Southern District of Texas
Press releases recorded for this federal judicial district.
Dental clinic operator arrested for failing to pay $1.7 million in taxesRead the Press Release
HOUSTON – A local man has been taken into custody on charges of tax evasion and failure to pay employment taxes, announced Jennifer B. Lowery.
Jonathan Louis Lepow is expected to make an initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m. today.
According to the indictment, returned under seal March 30, Lepow operated Lepow DDS. He was allegedly the office and business manager responsible for payroll obligations and making tax payments to the IRS. Beginning in 2012, Lepow stopped paying employment taxes to the IRS, according to the charges.
The indictment further alleges Lepow avoided paying owed taxes to the IRS by opening and closing bank accounts, accepting cash payments for dental and other services and depositing revenue in bank accounts held in the name of other companies. These allegedly included Texas Center for Continuing Education, Lepow Properties LLC, American Dental Supply LLC, Lepow Management Inc. and Lepow Management LLC.
During the 2012-2016 tax years, Lepow’s outstanding employment tax obligation exceeded over $1.7 million.
If convicted, Lepow faces up to 10 years of imprisonment a possible $250,000 maximum fine.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Quincy L. Ollison 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.15 convicted in $11M cartel drug conspiracyRead the Press Release
LAREDO, Texas – Several individuals residing in South Texas and Mexico have pleaded guilty for their roles in a conspiracy to transport large quantities of marijuana forCartel del Noreste (CDN), announced U.S. Attorney Jennifer B. Lowery.
Gustavo Alberto Duenes-Perez pleaded guilty today to conspiracy to possess with intent to distribute 1,000 kilograms or more of marijuana. Fourteen others previously pleaded guilty for their roles in the same conspiracy.
“The arrests and convictions serve as a significant blow to the cartels who were trafficking massive amounts of marijuana into the Laredo area for years and using our communities to make profit,” said Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. “These individuals were a thorn that has now been ripped from the city of Laredo and surrounding areas thanks to the continuous hard work and commitment of federal and local law enforcement agencies and prosecutors who brought these individuals to justice.
“We are pleased to be an integral component of a complex and successful investigation which led to conviction of these 15 individuals,” said Laredo Police Department (LPD) chief Claudio Treviño. “Through our close collaborations with our federal, state and local law enforcement partners, we have been able to maintain enforcement and safety in our border community despite our proximity to the Mexican border. LPD lauds our Narcotics and Vice Unit for their dedication and tireless efforts towards their investigation and the seamless teamwork with our partner agencies. We are committed to enhance their efforts with future collaborations to disrupt and dismantle these criminal transnational organizations in order to maintain peace and safety for the citizens of Laredo.”
In March 2019, authorities learned CDN provided $4,500 for the purchase of a white utility truck. The organization planned to use the vehicle to pick up a marijuana load from a warehouse on San Mateo Drive in Laredo.
Law enforcement continued the investigation and monitored the vehicle over the next several months. Duenes-Perez was often the driver. On April 17, 2019, the truck was involved in a smuggling event that occurred at a ranch near State Highway 359 and Botello Road in Laredo.
There, several people loaded a Lincoln Navigator with bundles of marijuana which was driven to a local stash house. Law enforcement seized approximately 1,168 kilograms of marijuana from the ranch and an additional 969 kilograms from inside both the Lincoln Navigator and the stash house.
In total, authorities have seized approximately 11,240 kilograms of marijuana valued at approximately $11.6 million as part of the case.
All 15 co-conspirators are scheduled for sentencing before District Judge Marina Garcia Marmolejo in June 2022. Duenes-Perez and others could face up to life in prison and a $10 million maximum possible fine. Other convicted in relation to the investigation face up to 40 years. Duenes-Perez has been and will remain in custody pending that hearing.
This case was part of the Blue Indigo Task Force and brought as part of the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Noreste. OCDETF is the largest anti-crime task force in the country. Its mission is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
The DEA and LPD conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; Border Patrol; Customs and Border Protection; FBI; Homeland Security Investigations; U.S. National Guard; Webb County District Attorney’s Office, Sheriff’s Office and Constable’s Office Precincts 1 and 4; and Texas Department of Public Safety.
Assistant U.S. Attorney Jennifer Day is prosecuting this case.
Health care clinic and home health owners found guilty of fraudRead the Press Release
HOUSTON – Two individuals have been convicted of conspiracy to commit and committing health care fraud, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for 45 minutes before convicting Alfred Olotin Alatan, 62, formerly of Houston and now residing in Fulshear, and Francis Ekene, 71, Sugar Land, following a day three-day trial. Alatan was also found guilty of money laundering.
Alatan was the owner of Colony Home Health Services, while Francis was the owner of Milten Medical Clinic, both businesses located in Houston.
At trial, the jury heard that Alatan paid recruiters to bring patient information to be billed for home health services regardless of whether they needed it or not. Beneficiaries testified in trial and admitted they did not need home health services at the time the health care service providers billed them.
Additional testimony revealed Dr. John Ramirez had signed off on plan of care forms at the Milton Clinic when patients were not actually under his care.
Previous employees Susana Bermudez and Rita Kpotie Smith also testified. Bermudez admitted she and Smith operated both clinics and that Alatan was the leader of the scheme. Both Alatan and Ekene would consult Bermudez and Smith who directed them and provided assistance in carrying out the scheme within both offices.
At trial, the defense attempted to convince the jury they were not involved in the daily operations and did not know the provided services were unnecessary and fraudulent.
U.S. District Judge Sim Lake presided over trial and set sentencing for July 22. At that time, Alatan and Ekene face up to 10 years in federal prison and a possible $250,000 maximum fine on each count of conviction. Alatan could also receive up to 20 years for his conviction of money laundering.
Alatan and Ekene were permitted to remain on bond pending sentencing.
Bermudez, both 55 and of Houston, previously pleaded guilty to their roles as co-conspirators in the scheme. Bermudez is currently serving 30 months in federal prison, while Smith is set for sentencing July 21.
The U.S. Department of Health and Human Services - Office of Inspector General conducted the investigation with the assistance of the FBI. Assistant U.S. Attorneys Tina Ansari and Grace Murphy are prosecuting the case.
Former USDA animal inspector pleads guiltyRead the Press Release
LAREDO, Texas – A 68-year-old Laredo man has admitted to accepting bribes, announced U.S. Attorney Jennifer B. Lowery.
Roberto Adams pleaded guilty to accepting over $40,000 in bribery payments while employed as a U.S. Department of Agriculture (USDA) lead animal health technician.
Adams inspected cattle entering the United States to determine if they met the necessary health requirements to enter the country. Over the course of at least 14 months, Mexican cattle brokers paid Adams to allow cattle into the country without proper quarantine or legitimate inspection.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Aug. 3. At that time, Adams faces up to 15 years in prison and a possible $250,000 maximum fine.
Adams was permitted to remain on bond pending sentencing.
The FBI conducted the investigation with the assistance of USDA – Office of Inspector General. Assistant U.S. Attorney Heather Winter is prosecuting the case.
Armored car robbers indictedRead the Press Release
HOUSTON – Three individuals are now in custody in relation to the recent Comerica Bank armored car robbery in Houston, announced U.S. Attorney Jennifer B. Lowery.
Malinda Cruz, 35, Houston, is expected to make her initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m. today. Law enforcement took her into custody April 22 following a federal indictment returned April 20.
Previously arrested via criminal complaint were Randy Long, 30, and Carl Johnson, 34, both also of Houston. They have been in custody and are expected to make an appearance on the new charges in the near future.
All are charged with aiding and abetting interference with commerce by robbery. Long and Johnson also face charges of aiding and abetting the discharge of firearm.
The charges stem from an armored car robbery that occurred in late March.
“After the armored car robbery and shoot-out occurred, the FBI Violent Crime Task Force and our law enforcement partners worked nonstop to arrest all three alleged suspects demonstrating the critical role that continuous law enforcement collaboration plays in restoring peace in our communities in a concise manner,” said FBI Special Agent in Charge James Smith. “The FBI appreciates our law enforcement partners, especially those at the Harris County Sheriff's Office (HCSO), Houston Police Department (HPD), Texas Department of Public Safety and Bureau of Alcohol, Tobacco, Firearms and Explosives, who are equally committed to combating violent crime.”
On March 23, a Brinks armored car courier was servicing the ATM of the Comerica Bank located at 855 FM 1960 in Houston, according to the charges. Long was allegedly carrying a firearm and approached the courier along with Johnson. The charges allege an exchange of gun fire occurred between the three men, during which time the courier shot Johnson in the thigh. Long and Johnson were able to get away, according to the allegations.
During the robbery, Cruz allegedly acted as a look-out and scout during the robbery and was the get-away driver.
The indictment further alleges Johnson aided and abetted interference with commerce by robbery and aided and abetted the brandishing of a firearm in relation to the robbery of an armored car Jan. 7. The courier had been servicing an ATM located at a Bank of America in Houston according to the charges. Johnson allegedly brandished a firearm and stole the cassettes and money bags from him as he was completing his job.
Aiding and abetting interference with commerce by robbery carries a penalty of up to 20 years in prison. Aiding and abetting the discharge of a firearm and aiding and abetting the brandishing of a firearm carry minimums of 10 and seven years, respectively, and up to life which must be served consecutively to any other prison term imposed.
FBI, HCSO and HPD conducted the investigation. Assistant U.S. Attorney Jill Stotts 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.
