its disposal – including Section 2 of the Sherman Act – to target anticompetitive conduct that undermines our country’s economic vitality and freedom.”
“As alleged, this criminal organization committed heinous acts of violence against those who would not participate in its illegal activities,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Together with our partners, we are committed to dismantling violent enterprises that victimize individuals simply trying to earn an honest living.”
“The charges announced today demonstrate our office’s commitment to protecting Texans from violent crime and exploitive business practices,” said U.S. Attorney Jennifer Lowery. “Working with our partners across the government, we will continue to investigate and prosecute violent criminals who prey on our communities.”
“This case is further proof that organized crime is active and negatively impacting our communities,” said Acting Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI) San Antonio. “These violent criminal organizations monopolized the transmigrante industry by using acts of violence, threats and even extortion. HSI employs a full range of law enforcement techniques and cross-border authorities to combat this egregious criminal activity. HSI and its law enforcement partners are committed to dismantling organized crime by eliminating their corrupt influence in our communities and protecting our nation’s borders.”
“Today’s actions are the result of the FBI’s continued collaborative efforts with our law enforcement partners in this important investigation,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division. “The FBI remains dedicated to protecting American communities from threats of violence and economic crime.”
HSI and the FBI are investigating 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.Suburban man indicted for complex fraud and crypto money laundering schemeRead the Press Release
HOUSTON – A 36-year-old Sugar Land resident has been taken into custody on charges he fraudulently obtained and laundered more than $500,000, announced U.S. Attorney Jennifer B. Lowery.
Xiaofei Chen is set to make his initial appearance before U.S. Magistrate Judge Yvonne Y. Ho at 2 p.m.
The 10-count indictment, returned Nov. 30 and unsealed upon his arrest today, alleges Chen used a fraudulent power of attorney to gain access to the victim’s checking account. Chen then allegedly arranged for $520,000 to be fraudulently wired out of the account.
According to the charges, Chen converted the fraud proceeds into Bitcoin before moving it across multiple cryptocurrency exchanges to conceal his scheme. In addition, Chen allegedly used the victim’s identity to access and open accounts. The indictment further alleges Chen then used the stolen money to fund his lifestyle and luxury purchases, including two brand new vehicles.
Chen is charged with multiple counts of wire fraud, money laundering, engaging in monetary transactions in property derived from specified unlawful activity and aggravated identify theft.
If convicted, Chen faces up to 30, 20 and 10 years, respectively, for each of the counts of wire fraud, money laundering and engaging in monetary transactions using the proceeds of his crimes. Each count of aggravated identity theft carries a mandatory two years which must be served consecutively to any other sentence imposed.
The FBI conducted the investigation. Assistant U.S. Attorneys Christian Latham and Belinda Beek are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Mission man pleads guilty for receiving more than 100 pornographic files of children as young as threeRead the Press Release
McALLEN, Texas – A 34-year-old man has admitted to receipt of child pornography, announced U.S. Attorney Jennifer B. Lowery.
As part of his plea, Esteban Luna-Caudillo admitted to receiving files containing child pornography from May 10, 2019, through May 18, 2022, by utilizing an online-based cloud storage account. Luna-Caudillo also admitted that a portion of the files he received depicted prepubescent children engaged in sexually-explicit conduct.
At the time of his arrest, Luna-Caudillo provided his phone to law enforcement. Within the phone, federal agents found over 100 videos of minor children who ranged in age from approximately three to 12 years old engaged in illicit sexual activity with adults.
U.S. District Judge Micaela Alvarez has set sentencing for Feb. 16, 2023. At that time, Luna-Caudillo faces a mandatory minimum of five and up to 20 years in federal prison.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Devin V. Walker 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.
South Texas meth trafficker heads to prisonRead the Press Release
McALLEN, Texas – A 26-year-old Corpus Christi man has been ordered to federal prison following his conviction of conspiracy to possess with intent to distribute meth, announced U.S. Attorney Jennifer B. Lowery.
Gabriel Anthony Pena pleaded guilty Dec. 1, 2021.
Today, U.S. District Judge Micaela Alvarez sentenced Pena to serve 260 months in federal prison followed by five years of supervised release. In determining the sentence, the court found that Pena’s role was that of an organizer or leader, as he had recruited another to transport narcotics from the Rio Grande Valley to Corpus Christi. The court noted the extent and lengthy duration of the scheme which involved at least 28 kilograms of meth seized over the course of multiple incidents, two of which involving the presence of a firearm. Judge Alvarez also emphasized the need to protect the community.
At the time of his plea, Pena admitted that between March and June 2021, he coordinated multiple smuggling attempts by recruiting co-conspirators to transport narcotics from the southern border to the Corpus Christi area.
In March 2021, a co-conspirator attempted to pass through the Falfurrias checkpoint with 24 kilograms of meth hidden between the frame and taillights of a Volkswagen Tiguan. At that time, authorities seized the narcotics and later determined that she had been recruited by Pena to transport through the checkpoint.
In April and June of 2021, Pena was stopped in Corpus Christi and found to be in possession of over 400 grams of the narcotic along with a firearm in his vehicle. Later, law enforcement executed a search warrant at his residence and discovered an additional 1.7 kilograms of meth.
Investigation revealed that the drugs being transported by the co-conspirator were intended to be distributed throughout the Corpus Christi area.
Pena has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Lee Fry and Matthew Redavid prosecuted the case.
Out of state man ordered to prison for stalking local victimRead the Press Release
HOUSTON – A 47-year-old Colorado man has been sent to federal prison following his conviction of stalking and threatening a woman with releasing sexually-explicit images unless she moved with him across the country, announced U.S. Attorney Jennifer B. Lowery.
Moses Cano pleaded guilty Sept. 20.
Today, U.S. District Judge Jeffrey V. Brown ordered Cano to serve 46 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard how the victim was still emotionally distraught about Cano, has changed how she interacts with others and has moved. Judge Brown heard that the victim chose not to be present at the hearing so not to give Cano the satisfaction of seeing her again. In handing down the sentence, the court noted Cano, while on supervised release, would not be able to contact the victim directly or indirectly or contact any of her friends or family that he knows based on their relationship.