Edinburg woman sentenced for importing nearly 25 kilos of heroinRead the Press Release
McALLEN, Texas – A 29-year-old Edinburg resident citizen has been ordered to prison for importing more than $827,000 in heroin, announced U.S. Attorney Jennifer B. Lowery.
Amanda Zaragoza pleaded guilty July 29, 2021.
Today, Judge Micaela Alvarez ordered Zaragoza to serve 65 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Zaragoza had been previously involved in successful drug trafficking incidents, had extensive contacts within the drug trafficking organization and significant mental health and substance abuse issues. In handing down the sentence, the court noted that she played a significant part in the movement of controlled substances into the United States from Mexico.
On May 17, 2021, Zaragoza attempted to pass through the port of entry located in Pharr while driving a grey Volkswagen sedan. After she made a negative declaration, a K-9 alerted authorities to narcotics in the tires of the vehicle. Inside, an X-ray inspection revealed a total of 24.49 kilograms of heroin.
The drugs have an estimated street value of $827,259.
Zaragoza 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.
Brownsville woman handed significant sentence for importing $1.4M in methRead the Press Release
McALLEN, Texas – A 54-year-old woman has been sent to federal prison for illegally importing approximately 76 kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Ana Luisa Ponce pleaded guilty Nov. 1, 2021.
Today, U.S. District Judge Micaela Alvarez ordered Ponce to serve 262 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard Ponce had admitted to previously transporting narcotics for the same drug trafficking organization. In handing down the sentence, the court noted that Ponce, who has a significant prior criminal record, was arrested with a very large amount of a very dangerous drug.
On Aug. 25, 2021, Ponce attempted to cross into the United States through the Hidalgo Port of Entry. She claimed she was planning to visit a friend in Houston, but a K-9 alerted authorities to the presence of narcotics.
At secondary inspection, an X-ray scan revealed anomalies in the gas tank of Ponce’s vehicle. Law enforcement discovered a plastic pouch containing liquid meth weighing approximately 76 kilograms. She ultimately admitted that she knew she was transporting narcotics.
The drugs had an estimated street value of $1.4 million.
Ponce 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 and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Sarina S. DiPiazza prosecuted the case.
Local man sentenced for possessing pornography featuring young childrenRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Corpus Christi resident has been ordered to federal prison for possessing nearly 1300 images of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Camden Chase Plumb pleaded guilty Oct. 5, 2021.
Today, U.S. District Court Judge Drew B. Tipton ordered Plumb serve a total of 190 months in federal prison. The court considered victim impact statements and took into account Plumb’s previous state conviction for indecency with a minor in determining his sentence. Plumb will also serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender and pay $15,000 in restitution to victims.
In June 2017, authorities learned Plumb had sexually abused a minor. The investigation led to the seizure of his cell phone and a computer he had used. Forensic analysis of the devices resulted in the discovery of 1,058 images of child pornography on his cell phone, and 113 videos and 230 images of child pornography on the computer. Both devices included images depicting prepubescent children being sexually exploited.
Homeland Security Investigations conducted the investigation with the assistance of the FBI and Corpus Christi Police Department.
Assistant U.S. Attorneys Dennis E. Robinson and Molly K. Smith prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
“Bored Dude” indicted for attempting to sexually assault nine-year-oldRead the Press Release
McALLEN, Texas – A 19-year-old man residing in San Juan has been indicted on charges of attempted coercion and enticement of a child, announced U.S. Attorney Jennifer B. Lowery.
Originally charged by criminal complaint, a federal grand jury returned the single-count indictment against Jorge Eduardo Naranjo today. He is expected to appear before a U.S. magistrate judge on the indictment in the near future.
According to the complaint, Naranjo began communicating via Kik with someone he thought had a nine-year-old child. Naranjo operated multiple accounts on the site with the username “Bored Dude,” distributed files of child pornography and requested to meet the individual’s “little,” according to the charges.
Naranjo allegedly exchanged multiple messages clarifying his intent to engage in criminal sexual activity with the child. Naranjo traveled to a McAllen hotel and planned to do so, according to the charges. Law enforcement took him immediately into custody upon his arrival.
At his detention hearing following the filing of the criminal complaint, Naranjo was found to be a danger to community and ordered him into custody pending future criminal proceedings.
The FBI 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.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Texas man charged for smuggling 107 aliens in trailerRead the Press Release
LAREDO, Texas – A 29-year-old resident of Elkhart has been indicted for conspiring to transport over 100 non-U.S. citizens, announced U.S. Attorney Jennifer B. Lowery.
A federal grand jury returned the two-count indictment against Daniel Chavez. He was originally charged by criminal complaint. He is expected to appear before U.S. Magistrate Judge Diana Song Quiroga on the indictment in the near future.
According to the complaint, on March 30, Chavez arrived at the Border Patrol (BP) checkpoint on I-35 while driving a tractor trailer. At inspection, a K-9 allegedly alerted authorities to the trailer. Law enforcement opened it found 107 individuals later determined to be undocumented aliens, according to the charges.
If convicted, Chavez faces up to 10 years in federal prison and a $250,000 maximum possible fine.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney David Fawcett 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.
Six indicted for cocaine trafficking following searchRead the Press Release
McALLEN, Texas – Several men are facing up to life in prison for their alleged roles on a cocaine trafficking conspiracy, announced U.S. Attorney Jennifer B. Lowery.
Today, a federal grand jury returned a multi-count indictment against Mexican citizens Oscar Obed Manzanares, 22, Jose Bernardo Gonzalez-Gomez, 55, and Jose Santiago Luna-Duran, 45; Arlando Garcia-Garcia, 40, and Martin Vela-Alanis, 58, both legal permanent residents of Edinburg; and Martin Adrusbel Vela, 35, Edinburg. Vela-Alanis was additionally indicted for allegedly being a felon in possession of a firearm.
Originally charged by criminal complaint, they are expected to appear for their arraignments before a U.S. magistrate judge in the near future.
The charges allege that on March 22, Manzanares traveled into the United States from Mexico in a GMC and park at a local business in McAllen. Luna-Duran then took the vehicle to a property in Edinburg, according to the charges.
There, authorities allegedly observed individuals exchange items between the GMC and a Ford pickup truck. The charges allege Luna-Duran then brought the GMC back to Manzanares at the nearby business, while Garcia-Garcia took the Ford and continued on to a separate residence where he removed a large duffel bag from the truck.
Vela and Vela-Alanis allegedly resided on the property. Garcia-Garcia and Gonzalez-Gomez were also present, according to the charges.
Law enforcement executed a search warrant at the residence where they recovered a duffel bag containing 15 bundles of a white powdery substance, according to the charges. The bundles allegedly field tested positive for cocaine and had a weight of approximately 15 kilograms. The charges also allege they found over $90,000 and a black and gold Colt Model 1911 pistol.
At the same time, Luna-Duran allegedly returned to the business where authorities ultimately detained him as well as Manzanares. A K-9 search of the vehicle resulted in the discovery of bulk cash amounting to over $238,000, according to the charges.
If convicted, each man faces up to life in prison as well as a possible $10 million.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection Air and Marine Operations and the Hidalgo County Sheriff’s Office, and police departments in Hidalgo, Mission, McAllen, Alton, Palmview and Pharr. Assistant U.S. Attorney Peter Brostowin is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Texas man sentenced for smuggling $1.1M of crystal methRead the Press Release
LAREDO, Texas – A 20-year-old Dallas resident has been sent to federal prison for illegally importing approximately 25.16 kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Luke Law pleaded guilty Dec. 1, 2021.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced him to serve a total of 60 months in federal prison to be immediately followed by three years of supervised release. As a condition of his supervised release, Judge Marmolejo ordered the defendant must speak to high schools at least three times a year about avoiding drugs and avoiding the choices he made.
On June 6, 2021, Law attempted to cross into the United States after vacationing in Monterrey, Mexico. Authorities referred his vehicle to the secondary inspection area where a K-9 alerted to the presence of narcotics. An X-ray scan revealed anomalies behind the vehicle’s gas tank. Upon further investigation, law enforcement discovered a total of 29 bundles of meth wrapped in clear tape weighing approximately 25.16 kilograms.
The drugs have an estimated street value of approximately $1.1 million.
Law 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 and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Michael Makens prosecuted the case.
Local felon admits to smuggling nearly 100 in trailerRead the Press Release
LAREDO, Texas – A 49-year-old Desoto man has entered a guilty plea to alien smuggling, announced U.S. Attorney Jennifer B. Lowery.
Dedrick Lindell Coleman pleaded guilty to smuggling 95 non-U.S. citizens in a trailer.
As part of his plea, Coleman admitted that on Jan. 14, he approached the Interstate Highway 35 Border Patrol (BP) checkpoint located on mile marker 29 while driving a tractor trailer. A K-9 unit alerted authorities to the presence of concealed humans and referred him to secondary inspection.
There, authorities found a total of 95 non-U.S. citizens hidden in the trailer. All were determined to be in the United States illegally. At the time of his arrest, authorities also discovered a pistol in Coleman’s possession.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing July 7. At that time, Cruz faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Coleman has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Matthew Isaac is prosecuting the case.
Houstonian set to appear in court for multiple money laundering chargesRead the Press Release
HOUSTON – A federal grand jury has returned an eight-count indictment against a 29-year-old Houston man in relation to a money laundering scheme, announced U.S. Attorney Jennifer B. Lowery.
Baudelaire Idriss Tchouala is set to make his initial appearance today before U.S. Magistrate Judge Yvonne H. Ho at 2 p.m. Authorities took him into custody yesterday.
Tchouala is charged with two counts of conspiracy to commit money laundering, three counts of money laundering and three counts of engaging in monetary transactions in property derived from specified unlawful activity.
According to the indictment, Tchouala owned B.T & Sons which had several bank accounts. From July 1 through Nov. 5, 2018, he allegedly conspired with others to commit money laundering. He withdrew money from his bank accounts that were the proceeds of wire fraud, according to the charges.
If convicted, he faces up to 20 years for the conspiracy to commit and committing money laundering, while the other charges carry a possible 10-year-term of imprisonment.
The FBI conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez 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.
Mexican citizen who bragged about drug activities sent to prisonRead the Press Release
McALLEN, Texas – A 47-year-old non-U.S. citizen illegally residing in Donna has been ordered to federal prison following his conviction of possession with intent to distribute five kilograms of meth, announced U.S. Attorney Jennifer B. Lowery
Jose Alejandro Ramirez pleaded guilty Nov. 13, 2020.
Today, U.S. District Judge J Ricardo Hinojosa ordered Ramirez to serve 130 months in federal prison. Not a U.S. citizen, Ramirez is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the Ramirez played an important role in attempting to distribute the meth in this case.
On Feb. 13, 2020, an undercover federal agent met with Ramirez to negotiate the purchase of meth. At that time, Ramirez provided a sample.
During the exchange, Ramirez bragged about his previous narcotics transporting activities throughout the Rio Grande Valley area. He also talked about his experience in trafficking humans and firearms.
The undercover agent agreed to purchase five kilograms of meth from Ramirez. While enroute to the location for the transaction, authorities intercepted Ramirez’s vehicle and located approximately five kilograms of meth in a backpack within the vehicle.
Ramirez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorneys Amy Greenbaum and Colton Turner prosecuted the case.
Leader of firearms ring convictedRead the Press Release
HOUSTON - The 17th individual involved in a firearms trafficking cell has entered a guilty plea to eight charges related to the scheme, announced U.S. Attorney Jennifer B. Lowery.
Gustavo Gomez-Valenzuela, 49, a Mexican citizen who illegally resided in Houston, admitted to aiding and abetting a false statement on a firearms purchasing form, alien in possession of a firearm, felon in possession of a firearm, conspiracy to possess with intent to distribute a controlled substance, aiding and abetting smuggling goods from the United States, international money laundering conspiracy and illegal reentry after removal.
Gomez-Valenzuela was the leader of a Houston-based gun trafficking cell that was sending firearms to Mexico. As part of his plea, he admitted to providing funds to purchase hundreds of firearms and thousands of rounds of ammunition, smuggling both firearms and ammunition to Mexico, possessing firearms and selling kilogram quantities of meth.
He received the firearms from other individuals in the organization who purchased the firearms from Khalid Abdulaziz, the owner and manager of Zeroed In Armory. While acting in the capacity of a federal firearms licensee in Houston, Abdulaziz sold the majority of the firearms to others charged in this case. Those people have admitted to working with Abdulaziz and making false statements in the purchase of firearms, thereby illegally purchasing them.
Abdulaziz previously pleaded guilty to six counts of aiding and abetting a false statement on ATF Form 4473.
As a result of the scheme, approximately 500 firearms were purchased and ultimately trafficked to transnational criminal organizations in Mexico.
Assistant U.S. Attorneys Jennifer Stabe and Lisa M. Collins prosecuted the case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Force (OCDETF) operation with the assistance of Homeland Security Investigations, IRS – Criminal Investigation, Houston Police Department and the Harris County Sheriff’s Office. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Houstonian sent to prison for sexually exploiting young relativeRead the Press Release
HOUSTON – A 36-year-old man has been ordered to prison for production and distribution of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Richard Reyes Trigo pleaded guilty Sept. 22, 2021.
Today, U.S. District Judge Jeffrey Brown sentenced Trigo to 360 and 240 months for the production and distribution convictions, respectively. They will run concurrently for a total 30-year-term of imprisonment. At the hearing, the court also heard additional information that detailed the serious and damaging nature of the offense.
In handing down the prison terms, the court noted “the seriousness of the defendant’s actions.” Trigo was further ordered to pay $3000 in restitution to the victims and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Trigo will also be ordered to register as a sex offender.
From July 13-14, 2020, Trigo had been communicating with someone he believed was a person with similar interest in child pornography. Trigo continued to engage in conversations via Kik – a site individuals with a sexual interest in children often frequent.
During this time, Trigo accessed and interacted in a social media forum that contained terms commonly associated with the sexual exploitation of children. In it, he admitted he was sexually active with his two-year-old minor female relative and had performed sexual acts on her. Trigo later sent four sexually-explicit images of the minor, some of which focused on her private area.
Trigo also claimed to be sexually active with an eight-year-old minor relative.
Trigo has been in custody since being determined a danger to the community and a flight risk. He will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorneys Sherin Daniel and Sherri L. Zack prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Tax fraud sends another to prisonRead the Press Release
LAREDO – As the filing deadline for tax season 2021 approaches, a woman has been ordered to federal prison following her conviction of preparing and filing false income tax returns, announced U.S. Attorney Jennifer B. Lowery.
Lisa Gonzalez pleaded guilty Sept. 9, 2021.
Today, U.S. District Judge Diana Saldana sentenced Gonzalez to 12 months and a day in federal prison. Judge Saldana further ordered Gonzalez to pay $301,908 in restitution to the IRS.
At the hearing, the court heard additional evidence detailing that from 2012 to 2015, Gonzalez learned how to conduct her own scheme while working for another tax preparer. That individual was also convicted of the same crime. .
At the time of her plea, Gonzalez admitted she prepared fraudulent tax returns for clients under a business known as BG Tax Service. The false income tax returns resulted in a total loss of $301,908 in tax revenue for the IRS.
In the fraudulent tax returns, Gonzalez made false claims for earned income tax credit, business income losses, child tax credits, farm income, itemized deductions, residential energy credits, general business credits and American Opportunity credits.
Gonzalez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Information conducted the investigation. Assistant U.S. Attorney Adam L. Goldman prosecuted the case.
Lowery appointed U.S. AttorneyRead the Press Release
HOUSTON – Jennifer B. Lowery has taken the oath of office to remain as chief federal law enforcement officer for the Southern District of Texas (SDTX).
“I am extremely grateful to the district judges for allowing me to continue to serve the SDTX and our community,” said Lowery. “It is an honor and a privilege to be the U.S. Attorney (USA). I take pride in our office and the work it does in support of our law enforcement partners, our mutual mission to protect our citizens and hold accountable those who commit federal crimes. Likewise, I am blessed to work alongside the dedicated employees in this district who are devoted to public service and to our office’s core values of professionalism, ethics and civility.”
Lowery was first appointed Acting USA Feb. 22, 2021, upon the resignation of former USA Ryan K. Patrick. Attorney General Merrick Garland then appointed Lowery to be the interim USA Dec. 26 and was to serve in that role for 120 days. The district judges in the U.S. District court for the SDTX then voted to appoint Lowery as U.S. Attorney until the appointment and qualification of a successor to the SDTX as provided by law.
Chief U.S. District Judge Lee H. Rosenthal administered the oath of office April 7.
Lowery joined the SDTX in 2008, but has been with the Department of Justice since 2000. She first served as a Special Assistant U.S. Attorney and then an Assistant U.S. Attorney (AUSA) in the Eastern District of Texas. During this time, she was detailed to Washington D.C. and New York, New York, as a hearing officer for the 9/11 Victims’ Compensation Fund. She later worked in Washington D.C. in the Office of the Deputy Attorney General and Executive Office for US Attorneys, in both their Counsel to Director’s Office and General Counsel’s Office.
While with the SDTX, Lowery has served as AUSA in the Major Offenders, Fraud and Organized Crime Drug Enforcement Task Force Sections. She has also held the titles of First Assistant USA, Executive AUSA, criminal chief, deputy criminal chief of the Program Fraud Section, acting deputy criminal chief of the Major Fraud Section, senior litigation counsel and ethics advisor.
Prior to her federal service, Lowery was an Assistant Criminal District Attorney in the Jefferson County District Attorney’s Office for eight years where she prosecuted hundreds of cases, including four capital murders. She served as a grand jury attorney, drug intake lawyer, drug diversion lawyer, misdemeanor chief and attorney and felony attorney.
Lowery holds a B.A. from Texas State University (formerly Southwest Texas State University) and a J.D. from South Texas College of Law in Houston.
Lowery was honored to have her mother, niece, mentor, members of the judiciary and bar and various employees of the SDTX in attendance as she took the oath of office.
Pursuant to Vacancy Reform Act, the second in the chain of command, generally the First USA, automatically begins serving as Acting USA upon exit of a presidentially-appointed USA and serves for up to 300 days. If a new USA is not in place by that time, the Attorney General has the authority to name an interim USA to serve for up to 120 days. At that time, if no one has been presidentially-appointed to that position, the district judges vote to name someone as USA until the appointment and qualification of a successor as provided by law.
The SDTX is among the busiest in the nation. With more than 200 attorneys, the office serves more than nine million people in 43 counties from Houston to the Mexican border and prosecutes more federal criminal cases than most other districts. The SDTX currently comprises seven divisions with federal district courts in Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo.
Laredo man sentenced for attempting to smuggle assault rifles into MexicoRead the Press Release
LAREDO, Texas – A 29-year-old local 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.
Manual Dominquez, Laredo, pleaded guilty Aug. 12, 2021.