Cano and the victim dated for a brief amount of time. At the end of that relationship, Cano made threats to her if she did not agree to come to Colorado with him. The victim refused. In retaliation, he then sent sexually-explicit images of the victim to her place of employment and several of her friends.
At the time of his plea, he admitted he took over her Facebook account and used it to send the images and other messages to her contacts.
In distress, the victim contacted authorities.
Cano 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 Matagorda County Sheriff’s Office. Assistant U.S. Attorney Sherri L. Zack prosecuted the case.
Group Home Owners Sentenced in $1 Million Medicare Fraud SchemeRead the Press Release
A Texas married couple was sentenced today for a $1 million Medicare fraud scheme, including violations of the federal Anti-Kickback Statute.
Lindell King, 53, of Missouri City, was sentenced to 60 months in prison. Ynedra Diggs, 45, also of Missouri City, was sentenced to 70 months in prison. King and Diggs were also ordered to pay $537,992.55 in restitution.
On April 4, King and Diggs were convicted after trial in the Southern District of Texas of conspiracy to defraud the United States and to pay and receive health care kickbacks, and multiple substantive violations of the Anti-Kickback Statute.
According to court documents and evidence presented at trial, both Diggs and King were patient recruiters who owned and operated group homes in which Medicare beneficiaries lived. In exchange for sending their group home residents to the Behavioral Medicine of Houston (BMH), a community mental health center that purported to provide partial hospitalization services, BMH paid Diggs, King, and other patient recruiters illegal kickbacks in cash and by check, often concealed as payment for “transportation” or other sham services. During the course of the conspiracy, BMH fraudulently billed approximately $1 million to Medicare in claims related to patients it received in exchange for the kickbacks paid to Diggs and King.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer B. Lowery for the Southern District of Texas; Acting Special Agent in Charge Jason Meadows of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge James H. Smith III of the FBI Houston Field Office; and Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
The HHS-OIG, FBI, and MFCU investigated the case.
Trial Attorney Monica Cooper and Acting Assistant Chief Brynn Schiess of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Fourth unlawful entry lands Mexican citizen in prisonRead the Press Release
BROWNSVILLE, Texas – A 36-year-old man has been ordered to federal prison following his conviction of illegal re-entry into the United States, announced U.S. Attorney Jennifer B. Lowery.
Raul Catalino Vasquez-Estrada, Ciudad Altamirano, Guerrero, Mexico, pleaded guilty May 4.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Vasquez-Estrada to serve 50 months in federal prison. The court also ordered him to serve an additional seven months for violating his conditions of supervised release. Not a U.S. citizen, Vasquez-Estrada is again expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence of Vazquez-Estrada’s previous criminal history.
On March 1, authorities arrested Raul Catalino Estrada-Vasquez approximately 2.9 miles west of the Gateway Port of Entry in Brownsville. Estrada-Vasquez did not possess any documents that allowed him to be or remain in the United States legally.
Estrada-Vasquez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
Texan indicted for producing pornography of 16-year-oldRead the Press Release
McALLEN, Texas – A 26-year-old man residing in Hidalgo is set to appear in federal court on charges of coercion of a minor and production of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Rogelio Pruneda III is set to appear before U.S. Magistrate Judge Juan F. Alanis at 2 p.m.
Originally charged by criminal complaint, a federal grand jury returned the two-count indictment Nov. 15.
According to the charges, Pruneda began communicating via social media with a minor female, offering money and THC vape cartridges in exchange for sexual acts. Pruneda allegedly convinced the minor female to meet locally, at which time Pruneda created two videos of the minor female performing oral sex on him.
The charges allege Pruneda exchanged messages recognizing the minor female’s age and discussed sexual activity with the minor female. Pruneda allegedly met up with the female on two more occasions at a family-owned auto shop and a residence where he engaged in sexual intercourse with the minor. In one instance Pruneda brought THC cartridges in exchange for sex, according to the charges.
Shortly thereafter, law enforcement took Pruneda into custody.
At the time of his detention hearing, the court found him to be a danger to community and ordered held in custody pending future criminal proceedings.
The FBI conducted the investigation.
Assistant U.S. Attorney Peter I. Brostowin 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.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Tax service owner pleads guilty to preparing false joint income tax returnsRead the Press Release
HOUSTON – A tax preparer has admitted to willfully preparing a false joint 2017 individual income tax return, announced U.S. Attorney Jennifer B. Lowery.
As part of his plea, Fabrice Mahinga admitted that from 2016 to 2018, he operated Kennedy Tax Service located in Houston. He admitted that he often claimed fake Schedule C items, education and fuel tax credits on the returns he prepared.
In 2019, he assisted with the preparation of a tax return that should have resulted in a tax owed of $42. Mahinga added to the return a false Schedule C and false credits that resulted in a false claim for an income tax refund of $4,257 from the IRS. A copy of the return reflected a false income tax refund of a lesser refund - $3,259 - when the refund claimed on the return filed with the IRS was $4,257.
Mahinga took responsibility of $270,612 of loss to the IRS. He has agreed to pay $182,212 in restitution.
U.S. District Judge Keith P. Ellison will impose sentencing Feb. 17. At that time, Mahinga faces up to three years in federal prison and a possible $250,000 maximum fine.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Jury convicts repeat offender for once again being in the United States illegallyRead the Press Release
CORPUS CHRISTI, Texas - A 34-year-old from Tanlacut, San Luis Potosi, Mexico, has been convicted of illegal reentry after deportation, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for 20 minutes following a one-day trial before returning a guilty verdict against Laureano Mar-Peres.
At trial, the jury heard how authorities found Mar-Peres in Kenedy County as he attempted to circumvent the United States checkpoint located near Sarita. Mar-Peres previously had been removed from the United States twice before, most recently on Oct. 22, 2021.
The defense attempted to convey to the jury that with the amount of illegal aliens processed, there was no way to prove beyond a reasonable doubt Mar-Peres was the same person who had been ordered removed previously.
The jury was not convinced and found him guilty as charged.
U.S. District Judge David Morales presided over the trial and set sentencing for Feb. 22, 2023 at which time Mar-Peres faces up to 20 years in federal prison. He has been and will remain in custody pending sentencing.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Patrick Overman and Tyler Foster prosecuted the case.