Today, U.S. District Judge Diana Saldana ordered he serve 87 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the Judge noted Dominguez’s violent criminal history, the cache of weapons and ammunition in his home and the fact he was attempting to smuggle high-powered rifles into Mexico.
Dominquez was taken into custody following an undercover operation in May 2021. Someone in Mexico had sent him to pick up two Barrett .50 caliber rifles at a Home Depot parking lot. Upon arrival, Dominguez inspected the firearms and provided three stacks of $9,900, wrapped in rubber bands.
Dominguez loaded the first firearm into the back seat of his car, at which time he was taken into custody. Authorities conducted a search at his residence where they found more firearms and over 6,000 rounds of ammunition.
The rifles were intended to go to members of the Cartel De Norte, a violent drug cartel in Mexico.
Dominguez was previously convicted in Webb County of aggravated assault with a deadly weapon. As such, he is prohibited from possessing firearms or ammunition per federal law.
He was permitted to remain on bond and voluntarily report to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations and the Laredo Police Department conducted the investigation. Assistant U.S. Attorneys Anthony J. Evans and Brandon Bowling prosecuted the case.
RGV tax preparer pleads guilty to preparing false tax returnsRead the Press Release
McALLEN, Texas – A local tax preparer admitted to preparing false and fraudulent tax returns on behalf of taxpayers, announced U.S. Attorney Jennifer B. Lowery.
Linda Lopez was the owner and operator of a tax preparation business known as Premier Tax Solutions, which operated from 2012 through 2022 in and around Mission.
Lopez admitted that in or around February 2017, she prepared a federal tax return for a taxpayer that included multiple instances of false and fraudulent information, including false employee business expenses and false residential energy credit qualifying expenses.
U.S. District Judge Micaela Alvarez set sentencing for July 18. At that time, Lopez faces up to three years in prison and a possible $100,000 maximum fine.
She was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Andrew Swartz prosecuted the case.
More charges filed in HISD corruption probeRead the Press Release
HOUSTON – The former chief operating officer of the Houston Independent School District (HISD) is facing new tax charges in relation to a bribery scheme, announced U.S. Attorney Jennifer B. Lowery.
A federal grand jury returned the 33-count superseding indictment against Brian Busby, 43, and HISD contract vendor Anthony Hutchison, 61, this morning. They are expected to make their appearances before a U.S. magistrate judge in the near future.
Both were originally charged Dec. 14, 2021, alleging they conspired to engage in a bribery scheme. Busby allegedly helped award HISD construction and grounds maintenance contracts to Hutchison in return for cash bribes and hundreds of thousands of dollars in home remodeling. The new charges allege they filed false tax returns that underreported their income – income related to the scheme. Hutchison also overstated cost of goods sold on his returns.
Specifically, Hutchison obtained cash he used to pay bribes to HISD officials by writing company checks to vendors, who cashed the checks and provided the cash to Hutchison. Hutchison falsely stated on the memo line of the checks that they were in payment for work that had been performed on HISD properties. He then caused the checks to be improperly deducted on corporate tax returns as business expenses.
Hutchison also caused his gambling losses to be improperly deducted on corporate tax returns as alleged business expenses his companies incurred on HISD construction or landscaping projects.
Busby concealed his involvement in the bribery scheme by making cash deposits of bribe proceeds into multiple bank accounts and by filing false tax returns that failed to declare the cash bribes and other benefits as income.
To date, five others have pleaded guilty in relation to the scheme - Rhonda Skillern-Jones (former HISD Board of Education president), 39, Houston; Derrick Sanders (officer of construction services), 50, Alfred Hoskins, (general manager of facilities, maintenance and operations), 58, Gerron Hall (area manager for maintenance - south), 48, all of Missouri City; and Luis Tovar (area manager for maintenance - north), 39, Huffman.
As part of their pleas, Hoskins, Sanders, Hall, Tovar and Skillern-Jones admitted to conspiring with Busby and Hutchison to accept Hutchison’s bribes for helping to award, or not interfering in the award of, HISD contracts to Hutchison.
Once Busby and Hutchison learned of the federal criminal probe, they took steps to interfere in the investigation, according to the charges.
Busby and Hutchison are charged with conspiracy, bribery concerning programs receiving federal funds, and witness tampering. Hutchison is further charged with wire fraud. If convicted, they face up to five, 10 and 20 years, respectively, for the conspiracy, bribery and witness tampering charges. Hutchison also faces up to 20 years for each count of wire fraud. The charges added today add possible 3-year-prison terms for each of the tax charges, upon conviction.
All of the charges also carry a $250,000 maximum possible fine.
The FBI and the IRS - Criminal Investigation are conducting the investigation. Assistant U.S. Attorney (AUSA) Robert S. Johnson is prosecuting the case. AUSA Kristine Rollinson is handling forfeiture matters.
Busby and Hutchison are presumed innocent unless convicted through due process of law.
The FBI requests any information the public may have about this scheme or other public corruption crimes affecting the greater Houston community and surrounding areas. Anyone with such information may report it at [email protected] or may submit the information anonymously by phone at 1-800-CALL-FBI or online at Tips.FBI.gov.
McAllen woman pleads guilty to exporting pistols to MexicoRead the Press Release
McALLEN, Texas – A 33-year-old McAllen resident has admitted to illegally exporting firearms and ammunition, announced U.S. Attorney Jennifer B. Lowery.
Brenda Belinda Barba entered a guilty plea to attempting to unlawfully exporting a Glock 9mm pistol, Glock .22 caliber pistol, four Glock pistol magazines and 550 rounds of various caliber ammunition.
On Nov. 29, 2021, Barba attempted to exit the United States at the Anzalduas Port of Entry. At that time, she told law enforcement she had nothing to declare, to include firearms and ammunition.
However, upon inspection of the vehicle, authorities discovered two pistols, magazines and ammunition concealed in her handbag. She admitted she had purchased the firearms at an Academy Sports and Outdoors store and was planning to take them to her family’s ranch in Mexico.
Barba was not a licensed gun exporter and did not have permission to export the guns to Mexico.
U.S. District Judge Micaela Alvarez will impose sentencing July 18. At that time, Barba faces up to 10 years in federal prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending sentencing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Eliza Carmen Rodriguez is prosecuting the case.
Convicted health care fraudsters charged under False Claims ActRead the Press Release
CORPUS CHRISTI, Texas – The owner and administrator of Texas-based Merida hospice and home health entities have been named in a multi-million-dollar whistleblower lawsuit, announced U.S. Attorney Jennifer B. Lowery.
Rodney Mesquias and Henry McInnis, both 51, and formerly from Harlingen, were convicted of criminal health care fraud and conspiracy charges following a lengthy trial in Brownsville on Nov. 6, 2019.
“All health care providers who submit claims to the Medicare program are on notice that when they enroll in Medicare, they are subject to both criminal and civil consequences for the submission of false and fraudulent claims,” said Lowery.
The civil complaint filed today, alleges Mesquias and McInnis conspired to violate the civil False Claims Act by submitting false and fraudulent claims to Medicare for medically unnecessary hospice and home health services. It also alleges they paid illegal kickbacks to Merida medical directors for patient referrals and created false patient medical records in support of the false and fraudulent claims. These included hospice and home health certifications that were material to Medicare payments.
Mesquias and McInnis are currently in the custody of the Bureau of Prisons serving 240 months and 180 months, respectively, for their criminal convictions. Mesquias also has been ordered to pay $120 million in restitution to the Medicare program.
The United States is also entitled to recover triple the damages for violations of the civil False Claims Act as well as civil monetary penalties between $11,803 and $23,607 for each false claim submitted to Medicare.
The Department of Health and Human Services - Office of Inspector General, FBI and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Julie Redlinger is handling the matter.
Sex offender sent to prison for two child pornography convictionsRead the Press Release
HOUSTON – A 40-year-old previous Houston resident has been ordered to federal prison following his admission that he received and possessed child pornography, announced U.S. Attorney Jennifer B. Lowery.
Joshua Tannery pleaded guilty Nov. 16, 2020.
Today, U.S. District Judge George C. Hanks Jr. sentenced him to 97 months in federal prison. At the hearing, the court also heard additional information including a victim impact statement detailing the sexual abuse Tannery committed on a child. The court noted he had a duty to the victims whose voices are not always heard. He hoped the prison term discouraged others from following in his footsteps, gave Tannery the opportunity to change and showed there were consequences to Tannery’s conduct. He will also serve five years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Tannery will also be ordered to register as a sex offender.
In September 2019, law enforcement initiated an investigation of child pornography sharing which led them to Tannery. They executed a search warrant and seized his electronic devices. Forensic analysis resulted in the discovery of child pornography, including images of prepubescent children, some as young as 10 years of age.
Following Tannery’s arrest, a sexual assault victim came forward reporting that Tannery had abused her years ago.
Tannery was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Zahra Jivani Fenelon 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.
Podiatrist pays six figures to settle allegations involving false procedureRead the Press Release
HOUSTON – A 67-year-old podiatrist from Cypress has agreed to pay $865,000 to resolve allegations that she submitted false medical claims for the use of electro-acupuncture devices, announced U.S. Attorney Jennifer B. Lowery.
Dr. Judith Rubin is a podiatrist who practices in Cypress.
From March 1, 2018, to Nov. 30, 2019, Rubin billed Medicare for the surgical implantation of neurostimulator electrodes. This surgical procedure usually requires the use of an operating room. Medicare typically pays thousands of dollars per procedure.
However, neither Rubin nor her staff performed these surgical procedures. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind them with an adhesive.
To date, this is the eighth case the Southern District of Texas has resolved for similar false claims. The other matters included settlements with a Katy anesthesiologist, Laredo pain doctor, Houston pain doctor, Houston chiropractor, Rockport chiropractor, Woodlands pain doctor and Cypress marketing representative.
The U.S. Attorney’s Office conducted the investigation with the Department of Health and Human Services – Office of Inspector General and Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Jury convicts man for crack cocaine conspiracyRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted 26-year-old local man for conspiring to distribute narcotics and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately two hours before convicting Jonathan Rodriguez, Corpus Christi, following a three-day trial.
At trial, the jury heard that Rodriguez was a co-conspirator in a multi-person crack cocaine trafficking scheme. From 2016 to 2019, Rodriguez managed a Corpus Christi residence from where drugs were distributed.
In May 2019, law enforcement responded to reports of gunfire between rival drug dealers at the property. A search of the residence revealed various amounts of crack cocaine and meth.
The jury also heard that Rodriguez had maintained a commercial storage unit in Corpus Christi. A search of the unit revealed $1.26 million in U.S. currency, more than 600 grams of cocaine, 52 rifles, shotguns and pistols.
At trial, the defense attempted to convince the jury Rodriguez was merely a narcotics user, not a distributor and the evidence was insufficient. However, they saw video evidence of Rodriguez distributing narcotics within the house and surveillance footage at the commercial storage unit.
The jury did not believe defense claims and found him Rodriguez guilty as charged.
U.S. District Judge Davis S. Morales presided over trial and set sentencing for June 29. At that time, Rodriguez faces up to life in federal prison and a possible $10 million maximum fine.
Rodriguez has been and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of Corpus Christi Police Department. Assistant U.S. Attorneys John Marck and Dennis E. Robinson prosecuted the case.
Third rapper pleads guilty in drug schemeRead the Press Release
CORPUS CHRISTI, Texas – A third individual has admitted his guilt in a large-scale narcotics distribution operation involving multiple properties throughout Corpus Christi, announced U.S. Attorney Jennifer B. Lowery.
Javon Hicks aka Drank Nitti Kasino, 40, Corpus Christi, pleaded guilty before U.S. District Judge Drew B. Tipton to maintaining a premises to distribute illicit narcotics and possessing a firearm in furtherance of a drug trafficking crime.
Co-conspirator Dwayne Thompson aka Muddy Kasino, 39, and Zackari Williams aka Arm and Hammer Zone, 29, both of Corpus Christi, pleaded guilty to the same charges March 9 and March 30, respectively. Hicks and Thompson forfeited personal items including cars, guns, jewelry and cash valued at more than $123,000 following their pleas.
The conspirators were part of a hip-hop group that produced music under the Kasino World label. They used various houses and apartments throughout Corpus Christi to record their songs and videos. However, the investigation revealed the group members also used the locations to distribute crack cocaine and meth with at least 100 sales per day.
U.S. District Judge David Morales set sentencing for Hicks and Thompson June 1 and June 30, respectively, while Williams will be sentenced June 22.
At their respective hearings, Hicks and Thompson face up to 25 years in prison, while Williams could receive up to a 20-year-term. All three also face a possible $500,000 maximum fine. Each man has been and will remain in custody pending their hearings.
The Drug Enforcement Administration conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department. Assistant U.S. Attorneys Roland Swanson and Dennis E. Robinson prosecuted the case.
Pair arrested for $4M in CARES Act fraud schemeRead the Press Release
HOUSTON – Two individuals have been arrested following the return of an indictment alleging conspiracy to commit and committing wire fraud, announced U.S. Attorney Jennifer B. Lowery.
Law enforcement took Felicia Garza, 36, into custody at her home in Houston. She is expected to make her initial appearance before U.S. Magistrate Judge Cynthia Y. Ho tomorrow at 2 p.m.
Dylan Kinlock, 29, Orlando, Florida was arrested at his home March 30.
The seven-count indictment alleges Garza and Kinlock devised a scheme to solicit others to fraudulently apply for Paycheck Protection Program (PPP) loans the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided. The two allegedly utilized victims’ personal information to create falsified documents and apply for a PPP loan on their behalf.
The false documents allegedly included fictitious Schedule C tax forms reporting profit or loss from a business, 1099-MISC forms and invoices reporting incorrect income to qualify for the loans, according to the charges. Kinlock allegedly solicited each of his victims to execute a contract with him in which they agreed to share a portion of their PPP loans.
The indictment alleges Kinlock participated in at least 241 fraudulent PPP loan applications resulting in the distribution of approximately $4,844,274 of CARES Act money. The indictment alleges Kinlock pocketed nearly $939,379 from the victims for whom he assisted in securing the defrauded PPP loans, according to the charges.
If convicted, Kinlock and Garza face up to 20 years in federal prison and a $250,000 maximum fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Kate Suh and Jay Hileman 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.
Manvel man sent to prison for draining co-workers in investment schemeRead the Press Release
HOUSTON – A 42-year-old Manvel resident has been ordered to prison following his conviction of wire fraud, announced U.S. Attorney Jennifer B. Lowery.
Toan Tran pleaded guilty Jan. 4, 2021.
Today, U.S. District Judge Lynn Hughes ordered Tran to serve 120 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted the blatant, fraudulent scheme and the fact that Tran preyed on his friends and co-workers. Several of the victims testified about the hardships his theft had caused for them and their families. After hearing from several of the victims, Judge Hughes noted the Tran’s “treachery” by stealing from friends and co-workers.
At the time of his plea, Tran admitted that in 2017 he used a fake investment account to convince a local businessman to sell him a media outlet. Tran showed the businessman funds in the account, but they had been altered. They fraudulently displayed $7 million when, in fact, he never had over $100,000 at any one time. Tran subsequently bankrupted the business and defaulted on the payments.
Tran also admitted to using the same scheme to persuade several co-workers to invest in his company from 2015 through 2017. Some victims invested their life savings and never saw any return.
In total, investors lost over $705,000 as a result of Tran’s scheme.
Tran was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI - Texas City conducted the investigation. Assistant U.S. Attorney Thomas H. Carter prosecuted the case.
Huffman resident pleads guilty to unlawfully dealing firearmsRead the Press Release
HOUSTON – A 54-year-old man has admitted to engaging in the sale of firearms without a license, announced U.S. Attorney Jennifer B. Lowery.
Craig Lindsey Cornelison admitted he unlawfully sold at least 200 guns from September 2019 to December 2020.
The investigation began after Cornelison purchased over 90 lower receivers within a four-month period in approximately March 2020. He sold firearms primarily as private sales at gun shows throughout the Houston area. Law enforcement discovered numerous firearms were being trafficked overseas to foreign countries, including Iraq.
The United States seeks to forfeit over 100 firearms that were involved in the unlawful business and approximately $147,747 in proceeds gained from the sales.
U.S. District Judge Andrew Hanen accepted the plea and set sentencing for Aug. 8. At that time, Cornelison faces up to five years in prison and a possible $250,000 maximum fine.
The FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Steven Schammel and Heather Winter are prosecuting the case.
Cartel traffickers sentenced for multi-kilogram drug conspiracyRead the Press Release
LAREDO, Texas – A total of 10 Mexican nationals and associates of Cartel Jalisco Nueva Generacion have been ordered to federal prison for their roles in a conspiracy involving the importation of crystal meth, cocaine, heroin and fentanyl, announced U.S. Attorney Jennifer B. Lowery.
Today, U.S. District Judge Diana Saldana imposed an 80-month-term of imprisonment for Juan Jose Garcia Lerma, 45, Nuevo Leon, Mexico, while Jorge Luis Castellanos De La Mora, 37, Michoacan, Mexico, received 67 months. Not U.S. citizens, they are expected to face removal proceedings following their prison terms.
The other eight received their sentences last week. Roberto Ivan Rodriguez Ramirez, 27, and Manuel Enrique Ayala Rodriguez, 45, both of Nuevo Laredo, Mexico, were each sentenced to 192 months. Giovani Mendez Hornelas, a non-U.S. citizen residing in Angier, North Carolina, was sentenced to 108 months on April 1. Daniel Morales Hinojosa, 52, Santos Salazar, 35, Victor Hinojosa, 36, Omar Hiracheta-Cruz, 38, and Armando Animas Hernandez, 33, were sentenced earlier in the week. Daniel Hinojosa and Salazar were each ordered to serve 262-month-terms of imprisonment, while Victor Hinojosa, Hiracheta-Cruz and Hernandez received 210, 192 and 120 months, respectively. All are also expected to face removal proceedings.
At the hearings, Judge Saldana noted the extensive conspiracy which relied on many truck drivers to succeed. Saldana noted that each played a role that contributed to the smuggling of large amounts of drugs from the Michoacan area into the United States for distribution to cities throughout the United States. Whether truck drivers, stash operators or couriers co-conspirators were in some way responsible for these deadly drugs reaching distribution centers. Daldana noted the horrible effects that such drugs have had in certain regions and populations of the country.
The investigation began in 2017 when authorities identified Juan Manuel Salazar Alvarez as the operator of the conspiracy. Alvarez directed a large-scale organization comprised of truck drivers, stash house operators and transportation coordinators responsible for smuggling fentanyl, heroin, meth and cocaine.
The drugs were concealed in fire extinguishers, wooden blocks, vehicle batteries and hydraulic jacks. The co-conspirators worked as truck drivers to transport the drugs from Michoacán and Jalisco to Nuevo Laredo, Tamaulipas, Mexico, and into Laredo. In Texas, the conspirators stashed the drugs in storage units, tractor trailers or other locations. Drivers then transported the narcotics to distribution centers across the United States including Houston; Dallas; Memphis, Tennessee; Kentucky; and North Carolina.