Pharr man heads to prison for trafficking over $600K of narcoticsRead the Press Release
McALLEN, Texas – A 31-year-old Texan has been sent to prison following his conviction of smuggling heroin and meth, announced U.S. Attorney Jennifer B. Lowery.
Gerardo Jimenez pleaded guilty May 12.
Today, U.S. District Judge Micaela Alvarez ordered Jimenez to serve 188 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Jimenez’s smuggling attempt and how the large amounts of heroin and meth Jimenez smuggled were a danger to the community. In handing down the sentence, the court noted that drug transportation is a serious offense and that Jimenez willingly participated as a transporter on behalf of the cartel.
At the time of his plea, Jimenez admitted that on Nov. 3, 2020, he knowingly entered the Hidalgo Border Patrol (BP) Port of Entry with drugs in his car.
Upon inspection, a K-9 alerted authorities to the hood of Jimenez’s vehicle. There, they discovered four kilograms of heroin and two kilograms of 100% pure meth concealed in the battery of his car.
The drugs had an estimated street value of $654,000.
Jimenez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Eliza Carmen Rodriguez prosecuted the case.
13 now in prison in investigation initially targeting Laredo area Mexican MafiaRead the Press Release
LAREDO, Texas – With the sentencing of a 37-year-old associate of the Texas Mexican Mafia, more than a dozen criminals are serving more than 1600 months combined for their respective roles in narcotics trafficking on the streets of Laredo, announced U.S. Attorney Jennifer B. Lowery.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced Anthony “Tono” Mercado, Laredo, to serve 33 months in prison. The sentence will be immediately followed by three years of supervised release. At the hearing, the court heard additional testimony as to testing positive for cocaine while on bond for the offense.
The sentencing today brings to a conclusion a multi-agency operation which initially targeted the Texas Mexican Mafia prison gang in Laredo. Although not all were involved in gang activity, the resulting investigation led to indictments against 12 people. All were charged with narcotics trafficking with two facing additional firearms charges.
10 were convicted for their roles in distributing crack-cocaine from a home in Laredo aka Blue Point which was situated near a school and playground.
In addition, information obtained during this investigation also led to the arrest and conviction of a 36-year-old Corpus Christi area Texas Mexican Mafia member - Robert Loya Jr. aka Lil’ Rob. A jury convicted him of possessing over six kilograms of meth and several firearms including a stolen military grade .50 caliber rifle.
Along with Mercado, several ranking members of the Mexican Mafia were sentenced to lengthy prison terms, including the former “Captain” of the Laredo area Texas Mexican Mafia - Martin Perez Jr. aka Quince. Perez was convicted for his role in the crack cocaine distribution from the Blue-Point. At sentencing, the court heard that Perez was the leader of this activity and that he used threats of violence to control others involved as well as his rivals.
U.S. District Judge Marina Garcia Marmolejo previously sentenced Perez to serve 327 months in prison. At that hearing, the court heard that Perez directed at least five other subjects to assist with a 2009 murder. Evidence also showed he had an extensive criminal record and that he has been a member of the Texas Mexican Mafia for a significant amount of time. The remaining individuals convicted in the case received terms ranging from two years to 262 months for their respective roles in the conspiracy. In the Loya case, he received a 30-year sentence.
In total, all 13 individuals received a total of more than 1600 months in federal prison.
Mercado has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration; FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Webb County Sherriff’s Office and the Laredo Police Department conducted the investigation.
Assistant U.S. Attorney Brittany L. Jensen prosecuted the case which was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven and multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
Jury convicts out of state woman in murder for hire caseRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has convicted a 52-year-old woman for conspiracy to commit murder for hire, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for less than two hours before convicting Viola Elizabeth Garcia, Oxnard, California, following a four-day trial.
During trial, the jury heard that in 2018, Mexican Mafia gang members arranged for the murder of an individual residing in Mission. An inmate who was serving a sentence for an attempted murder in 1999 contracted a Colonia Chiques gang member on parole in Oxnard, California, to execute the murder in exchange for $20,000.The gang member recruited and conspired with three additional individuals including Garcia who was his mother. Testimony revealed she agreed to travel from California to Texas to commit the murder in exchange for payment.
On Aug. 30, 2018, Garcia and co-conspirators forcibly entered the victim’s residence in
Mission and attempted to execute the murder. Their attempt was unsuccessful and they tried to flee from the scene. At that time, Garcia led responding law enforcement officers on a high speed chase until she crashed the vehicle.
The jury also heard that in July 2018, they attempted to murder the same victim.
At trial, Garcia admitted she traveled to Texas in July and August 2018 with the co-conspirators while they were in possession of firearms. She also admitted to being present and witnessing gunshots fired in the July 2018 murder attempt.Garcia attempted to convince the jury that she was unaware of any agreement or attempt to commit murder and claimed the purpose of the trip was to transport co-conspirators to visit family members and to look at potential real estate for her daughter who resided in Arizona.
They did not believe those claims and found her guilty as charged.
U.S. District Judge Ricardo H. Hinojosa presided over trial and set sentencing for Jan. 30, 2023. At that time, Garcia faces up to 10 years in federal prison and a possible $??? maximum fine.
Garcia will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of the California Department of Corrections and Rehabilitation and police departments in Mission and Oxnard, California. Assistant U.S. Attorneys Roberto Lopez Jr., Cahal P. McColgan and Sarina S. DiPiazza are prosecuting the case.Jury convicts out of state woman in murder for hire caseRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has convicted a 52-year-old woman for conspiracy to commit murder for hire, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for less than two hours before convicting Viola Elizabeth Garcia, Oxnard, California, following a four-day trial.
During trial, the jury heard that in 2018, Mexican Mafia gang members arranged for the murder of an individual residing in Mission. An inmate who was serving a sentence for an attempted murder in 1999 contracted a Colonia Chiques gang member on parole in Oxnard, California, to execute the murder in exchange for $20,000.
The gang member recruited and conspired with three additional individuals including Garcia who was his mother. Testimony revealed she agreed to travel from California to Texas to commit the murder in exchange for payment.
On Aug. 30, 2018, Garcia and co-conspirators forcibly entered the victim’s residence in
Mission and attempted to execute the murder. Their attempt was unsuccessful and they tried to flee from the scene. At that time, Garcia led responding law enforcement officers on a high speed chase until she crashed the vehicle.The jury also heard that in July 2018, they attempted to murder the same victim.