All have been and will remain in custody pending transfer to a U.S. Bureau Prisons facility to be determined in the near future.
Alvarez will be sentenced at a later date.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Gelo Podre (Rotten Ice) with the assistance of Laredo Police Department, U.S. Marshals Service, Williamson County Sheriff’s Office, Interpol Mexico City and the Mexican National Guard.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Deputy Criminal Chief for the South Texas Organized Crime Drug Enforcement Task Force Mary Lou Castillo is prosecuting the case.
Former deputy sheriff convicted of drug traffickingRead the Press Release
McALLEN, Texas – A former deputy with the Hidalgo County Sheriff’s Office has pleaded guilty to conspiracy to possess with the intent to distribute more than 500 grams of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Baldemar Cardenas, 36, Mission, admitted that in January 2020, he conspired with members of a drug trafficking organization.
Members of the group would receive kilogram quantities of highly-pure cocaine. They would then utilize small portions of the drugs to create sham cocaine with very low purity.
Cardenas would ensure authorities seized the fake bundles. The seizure would allow the co-conspirators to avoid responsibility for stealing the cocaine from their source of supply and allow the distribution of the stolen cocaine for profit.
In order to further the scheme and in exchange for $10,000, Cardenas provided information to law enforcement in order to effectuate the seizure of the sham bundles. Cardenas falsely claimed a confidential source provided the information. Based on the information he gave, law enforcement seized the multi-kilogram sham bundles of cocaine.
Laboratory testing conducted on the bundles revealed a cocaine purity level of only 1.5%.
U.S. District Judge Ricardo H. Hinojosa accepted the plea and set sentencing for June 14. At that time, he faces a minimum of five and up to 40 years in prison. He was permitted to remain on bond pending that hearing.
The FBI and Homeland Security Investigation conducted the investigation with the assistance of the Drug Enforcement Administration, Hidalgo County Sheriff’s Office, and Mission Police Department. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
The plea is a result of Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Muchos Primos. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States. It uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
USAO hosts roundtable on cyberintrusion safety measuresRead the Press Release
HOUSTON – Local critical infrastructure partners and area business owners have participated in a training session to increase cybersecurity posture and awareness on how to tackle such cyberattacks, announced U.S. Attorney Jennifer B. Lowery.
The U.S. Attorney’s Office (USAO), in partnership with Homeland Security Investigations (HSI), hosted the roundtable training today in order to educate private industry partners on what to do in the event of a cyberattack upon their businesses.
“We are excited to partner with HSI and other federal agencies to help protect Houston’s often vulnerable critical infrastructure assets,” said Lowery. “From our international airports, unique power grid and robust oil and gas sector, Houston is home to some of the country’s most valuable assets.”
“As criminal organizations and other bad actors become more sophisticated in their ability to launch cyber-attacks against critical infrastructure and private business, it is crucial for HSI to work closely with our federal partners and the private sector to develop resilient and adaptive defenses against malicious cyberspace activity and network intrusions,” said HSI Houston Special Agent in Charge Mark Dawson. “Hosting today’s roundtable with the USAO was an important step, and we will continue to seek opportunities to enhance collaboration with our law enforcement partners and other stakeholders to prevent potential network intrusions and ensure greater unity of effort in response to cyber incidents.”
On a weekly basis, numerous cyberattacks occur on businesses all across the Southern District of Texas. There must be a quick response team in place to immediately address the intrusion in order to circumvent major damage and losses. The USAO routinely works with other prosecutors and law enforcement in the district to stay ahead of potential cyber threats.
As the global economy enters day 35 of Russia’s invasion of Ukraine, businesses must be reminded to be diligent about their networks and to know their response plans, have a paper copy available and review their cyber-related insurance policies.
The USAO has established contact lines for assistance 24 hours a day. If you have fallen victim to an intrusion, inadvertently diverted funds to an unknown third-party or suffered a ransomware attack, please email directly or call the hotline at 713-542-5213.
Local man gets 40 years for sexually exploiting minors through SkypeRead the Press Release
HOUSTON – A 42-year-old Houston man has been ordered to prison for committing sexual exploitation and coercion and enticement of minors, announced U.S. Attorney Jennifer B. Lowery.
Thomas Douglas Butler pleaded guilty April 14, 2021.
Today, U.S. District Judge Alfred Bennet sentenced Butler to 480 months in federal prison. At the hearing, the court also heard additional information including a statement detailing the severe emotional distress that now exists among the victim and her relatives from the trauma Butler inflicted. “The defendant in this case took advantage of my daughter’s weaknesses and caused her lifelong damage,” it read. The mother further noted her daughter returned home a “very different child.”
In handing down the prison terms, the court noted Butler had been “on a path to this moment based on his criminal history.” Butler will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Butler met the 14-year-old female victim through a social media website known as FaceFlow. During those communications, posed as a 23-year-old male, befriended her and convinced her to run away with him. Butler subsequently traveled to pick her up and broght her to a Houston hotel where he had been residing for approximately one year.
The victim said Butler provided alcohol to her immediately and on numerous occasions while she was with him and gave her very little food. Law enforcement was quickly able to rescue her.
A search warrant executed at the hotel room revealed several documents and electronic devices which led to the discovery of a second out-of-state victim. Butler had also groomed that minor female to engage in sexually-charged conversations and sexually-illicit behavior online such as exposing her genitals in a lewd and lascivious manner during Skype video calls. Butler recorded the Skype calls with the victim. If she did not comply, Butler threatened to notify the victim’s parents or others of their relationship and distribute the videos he created from the Skype calls.
Butler has been in custody since being determined a danger to the community and a flight risk, where he 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.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Donna man sentenced for hostage taking during smuggling attemptRead the Press Release
McALLEN, Texas – A 23-year-old local resident has been ordered to federal prison after holding two men against their will and demanding ransom, announced U.S. Attorney Jennifer B. Lowery.
Miguel Angel Castillo pleaded guilty Jan. 29, 2021.
Today, U.S. District Judge Randy Crane sentenced him to 240 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted this was Castillo’s third time in federal court following two prior convictions for alien smuggling. Further, the instant offense occurred while Castillo was on federal probation.
In August 2019, two men illegally entered the United States in hopes to reunite with their families in New Jersey and California. As part of the smuggling attempt, they stayed at Castillo’s stash house in Donna.
From Aug. 1-15, 2019, Castillo held the men against their will and forced them to call their family members to request ransom monies. Castillo threatened both men with a firearm and said he would kill them if they did not comply.
One victim’s family members paid over $6,000 ransom for his release.
On Aug. 15, 2019, the two men were transported to a motel in Donna. There, they were eventually able to obtain a phone and call for help.
Castillo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance from the Donna Police Department. Assistant U.S. Attorney Michael Mitchell prosecuted the case.
Armed career criminal heads to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 54-year-old Corpus Christi man has been ordered to federal prison following his conviction of possession of a firearm by a convicted felon, announced U.S. Attorney Jennifer B. Lowery.
Fabian Garcia Ramos pleaded guilty Dec. 2, 2021.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Ramos to a 180-month term of imprisonment to be followed by three years of supervised release. At the hearing, the court heard that a motorist was placed in fear of his life – seeing Ramos with a rifle pointed at his vehicle followed by a gunshot. In handing down the sentence today, the court determined Ramos to an armed career criminal.
On April 30, 2021, law enforcement received reports of gunshots fired towards heavy traffic on U.S. Highway 181 near Portland and responded to the scene. There, they found Ramos nearby in a vehicle. He attempted to flee, but authorities stopped him after a short pursuit.
Upon searching his vehicle, they found cocaine, U.S. currency, over 160 rounds of ammunition, two rifles and one loaded .380 caliber pistol. The Remington rifle was also in violation of federal firearms regulations for a shortened barrel.
Ramos had previously been convicted in state court for numerous felonies, including aggravated robbery and burglaries. As such, he is prohibited from possessing firearms or ammunition per federal law.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation with the assistance of the Portland Police Department and Corpus Christi Police Department. Assistant U.S. Attorney Reid Manning prosecuted the case.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Man sent to prison for preparing false income tax returnsRead the Press Release
HOUSTON – A local man has been ordered to federal prison following his convictions of preparing and filing false income tax returns, announced U.S. Attorney Jennifer B. Lowery.
Mario Clark pleaded guilty Jan. 13.
Today, U.S. District Judge Gray H. Miller sentenced Clark to 25 months in federal prison to be immediately followed by one year of supervised release. At the hearing, the court heard additional evidence about Clark’s criminal history, which included convictions for murder, battery and aggravated robbery. Judge Miller further ordered Clark to pay $203,336 in restitution to the IRS.
At the time of his plea, Clark admitted that he prepared fraudulent tax returns for clients under a business known as Precision Tax Group. The false income tax returns he prepared for himself and others caused a total loss $203,336 in tax revenue from the IRS.
In both tax returns prepared for himself and others, Clark made false claims for business income loss, unreimbursed employee expenses, itemized deductions, and gifts by cash or check.
IRS-Criminal Information conducted the investigation. Assistant U.S. Attorneys Charles J. Escher and Adam L. Goldman prosecuted the case.
Brownsville man ordered to prison for exploiting 4-year-oldRead the Press Release
BROWNSVILLE, Texas – A 21-year-old local man has been sent to federal prison for production of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Marcos Daniel Gomez pleaded guilty Oct. 27, 2021.