At trial, Garcia admitted she traveled to Texas in July and August 2018 with the co-conspirators while they were in possession of firearms. She also admitted to being present and witnessing gunshots fired in the July 2018 murder attempt.
Garcia attempted to convince the jury that she was unaware of any agreement or attempt to commit murder and claimed the purpose of the trip was to transport co-conspirators to visit family members and to look at potential real estate for her daughter who resided in Arizona.
They did not believe those claims and found her guilty as charged.
U.S. District Judge Ricardo H. Hinojosa presided over trial and set sentencing for Jan. 30, 2023. At that time, Garcia faces up to 10 years in federal prison.
Garcia will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of the California Department of Corrections and Rehabilitation and police departments in Mission and Oxnard, California. Assistant U.S. Attorneys Roberto Lopez Jr., Cahal P. McColgan and Sarina S. DiPiazza are prosecuting the case.
Houston area men sentenced for violent Dollar Tree robberies with firearmRead the Press Release
HOUSTON – Two local men have been ordered to federal prison for their roles in two Houston-area robberies, announced U.S. Attorney Jennifer B. Lowery.
Charles Cox, 34, and Jarred Adams, 20, pleaded guilty May 15.
Today, U.S. District Judge David Hittner imposed a 240-month term of imprisonment for Cox, while Adams received 281 months. Both must also serve three years of supervised release following their sentences. At the hearing, the court heard both men apologize to the victims and accept full responsibility of their crimes. In handing down the prison terms, the court noted that the use of weapons was a significant factor in determining their long terms in prison.
On April 13, 2021, the men entered a Dollar Tree store located on FM 1960. Adams shot and injured a clerk to obtain cash. At that time, Cox acted as the getaway driver.
The following day, the men robbed a separate Dollar Tree located on SH 249. They brandished a firearm but no shots were fired.
Cox and Adams 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 Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorney Jim McAlister prosecuted the case.
Two-ton marijuana seizure results in prison for young Mexican traffickerRead the Press Release
BROWNSVILLE, Texas – A 21-year-old Mexican citizen has been sent to prison following his conviction of conspiracy to transport over four thousand pounds of marijuana, announced U.S. Attorney Jennifer B. Lowery.
Jorge Monjaraz-Perez pleaded guilty Jan. 13.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Monjaraz-Perez to serve 200 months in federal prison. Not a U.S. citizen, Monjaraz-Perez is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted Monjaraz-Perez coordinated with a drug trafficking organization and was also manager in that organization, facilitating the trafficking of the drug loads in numerous different ways. Judge Rodriguez further noted that this wasn’t aberrant behavior and that Monjaraz-Perez trafficked a large amount of marijuana over several different events.
At the time of his plea, Monjaraz-Perez admitted he conspired with a drug trafficking organization to transport at least 1,886 kilograms of marijuana.
He also acknowledged running a marijuana stash house located in Brownsville and participating in at least 12 drug trafficking loads. Law enforcement seized marijuana from 7 different events in Brownsville near the Rio Grande River, each load ranging between 91 kilograms and 528 kilograms.
Monjaraz-Perez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
Houstonian receives sentence for enticing South Texas minor into commercial sexRead the Press Release
HOUSTON – A 23-year-old man has been ordered to prison for enticement of a minor online, announced U.S. Attorney Jennifer B. Lowery.
Malcolm Lenard Thomas, Houston, pleaded guilty June 21.
Today, U.S. District Judge Charles Eskridge ordered Thomas to serve 121 months in federal prison to be immediately followed by 15 years of supervised release.
At the time of his plea, he admitted he communicated via Instagram with whom he thought was a 15-year-old female.
He connected with the individual in October 2021. In those conversations, he conveyed his expectations to recruit her to engage in commercial sex in Houston for his own financial benefit, calling it the rules of “the game.”
Through numerous exchanges over social media and other means, he instructed her how to send him money. He then purchased a bus ticket for her to travel to Houston. He made arrangements to pick her up on Oct. 29, 2021. Upon his arrival, law enforcement took him into custody.
In addition to his plea, he also admitted to sending the 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.
Thomas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation.
HTRA law enforcement includes members of the Houston Police Department, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case.
Former Border Patrol agent indicted for hiring undocumented individuals as driversRead the Press Release
LAREDO, Texas – A former Border Patrol (BP) agent, his wife and a Laredo man have been charged for their roles in a conspiracy to hire illegal aliens by fraudulently obtaining immigration permits, announced U.S. Attorney Jennifer B. Lowery.
Authorities arrested Ricardo Gonzalez, 39, his wife, Natalia Gonzalez, 35, and Alex Lopez, 33, today. They are expected to appear before U.S. Magistrate Judge Diana Song Quiroga at 10 a.m. tomorrow.
A federal grand jury returned the three-count indictment Nov.15.
According to the charges, the three conspirators were responsible for the day-to-day operations of Gonmor Inc., a commercial trucking company located in Laredo.
Beginning in February of 2017, the indictment alleges the group recruited and hired undocumented individuals to work as commercial truck drivers and paid them less due to their citizenship status. They were allegedly aware that the people they hired were not legally allowed to work in the United States.
The conspirators allegedly prepared paperwork so the individuals could obtain an I-94 permit which allows a visitor to travel farther than 25 miles from the border and remain in the United States for more than 30 days. Applicants must present another permit/visa such as a border crossing card in order to obtain an I-94 and are not eligible to work in the United States by law, according to the charges.
The paperwork allegedly included a letter from a fictious Mexican trucking company and stated the undocumented individual was employed by the company as a truck driver. According to the indictment, the letter further requested that the person receive an I-94 permit so that he could travel into the United States.
The group allegedly instructed individuals to present the letter to authorities at a port of entry in Laredo to apply for the permit. When the individual received the permit, the co-conspirators allegedly assigned jobs to the new employee to transport legitimate cargo throughout the United States.
Gonzalez is a former BP agent and allegedly utilized his knowledge, training and experience to facilitate the employment of undocumented individuals and obtaining the I-94 permits.
If convicted, each faces up to five years for the conspiracy to fraudulently obtain immigration permits and up to 10 years each for the conspiracy to encourage or induce an alien to remain in the United States and conspiracy to harbor/shield an alien from detection.
Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Brian Bajew 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.
Mission man sent to prison for hiding kilos of heroin in floorboardsRead the Press Release
CORPUS CHRISTI, Texas – A 27-year-old man residing in Mission has been ordered to federal prison following his conviction of possession with the intent to distribute nine kilograms of heroin, announced U.S. Attorney Jennifer B. Lowery.
Gerardo Torres pleaded guilty April 5.
Today, U.S. District Judge Drew B. Tipton ordered Torres to serve 48 months in federal prison to be immediately followed by four years of supervised release.
On Sept.10, 2021, Torres arrived at the Javier Vega Jr. Border Patrol (BP) checkpoint while driving a white Nissan Sentra. At that time, authorities believed he was carrying illegal narcotics and referred him to secondary inspection.
They noticed tool marks on his passenger seat rails. Law enforcement moved the front passenger seat further back and found white overspray on the wires beneath the seat. They lifted the carpet off the floorboard, found a trap door with four vacuum-sealed bundles wrapped in clear cellophane within the compartment.
Authorities continued to search the driver’s side floorboard which revealed another trap door. Five bundles were beneath the second door with four wrapped in black electrical tape and one vacuum-sealed in clear cellophane. Both rear floorboards also had trap doors but were empty.
The nine bundles were later determined to be 9.086 kilograms of heroin with an estimated street value of $545,160.
Torres 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. Attorneys J. Parker Gochenour and Liesel Roscher prosecuted the case.
Sending meth-laced mail into federal detention center lands Corpus woman in prisonRead the Press Release
CORPUS CHRISTI, Texas – A 54-year-old woman residing in Corpus Christi has been ordered to federal prison for mailing meth-laced papers disguised as mail to the Coastal Bend Detention Center (CBDC), announced U.S. Attorney Jennifer B. Lowery.
Gail Hostetter pleaded guilty July 21 to knowingly and intentionally possessing and attempting to provide meth to an inmate.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Hostetter to serve 24 months in federal prison to be immediately followed by two years of supervised release.
On Jan. 29, 2021, Hostetter mailed a letter purporting to be from a local law firm to an inmate at CBDC. However, facility staff intercepted it and sent it for testing. The mail tested positive for meth. Law enforcement subsequently executed a search warrant on Hostetter’s residence where they found additional empty envelopes pre-addressed from various local law firms.
The investigation revealed the inmate devised the plan and recruited Hostetter among others to mail meth-laced papers into the detention center. The scheme involved creating envelopes designed to look like legal mail.
At the time of her plea, Hostetter admitted to mailing meth into a jail facility on at least one other occasion.
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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations conducted the investigation with the assistance of the U.S. Marshals Service, The GEO Group, Drug Enforcement Administration, Corpus Christi Police Department, U.S. Postal Inspection Service, Bureau of Prisons and FBI Miami Task Force. Assistant U.S. Attorneys John Marck and Christopher Marin prosecuted the case.
Man charged with preparing false joint income tax returnRead the Press Release
HOUSTON – A tax preparer is set to appear in court on charges of preparing a false joint income tax return, announced U.S. Attorney Jennifer B. Lowery.
Fabrice Mahinga is expected to make his initial appearance before U.S. Magistrate Judge Yvonne Ho at 2 p.m.
The charges allege that in 2018, Mahinga willfully prepared a false tax return listing fake Schedule C loss, Earned Income Tax Credit, American Opportunity Credit, additional child tax credit and a false claim for an income tax refund.
If convicted, Mahinga faces up to three years in prison and a possible $250,000 maximum fine.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
An information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Jury convicts local man for possession of a pipe bombRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted a 44-year-old man for possessing an unregistered destructive device, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately 90 minutes before convicting Elden Don Brannan following a two-day trial.
On Feb. 23, law enforcement responded to reports of a family altercation involving Brannan. His sister informed authorities he had a pipe bomb in his room.
The jury heard from a law enforcement officer who explained how they located and disassembled the device. The item consisted of a fuse inserted into metal pipe wrapped in tape containing 39.7 grams of black powder and pyrotechnic stars, a wax-like substance and five U.S. dimes.
Laboratory analysis determined the powder, stars and fuse to be explosive materials. Testing also confirmed the device was destructive as the law defines. In addition, the bomb was not properly registered to Brannan in the National Firearms Registration and transfer record.
The defense tried to convince the jury Brannan had attempted to construct a firework. They did not believe those claims and found him guilty as charged.
U.S. District Judge David Morales presided over trial and set sentencing for Feb. 7, 2023. At that time, Brannan faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Joel Dunn and John Marck prosecuted the case with the help of Paralegal Rachel Gonzales.
Former Department of Transportation employee charged with bribery and extortionRead the Press Release
A federal grand jury in Houston has returned an indictment charging a former Department of Transportation (DOT) employee with bribery and extortion.
Patrick Gorena, 54, Lyford, is scheduled for his initial court appearance today 2 p.m.
According to the indictment, returned Nov. 2, Gorena was a border investigator for DOT’s Federal Motor Carrier Safety Administration. In exchange for minimizing purported safety violations he encountered while auditing a trucking company, which would have exposed the company to potential fines and the loss of their DOT license, Gorena allegedly demanded a $3,500 payment. The charges allege Gorena ultimately accepted a $2,000 bribe from an undercover law enforcement officer posing as a representative of the trucking company.
Gorena is charged with one count of bribery and one count of extortion under color of law.
If convicted, he faces a maximum penalty of 35 years in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jennifer Lowery for the Southern District of Texas and Special Agent in Charge Todd A. Damiani of the DOT Office of Inspector General’s (DOT-OIG) Southern Region made the announcement.
The DOT-OIG and McAllen FBI Public Corruption Squad are investigating the case.
Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Richard Hanes for the Southern District of Texas are prosecuting the case.
Former Department of Transportation Employee Charged with Bribery and ExtortionRead the Press Release
A federal grand jury in Houston has returned an indictment charging a former U.S. Department of Transportation (DOT) employee with bribery and extortion.
Patrick Gorena, 54, of Lyford, Texas, is scheduled to make his initial court appearance today at 3 p.m. EST.