Today, U.S. District Judge Rolando Olvera Jr. sentenced Gomez to serve 192 months in federal prison. At the hearing, the court heard additional information including a statement from the victim’s mother detailing the pain and overwhelming sadness brought about by Gomez’ abuse. Gomez will serve 30 years on supervised release following the completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
From June 1 to 20, 2020 Gomez solicited a four-year-old boy to engage in sexually explicit conduct which he recorded with his cell phone.
Gomez 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 – Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano 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.
Virtual reality event company resolves ADA complaintRead the Press Release
HOUSTON - Infinity Experiences Inc. has reached an agreement under Title III of the Americans with Disabilities Act (ADA) to improve communication regarding physical accessibility, announced U.S. Attorney Jennifer B. Lowery.
The Infinite is a unique 3-D immersive virtual reality space exploration experience. Infinity Experiences Inc. designed The Infinite based on various NASA missions. The event embarked on a world tour starting in December 2021. It will make stops in three cities per year until 2026, the first of which was in Houston.
The investigation began after an individual with a disability complained that the exhibit was inaccessible. The Infinite’s website did not fully disclose to the public how the exhibit was accessible to individuals with disabilities. This potentially deterred them from attending the exhibit.
However, Infinity Experiences cooperated and promptly addressed the issue, immediately agreeing to revise their website to include a detailed FAQ regarding accessibility and the logistics of attending the event.
The investigation was conducted under Title III of the ADA of 1990 which prohibits discrimination against individuals with disabilities by private places of public accommodation. Under Title III, The Infinite is a place of public accommodation and is subject to the requirements of the ADA.
The U.S. Attorney's Office for the Southern District of Texas is committed to vigorously enforcing the ADA and welcomes public comments or complaints. To file a comment or complaint, or to learn more about the ADA, individuals can contact the U.S. Attorney's Office for the Southern District of Texas at (713) 567-9140 or via email.
Assistant U.S. Attorney Elizabeth Karpati and Paralegal Specialist Ray Babauta handled this matter.
Fort Hood soldiers sentenced for role in alien smuggling conspiracyRead the Press Release
LAREDO, Texas – Two soldiers stationed in Texas have been ordered to federal prison for conspiring to transport undocumented aliens, announced U.S. Attorney Jennifer B. Lowery
Isaiah Gore, 21, and Denerio Williams, 22, pleaded guilty Dec. 2, 2021, another co-conspirator Ivory Palmer, 21, pleaded guilty Jan. 10. All are active duty soldiers with the U.S. Army.
Today, U.S. District Judge Marina Garcia Marmolejo imposed a 30-month-term of imprisonment for Gore, while Williams received 24 months. Both must also serve three years of supervised release following their sentences. In handing down the prison terms, Judge Marmolejo noted that Gore and Williams, as soldiers in the Army, were “not the average citizen,” which justified a tougher sentence. Judge Marmolejo also emphasized that everyone involved in the scheme knew that wearing a uniform would assist in evading detection or arrest.
The investigation began June 13, 2021. On that day, authorities caught Emmanuel Oppongagyare and Ralph Gregory Saint-Joie smuggling undocumented aliens in the trunk of a vehicle at the Border Patrol (BP) checkpoint located in Hebbronville. At the time of arrest, both men were wearing their U.S. Army uniforms.
Oppongagyare later admitted Gore recruited them to pick the aliens up from McAllen and drive them to San Antonio. Oppongagyare and Saint-Joie were indicted and pleaded guilty Aug. 11 and 12, respectively, in 2021. Both are currently awaiting sentencing before U.S. District Judge Diana Saldaña.
A joint investigation later confirmed Oppongagyare, Saint-Joie, Williams and Palmer each served a role in the conspiracy as drivers who would travel to locations in Texas to transport the aliens in exchange for money. Authorities further confirmed that Gore actively recruited people to pick up undocumented aliens.
Both Gore and Williams were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Gore has since been discharged from the Army.
Palmer is currently pending sentencing.
Homeland Security Investigations and U.S. Army Criminal Investigations Division conducted the investigation with the assistance of BP. Assistant U.S. Attorneys Brian Bajew and Mark Hicks prosecuted the case.
Former music teacher sent to prison for child pornographyRead the Press Release
HOUSTON – A 56-year-old former Houston resident has been ordered to federal prison after admitting he received and possessed child pornography, announced U.S. Attorney Jennifer B. Lowery.
Robert Gasper Peri pleaded guilty Dec. 9, 2020.
Today, U.S. District Judge Keith P. Ellison sentenced him to 135 months in federal prison. Peri will also serve 10 years on supervised release following completion of his prison terms, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will further be ordered to pay restitution to the victims and will also be ordered to register as a sex offender.
Peri had access to children for more than 30 years as a music teacher.
The investigation revealed he had been communicating and trafficking child pornography with other individuals.
In October 2019, law enforcement learned Peri’s email address was distributing suspected child pornography. Authorities executed a search warrant of his email address and at his residence, at which time they seized various electronic devices.
Forensic analysis resulted in the discovery of 706 images and 143 videos of child pornography including children under the age of five, sadism and masochism.
Peri was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Zahra Jivani Fenelon is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Houston man sent to prison for role in violent abductionRead the Press Release
HOUSTON – A 23-year-old Houston man has been ordered to federal prison for admitting his role in a brutal kidnapping of a woman from her residence in Katy, announced U.S. Attorney Jennifer B. Lowery.
Hipolito Gutierrez pleaded guilty Nov. 26, 2019.
Today, Judge Sim Lake sentenced Gutierrez to a 10-year-term of imprisonment to be immediately followed by five years of supervised release.
At the hearing, the court heard details of the violent abduction in which Gutierrez and Nico Namitle-Morales kidnapped the female victim at gunpoint from her vehicle as she drove into her garage. Gutierrez and Namilte-Morales transported the victim to Dallas and held her captive for three days while demanding ransom payments.
Gutierrez is the last man to be sentenced for his role in the crime. In December 2021, the court ordered Namitle-Morales to serve a 20-year sentence for his role as the main gunman and mastermind of the kidnapping.
Gutierrez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBIconducted the investigation with the assistance of the Harris County Sheriff’s Office and Texarkana Police Department. Assistant U.S. Attorney Matthew Peneguy prosecuted the case.
Head of the Gulf Cartel indictedRead the Press Release
BROWNSVILLE, Texas – Jose Alfredo Cardenas-Martinez aka El Contador has been indicted in the Southern District of Texas on various charges related to his position as the head of the Cardenas family drug trafficking operation known as the Cartel del Golfo, announced U.S. Attorney Jennifer B. Lowery.
A federal grand jury sitting in Brownsville returned the nine-count indictment Nov. 10, 2021. Cardenas-Martinez is currently in custody in Mexico pending litigation on the U.S.’s extradition request.
According to the charges, Cardenas-Martinez, 42, has been the head of the Gulf Cartel aka Cartel del Golfo or CDG since 2015. He became CDG’s leader following the arrest and later conviction of Jorge Eduardo Costilla-Sanchez aka El Cos. Costilla-Sanchez was CDG’s leader following the arrest and conviction of Cardenas-Martinez’s uncle - Oziel Cardenas-Guillen. Cardenas-Guillen is currently in federal custody serving his sentence. Costilla-Sanchez was also convicted in the Southern District of Texas and is awaiting sentencing. The Gulf Cartel is headquartered in Matamoros, Tamaulipas, Mexico.
Cardenas-Martinez is charged in an international conspiracy to possess with intent to distribute meth, cocaine and fentanyl. The indictment also alleges he possessed with intent to distribute 50 grams or more of meth, five kilograms of cocaine and 400 grams or more of fentanyl.
As head of the CDG, Cardenas-Martinez allegedly coordinated the shipment of narcotics to the United States for illegal sale across the country. According to the charges, the conspiracy to transport cocaine, meth and fentanyl into the United States began in 2015 and continued through 2021.
“The arrest of Jose Alfredo Cardenas-Martinez serves a tough blow to the Gulf Cartel Organization,” said Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. “It is the culmination of a successful international drug investigation which should disrupt the Gulf Cartel’s ability to smuggle drugs into Texas and other communities.”
“Through the joint investigation from our office in Harlingen, in coordination with our Attaché in Mexico and other partners, we were able to gather significant evidence that was instrumental in the case against “El Contador,” said Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI). “HSI and our law enforcement partners will continue to coordinate to dismantle any suspected transnational criminal organizations that threaten public safety.”
If convicted, Cardenas-Martinez faces up to life in prison and a possible $10 million fine. The indictment also includes a notice of forfeiture of any proceeds he made and property used to facilitate his drug trafficking business.
This prosecution is part of Organized Crime Drug Enforcement Task Force (OCDETF) investigation Cold Blooded. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
The DEA and HSI conducted the joint investigation with the assistance of Border Patrol. The Justice Department’s Office of International Affairs also provided substantial assistance. Assistant U.S. Attorney Karen Betancourt 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.
Group sent to prison for attempted meth distributionRead the Press Release
LAREDO, Texas – Three Texas residents have been ordered to federal prison following their convictions of conspiracy to transport 30.1 kilograms of pure meth, announced U.S. Attorney Jennifer B. Lowery.
Jose Ramon Garcia, 41, and Jorge Armando Lozano, 39, both of Hebbronville, pleaded guilty July 16, 2020, while Rolando Cadena 46, Laredo, pleaded guilty Aug. 14, 2020.