According to court documents, Gorena was a border investigator for DOT’s Federal Motor Carrier Safety Administration. In exchange for minimizing purported safety violations he encountered while auditing a trucking company, which would have exposed the company to potential fines and the loss of their ability to operate, Gorena allegedly demanded a $3,500 cash payment. The charges allege Gorena ultimately accepted a $2,000 bribe from an undercover law enforcement officer posing as a representative of the trucking company.
Gorena is charged with one count of bribery and one count of extortion under color of official right. If convicted, he faces a maximum penalty of 20 years in prison on the extortion count and 15 years in prison on the bribery count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jennifer Lowery for the Southern District of Texas, Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office, and Special Agent in Charge Todd A. Damiani of the DOT Office of Inspector General’s (DOT-OIG) Southern Region made the announcement.
The McAllen FBI Public Corruption Squad and DOT-OIG are investigating the case.
Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Richard Hanes for the Southern District of Texas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Houston woman charged for filing false tax returns for othersRead the Press Release
HOUSTON – A local tax preparer is set to make her initial appearance in federal court on charges of aiding and assisting in the preparation and filing of false income tax returns, announced U.S. Attorney Jennifer B. Lowery.
Krystal Wright made her initial appearance before U.S. Magistrate Judge Palermo at 2 p.m. today.
A federal grand jury sitting in Houston returned an 18-count indictment Sept. 27.
According to the charges, Wright assisted in the preparation and filing of false income tax returns from 2016 to 2019.
If convicted, she faces up to three years in prison and a possible $100,000 maximum fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
An information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Two men admit to harboring over 31 peopleRead the Press Release
LAREDO, Texas – Two men illegally residing in Laredo have pleaded guilty to harboring illegal aliens, announced U.S. Attorney Jennifer B. Lowery.
Angel Garcia-Garcia, 27, Veracruz, Mexico, and Selvin Antonio Gomez-Garranza, 22, Choluteca, Honduras, pleaded guilty to their roles in conspiring to conceal, harbor or shield 31 non-U.S. citizens.
As part of their pleas, Garcia-Garcia and Gomez-Garranza admitted on April 8, they transported undocumented individuals to a stash house. Gomez-Garranza also admitted to being a caretaker.
Authorities executed a search warrant and discovered 31 people inside the house. They additionally found three ledgers with approximately 350 names listed.
U.S. District Judge Diana Saldana will impose sentencing at a future date. At that time, both face up to 10 years in federal prison and a possible $250,000 maximum fine. Not U.S. citizens, both are expected to also face removal proceedings.
Garcia-Garcia and Gomez-Garranza have been and remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Matthew Isaac is prosecuting the case.
Out of state trucker ordered to prison for carrying cocaineRead the Press Release
BROWNSVILLE, Texas – A 54-year-old man has been sent to federal prison following his conviction of trafficking 75 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Legusta Juaquim Rodan, De Valls Bluff, Arkansas, pleaded guilty Aug. 1.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Rodan to serve 87 months in federal prison followed by three years of supervised release. In handing down the sentence, the court noted that Rodan participated in a pattern of conduct in narcotics trafficking as opposed to being caught up in a one time event.
On Sept. 10, 2020, law enforcement inspected Rodan’s vehicle at the Falfurrias Border Patrol (BP) checkpoint. At that time, they discovered 75.5 kilograms of cocaine and 400 kilograms of marijuana in his tractor trailer.
The trailer contained wooden pallets full of cartons of raspberries. After a K-9 alerted to a drug scent, authorities found 43 bundles of drugs hidden below the pallets and cartons of fruit.
Rodan 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, Homeland Security Investigations and BP conducted the investigation. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
Local man convicted of conspiracy to transport people in truck bedRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has returned a guilty verdict against a 44-year-old man for conspiring to transport illegal aliens, announced U.S. Attorney Jennifer B. Lowery.
The Jury deliberated for approximately 30 minutes before convicting Ernest Mario Gutierrez following a two-day trial.
On Aug. 5, 2020, law enforcement learned of a vehicle in which people were being loaded on Highway 281. Shortly thereafter, they found and began following a suspicious white pickup truck believed to be involved to a Stripes gas station.
There, they discovered two undocumented individuals in the bed of the truck and one in the cab.
At trial, the jury heard from law enforcement that Gutierrez has been a passenger of the vehicle and attempted to avoid detection by entering the gas station.
The defense attempted to convince the jury Gutierrez did not know that the driver of the truck was going to pick up aliens. The jury was not convinced and found him guilty as charged.
U.S. District Judge Nelva Gonzalez Ramos presided over the trial and set sentencing for Feb. 1, 2023. At that time, Gutierrez faces up to 10 years in prison and a possible $250,000 maximum fine.
Gutierrez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Amanda L. Gould is prosecuting the case.
Jury convicts truck driver of illegally transporting peopleRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted a 52-year-old Texan for transporting illegal aliens within the United States, announced U.S. Attorney Jennifer B. Lowery today.
The jury deliberated for approximately two hours before convicting Rodolfo Cazares, San Juan, following a two-day trial
At trial, the jury heard on June 19, 2021, Cazares drove a tractor trailer to the Sarita Border Patrol (BP) checkpoint. At initial inspection, a K-9 alerted law enforcement to the tractor. They subsequently discovered four undocumented individuals hidden within various parts of the vehicle.
The individuals admitted to being in the country illegally. They also described to authorities how they were loaded into the trailer earlier that night.
Cazares attempted to convince the jury he did not know the individuals were in the tractor. The jury ultimately did not believe his claims and found Cazares guilty as charged.
U.S. District Judge David Morales presided over trial and set sentencing for Jan. 30, 2023. At that time, Cazares faces up to five years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
BP conducted the investigation. Assistant U.S. Attorneys Roland Swanson and Tyler Foster are prosecuting the case.
Indian national sentenced for government impersonation call center scamRead the Press Release
HOUSTON – A 38-year-old Indian citizen who was illegally residing in Houston has been ordered to prison for conspiracy to commit mail fraud, announced U.S. Attorney Jennifer B. Lowery.
Waseem Maknojiya pleaded guilty Sept. 13, 2021.
Today, U.S. District Judge U.S. District Judge Lynn N. Hughes ordered him to serve 60 months in federal prison. Not a U.S. citizen, Maknojiya is expected to face removal proceedings following his imprisonment.