Today, U.S. District Judge Diana Saldaña ordered Cadena to serve a 235-month-term of imprisonment, while Garcia and Lozano received respective terms of 97 and 135 months. They each must also serve five years of supervised release after their term of imprisonment.
In handing down the sentence, the court noted that all three were not young men with poor judgment or drug addictions, but instead had good jobs with no reason to participate in narcotics smuggling. At the hearing, Cadena claimed he had been coerced into pleading guilty and completely denied involvement in the crime. Judge Saldaña reviewed the evidence and said she had “no doubt” he was guilty.
The investigation revealed Cadena, Garcia and Lozano had been discussing the transportation of meth. Ultimately, Lozano coordinated the transfer of 22 bundles of meth from Cadena to Garcia in Laredo.
Garcia then traveled east towards Hebbronville. Authorities subsequently stopped him for a traffic violation near Oilton. At that time, Garcia admitted he was transporting narcotics to Dallas and indicated where they were hidden inside of his vehicle.
Previously released on bond, Cadena was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Lozano and Garcia were permitted to voluntarily surrender in the near future.
Drug Enforcement Administration conducted the investigation with the assistance of the Webb County Constables Office. Assistant U.S. Attorneys Paul Harrison and April Ayers-Perez prosecuted the case.
California ringleader charged in multi-layered fraud schemeRead the Press Release
HOUSTON – A ringleader and his brother-in-law have been indicted for their participation in a multi-state scheme involving mortgage fraud, credit repair and government loan fraud, announced U.S. Attorney Jennifer B. Lowery.
Steven Tetsuya Morizono, 59, Mission Viejo, California, and Albert Lugene Lim, 53, Laguna Niguel, California, set for an arraignment before U.S. Magistrate Judge Sam S. Sheldon today at 2 p.m.
Two others - Heather Ann Campos, 43, and David Lewis Best Jr., 58, both of Houston - are fugitives with warrants remain outstanding for their arrest. Anyone with information about their whereabouts is asked to contact the U.S. Postal Inspection Service at 281-512-8525.
The indictment remains sealed to others charged but not as yet in custody.
The 33-count indictment, returned March 16, alleges Morizono and Lim led the conspiracy. Using the alias Jeff, Morizono was the leader and namesake for the scheme purporting to do business as Jeff Funding, according to the charges. In reality, Jeff funding allegedly operated a multi-layered scheme to defraud mortgage lending businesses, banks, Small Business Administration (SBA) and Federal Trade Commission (FTC).
The indictment alleges co-conspirators recruited clients for credit repair using company names of KMD Credit, KMD Capital and Jeff Funding, among others. They allegedly “cleaned” their clients’ credit histories by filing false identity theft reports with the FTC. After fraudulently inflating client credit worthiness, the co-conspirators fraudulently obtain credit cards, disaster loans and mortgages for themselves and their clients, according to the charges. They were allegedly able to accomplish this through false statements and fake documents.
Morizono and his crew maintained control of the properties purchased in their clients’ names, according to the charges. The purpose, the indictment alleges, was for the purpose of building a real estate portfolio worth millions of dollars and enriching themselves with rental income.
If convicted, Morizono and Lim face up to 30 years in federal prison and a possible $1 million maximum fine.
The Federal Housing Finance Agency – Office of Inspector General (OIG), U.S. Postal Inspection Service, Housing and Urban Development – OIG and SBA – OIG conducted the investigation with the assistance of the FTC – OIG and IRS – Criminal Investigation. Assistant U.S. Attorneys Kate Suh and Jay Hileman 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.
Two admit to trafficking $29M in methRead the Press Release
McALLEN, Texas – Two Houston-area residents have pleaded guilty to possessing with intent to distribute 777 kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Eduardo Figueroa Jr, 26, Cleveland, and Cynara Lucia Sarmiento, 23, Conroe, pleaded guilty to both counts of possession with intent to distribute meth.
Figueroa hired Sarmiento as his personal assistant and tasked her with leasing the warehouse space and forming Hive Logistics, a business warehouse located in Houston.
On May 12, 2021, authorities executed a search at the location and discovered 777 kilograms of meth, 10 kilograms of cocaine, ledgers, two pistols and five magazines. The meth was located inside metal barrels marked as mango puree.
As part of the plea, Figueroa admitted the meth was part of a larger shipment he had received, of which approximately 800 kilograms had already been delivered to several individuals. Sarmiento admitted to creating a ledger for the drugs and delivering them on at least one occasion with Figueroa.
The estimated street value of the meth is $29 million.
Sentencing has been set for June 1 before U.S. District Judge Ricardo H. Hinojosa. At that time, Figueroa and Sarmiento each face up to life in prison and a possible $10 million maximum fine.
Figueroa has been and will remain in custody pending that hearing, while Sarmiento was permitted to remain on bond.
This case is part of an exportation and straw purchasing of firearms investigation from March 2021 in which where Figueroa was identified as a recruiter. He also pleaded guilty to conspiracy to straw purchase five shotguns on Nov. 22, 2021.
Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney M. Alexis Garcia is prosecuting the case.
Mother and son indicted for dealing counterfeit goodsRead the Press Release
LAREDO, Texas – A South Korean woman and a local Texan have been indicted for trafficking counterfeit goods, announced U.S. Attorney Jennifer B. Lowery.
A federal grand jury returned the two-count indictment against Bok Nyo Kim, 72, a legal permanent residing in Laredo, and Henry Yuseok Kim, 45, Laredo. Both were originally charged by criminal complaint. They are expected to appear before U.S. Magistrate Judge Diana Song Quiroga for their initial appearance on the indictment in the near future.
The investigation began Feb. 3. At that time, Henry Kim, part-owner of Fashion Outlet, allegedly sold a counterfeit t-shirt purporting to be Louis Vuitton. Authorities then seized approximately 346 items of counterfeit merchandise from the store, according to the charges. The indictment alleges that during the seizure, Bok Kim identified herself as part-operator of Fashion Outlet.
According to the complaint, both admitted to selling counterfeit clothing at Fashion Outlet for financial gain and shared control over the business. Bok Kim allegedly admitted to purchasing counterfeit merchandise from wholesalers in California. The indictment further alleges both individuals had knowledge of a prior seizure notice authorities had sent.
If convicted, both face up to 10 years in prison as well as a possible $250,000 maximum fine.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Matthew Isaac 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.
Jury finds Greek citizen guilty of stealing Social Security benefitsRead the Press Release
HOUSTON - A 68-year-old legal permanent resident of Houston has been convicted of theft of public money, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately 90 minutes before convicting Greek citizen Panagiota Tsigelis following a two-day trial on all 34 counts as charged.
The jury heard that Tsigelis collected benefits intended for a Social Security retiree. However, that individual had passed away in September 2008.
At trial, a Social Security claims representative explained that once a beneficiary passes away, their retirement benefits are supposed to cease. A records review in 2017 showed that the deceased individual was still receiving Social Security retirement benefits directly deposited into his checking account.
The jury also heard from a federal agent who led the investigation and from a local manager from J.P. Morgan Chase bank. According to testimony, Tsigelis claimed she was married to the individual in Greece before he passed away. She said she thought she was still eligible for the benefits as his surviving spouse.
However, she untimely admitted she was never married to him and fabricated relationship because she was scared.
At trial, the defense attempted to convince the jury Tsigelis simply did not understand the rules due to a language barrier and genuinely believed she was entitled to the money. The jury ultimately convicted her as charged.
U.S. District Judge Keith Ellison presided over the trial and set sentencing for June 7. At that time, she faces up to 20 years in federal prison. She could also face loss of her legal status in the United States.
Tsigelis was permitted to remain on bond pending that hearing.
The Social Security Administration - Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Benjamin C. Sandel and Assistant U.S. Attorney Thomas H. Carter prosecuted the case.
Former attorney sentenced for detainee list bribery schemeRead the Press Release
LAREDO, Texas - A 32-year-old McAllen attorney has been ordered to federal prison following his convictions of conspiracy to commit bribery and bribery of a public official, announced U.S. Attorney Jennifer B. Lowery.
Roel Alaniz pleaded guilty April 27, 2021.
Today, U.S. District Judge Fernando Rodriguez ordered Alanis to serve a total of 30 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court noted how the serious violation of his conduct and the series of continuing bribes in return for the alien rosters he received merited some incarceration time.
At the time of his plea, Alaniz admitted he paid immigration detention employees for alien detainee roster lists. Benito Barrientez, 43, Lyford, and Damian Ortiz, 31, Weslaco, were two employees of the Willacy County Regional Detention Center who sold the lists to Roel Alaniz or his sister - Cynthia Alanis, 28, Los Fresnos - who was also an attorney in the Rio Grande Valley.
The detainee lists were from the El Valle Detention Center-Raymondville and the Port Isabel Detention Center-Los Fresnos. They contained names, dates of birth, country of origin and A-numbers of alien detainees. The attorneys would then visit them, or instruct others to do so, in order to solicit them to hire his law firm for representation in immigration proceedings.
Barrientos, Ortiz and Exy Adelaida Gomez, 45, Los Fresnos, were also convicted and are pending sentencing. Each faces up to 15 years in federal prison and possible $250,000 maximum fine. Cynthia Alanis was previously sentenced.
Roel Alaniz was permitted to remain on bond and voluntarily surrender in the near future.
Immigration and Customs Enforcement–Office of Professional Responsibility conducted the investigation with assistance from the Department of Homeland Security-Office of Inspector General and Homeland Security Investigations. Assistant U.S. Attorney Oscar Ponce prosecuted the case.