Between April and October 2019, Maknojiya was involved in a telemarketing scheme via Indian call centers to extort money from victims in the United States. Maknojiya acted as a runner in these schemes, using aliases and fake identification documents to pick up more than 70 parcels containing cash the scheme’s victims had mailed.
One common script used in the scheme involved coercing victims into believing federal agents were investigating them. The “agent” on the phone would convince the victim the only way to clear his or her name from investigation was to send cash in a parcel shipped through FedEx to a name and address they provided. Runners in the United States like Maknojiya would then pick up the parcels.
At the time of his plea, Maknojiya agreed to pay restitution to the scheme’s identified victims.
Maknojiya will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Social Security Administration - Office of Inspector General (SSA-OIG) and 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. Attorneys Stephanie Bauman and Eun Kate Suh prosecuted the case.
The SSA consistently warns people of similar scams.
Former Brownsville police officer sentenced for escorting drugsRead the Press Release
BROWNSVILLE, Texas – A 53-year-old man residing in Brownsville has been ordered to federal prison following his conviction of trafficking one kilogram of meth, announced U.S. Attorney Jennifer B. Lowery.
Jose Salinas pleaded guilty Aug. 2. He is a former law enforcement officer of the Brownsville Police Department.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Salinas to serve 96 months in federal prison followed by three years of supervised release. He was further ordered to pay a $3,000 fine. In handing down the sentence, the court noted the position that Salinas held as an officer and that he misused this position of trust to commit the crime over a period of time, not just on one occasion. Judge Rodriguez also expressed concern that the criminal conduct Salinas committed cast all law enforcement in a bad light in the community.
On March 19, 2020, Salinas met people he believed to be drug traffickers at a used car lot he owned. Salinas received $2,500 in cash for escorting meth and cocaine from the lot to a stash house he provided. During that time, Salinas had parked his marked police car in front of the stash house to protect the drug load.
Salinas was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Drug Enforcement Administration and Homeland Security Investigations conducted the investigation with assistance of the Brownsville Police Department. Assistant U.S. Attorneys David A. Lindenmuth, Israel Cano and Jody Young prosecuted the case.
Legal permanent resident admits to importing meth and fentanylRead the Press Release
LAREDO, Texas – A 42-year-old man residing in Pearland has pleaded guilty to importing over 20 kilograms of meth and 900 grams of fentanyl, announced U.S. Attorney Jennifer B. Lowery.
On June 24, Jose Luis Escareno attempted to enter the United States through the Juarez-Lincoln Port of Entry in Laredo. At that time, he was driving a pickup truck and pulling a trailer.
At inspection, he claimed ownership of everything inside the vehicle and trailer. Shortly after, law enforcement discovered narcotics hidden inside a mini split air conditioning unit located in the trailer and within a cooler in the truck. They were later determined to be 21.40 kilograms of meth and 8,500 pills of fentanyl weighing approximately 931 grams.
As part of his plea, Escareno claimed the air conditioning unit belonged to a friend who was going to pay him $150 to transport it to Houston. He further admitted he purchased and packed the coolers with contents that belonged to him.
U.S. District Judge Diana Saldana will impose sentencing at a later date. At that time, Escareno faces up to life in prison and a possible $10 million maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
#OnePillCanKill
Election officers namedRead the Press Release
HOUSTON – Two Assistant U.S. Attorneys will lead the efforts of this office in connection with the Department of Justice’s (DOJ) nationwide Election Day Program for the upcoming Nov. 8 general election, announced U.S. Attorney Jennifer B. Lowery.
Civil Chief Daniel Hu has been appointed to serve as the election officer for civil matters, while Deputy Criminal Chief Sharad Khandelwal will act as the criminal election officer. In their capacities, both are responsible for overseeing the Southern District of Texas’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff and election fraud in consultation with DOJ headquarters in Washington.
DOJ has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers as well as election fraud. DOJ will address these violations wherever they occur. DOJ’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
The franchise is the cornerstone of American democracy. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election and to ensure that such complaints are directed to the appropriate authorities, AUSAs Khandelwal and Hu will be on duty in this district while the polls are open and can be reached at 713-567-9345 and 713-567-9518, respectively.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C. by phone at 800-253-3931 or by this complaint form.
Ensuring free and fair elections depends in large part on the assistance of the American electorate. Those who have specific information about voting rights concerns or election fraud should make that information available to DOJ.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places and almost always have faster reaction capacity in an emergency.
Health department official admits to accepting bribes from vendorsRead the Press Release
HOUSTON – The former administrative and community outreach coordinator for the Houston Health Department (HHD) has pleaded guilty to bribery, announced U.S. Attorney Jennifer B. Lowery along with Assistant Attorney General Kenneth Polite Jr. of the Department of Justice’s (DOJ) Criminal Division.
Barry Barnes, 62, accepted bribes from three businesses in exchange for influencing the selection of each to perform services for the HHD.
“This office has an unyielding commitment to attack public corruption at any level. The people of the Southern District of Texas deserve an environment in which public officials are held to the highest standards,” said Lowery. “This prosecution should send a clear message that we will find and hold accountable any public official who abuses the public trust.”
From November 2019 until March 2021, Barnes engaged in a kickback scheme with a business owner and abused his position with the HHD to facilitate the selection of the business under the emergency purchase order process. Barnes subsequently submitted invoices to ensure this individual was paid for six lucrative marketing, advertising and media contracts, including three service contracts related to the COVID-19 global pandemic that federal COVID-19 relief funded. In exchange, Barnes received several cash payments from January 2020 to February 2021.
As part of his plea agreement, Barnes acknowledged that in December 2020, he selected another business owner to perform advertising services for the HHD. In return, Barnes received a portion of the funds. Barnes again engaged in the same scheme in January 2021 with yet another business. He received a kickback for assisting that business owner in obtaining a disbursement from the City of Houston for advertisement services performed for the HHD.
Barnes pleaded guilty to bribery concerning programs receiving federal funds and faces up to 10 years in prison and a $250,000 maximum possible fine. U.S. District Judge Sim Lake will impose sentencing Jan. 26, 2023.
He was permitted to remain on bond pending that hearing.
The FBI - Houston Field Office conducted the investigation. Assistant U.S. Attorney Sebastian A. Edwards and Trial Attorney Demetrius Sumner of DOJ’s Public Integrity Section are prosecuting the case.
Local man sent to prison for conspiracy to transport 124 peopleRead the Press Release
LAREDO, Texas – A 67-year-old Laredo man has been sent to federal prison following his conviction of conspiring to transport people in a sealed trailer, announced U.S. Attorney Jennifer B. Lowery.
A federal jury deliberated for approximately two hours following a two-day trial before returning a guilty verdict July 20 on one count of conspiracy against David William McKeon.
Today, U.S. District Judge Marina Garcia Marmolejo ordered McKeon to serve 57 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court repeatedly emphasized McKeon’s actions resulted in endangering over 100 people.
On April 20, McKeon arrived at the Laredo North Border Patrol (BP) checkpoint while driving a tractor-trailer. At that time, law enforcement heard suspicious noises coming from the trailer. They opened a vent door and discovered 124 locked behind the doors.
At trial, the jury heard that McKeon had said he was recruited for the job at his birthday party a few days earlier. They heard he picked up the tractor-trailer from a dirt road then was given a fraudulent bill of lading in the parking lot of a Popeye’s restaurant before driving to the checkpoint.
However, the defense attempted to convince the jury that McKeon didn’t know there were aliens inside the trailer. The jury ultimately found him guilty of engaging in a conspiracy to transport the aliens.
McKeon 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 BP. Assistant U.S. Attorneys Brian Bajew and David Fawcett prosecuted the case.
Brandishing AR-15 and fleeing results in prison for San Ygnacio manRead the Press Release
LAREDO, Texas – A 46-year-old man has been sent to prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for 45 minutes before convicting Daniel Arturo Lozano July 27 following a one-day trial.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Lozano to serve 46 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court stressed the fact that Lozano was a convicted felon yet brandished a firearm to law enforcement. The court further noted he would “have to make some changes.”
On June 21, 2021, law enforcement responded to reports describing Lozano’s angry and disorderly behavior at Lozano’s Country Store located in San Ygnacio.
Upon their arrival, Lozano fled the scene and began a vehicle chase before returning to the store. At that time, he exited his vehicle and brandished an AR-style rifle. Lozano left the rifle at the store, returned to his truck and departed. Law enforcement took Lozano into custody later that night.
The defense attempted to convince the jury that the weapon Lozano displayed was actually a realistic-looking pellet gun that law enforcement found when they arrested him. However, the jury saw both the pellet gun and AR-style rifle compared side by side and the rifle was identified as the weapon Lozano had showed at the scene.
The jury did not believe defense claims and found Lozano guilty as charged.
He has been previously convicted of possession of cocaine. As such, he is prohibited per federal law of possession of a firearms or ammunition.
Lozano 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 Zapata County Sheriff’s Office. Assistant U.S. Attorneys Brian Bajew and David Fawcett prosecuted the case.
Tax preparer sentenced for fraudulently inflating tax returnsRead the Press Release
HOUSTON – A former local tax preparer has been ordered to federal prison following his conviction of fraudulently filing tax returns from 2014 to 2017, announced U.S. Attorney Jennifer B. Lowery.
David Wright pleaded guilty June 3.
Today, U.S. District Judge David Hittner sentenced him to 36 months in federal prison to be immediately followed by one year of supervised release. Wright was further ordered to pay $178,688 in restitution to the IRS. At the hearing, the court heard additional argument regarding how Wright profiting from several years of fraudulently filing tax returns. In handing down the sentence, the court noted the nature of the offense, the fact that Wright employed others to participate in the fraudulent activity and that these fraudulent filings were done without the knowledge of the taxpayer clients.
The investigation revealed Wright and his employees prepared and submitted 43 fraudulent tax returns for 16 clients. They consistently used false Schedule C Business Income or Loss deductions to inflate tax refunds for clients.
They included fake expenses such as advertising, vehicle/transportation, legal/professional services, office/business property costs, maintenance, supplies, travel and utilities. This caused hundreds of thousands of dollars of tax loss to the IRS.
Wright was taken into custody and will be transferred to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Zahra Jivani Fenelon prosecuted the case.
Monkey smuggler pleads guiltyRead the Press Release
BROWNSVILLE, Texas - A 20-year-old Katy resident has pleaded guilty to illegally smuggling a spider monkey into the United States and fleeing from federal law enforcement, announced U.S. Attorney Jennifer B. Lowery.
Savannah Nicole Valdez pleaded guilty to smuggling wildlife into the United States without first declaring and invoicing it and fleeing an immigration checkpoint.
On March 21, Valdez attempted to enter the United States through the Gateway International Bridge in Brownsville. Law enforcement observed a wooden box with holes inside the vehicle which Valdez said contained beer she had purchased in Mexico.
However, when authorities opened the box, they discovered a live spider monkey and referred Valdez to secondary inspection. Valdez refused to comply with their instructions and instead sped off, running a traffic light and nearly colliding with officers and other vehicles.
Later that day, agents found multiple online postings advertising the sale of the spider monkey in the Katy and Houston areas with Valdez’s phone number listed in the advertisements.
On March 28, Valdez contacted law enforcement and turned herself in. She admitted to knowingly importing the monkey despite not declaring it and intentionally fleeing from law enforcement.
The monkey was ultimately recovered and placed with an animal shelter in the Central Florida area.
U.S. District Judge Rolando Olvera will impose sentencing Jan. 25. At that time, Valdez faces up to 20 years in federal prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
Homeland Security Investigations, Customs and Border Protection and the Fish and Wildlife Service conducted the investigation with the assistance of the Kingsville Police Department.
Assistant U.S. Attorney Edgardo J. Rodriguez is prosecuting the case.
Mexican women plead guilty to smuggling balls of heroin in potato chip bagsRead the Press Release
LAREDO, Texas – Two women residing in Monterrey, Mexico, have admitted to their roles in importing nearly 1000 grams of heroin, announced U.S. Attorney Jennifer B. Lowery.
Maria Luisa Hernandez-Alanis, 41, and Tania Melissa Coutino-Hernandez, 40, admitted that on Sept. 4, 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.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Hernandez-Alanis and Coutino-Hernandez face up to 40 years in prison and a possible $5 million maximum fine.
Both Hernandez-Alanis and Coutino-Hernandez have been in and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.