Southern District of Texas
Press releases recorded for this federal judicial district.
Mexican man charged with assaulting federal officerRead the Press Release
LAREDO, Texas – A 44-year-old non-U.S. citizen illegally residing in Laredo has been charged with assaulting a Border Patrol (BP) agent and unlawfully transporting illegal citizens within the United States, announced U.S. Attorney Jennifer B. Lowery.
Authorities arrested Mexican citizen Ever Gordillo-Cardenas Jan. 30.
Originally charged by criminal complaint, he made his first appearance before U.S. Magistrate Judge Christopher dos Santos Jan. 31, at which time he was ordered into custody pending further criminal proceedings. Gordillo-Cardenas is expected to appear for arraignment on the indictment in the near future.
According to the charges, law enforcement responded to a report of a group of people walking through the brush near La Moca Ranch Jan. 29. At that time, they apprehended three non-citizens while Gordillo-Cardenas allegedly attempted to flee.
A BP agent pursued him, but Gordillo-Cardenas ignored commands to stop, according to the criminal complaint. The agent allegedly drew his taser, and Gordillo-Cardenas went to his knees. However, the charges allege Gordillo-Cardenas threw dirt in his eyes and fled again.
When the agent caught up to the him, Gordillo-Cardenas allegedly reached for the agent’s duty belt and attempted to strike him with his fist.
If convicted, Gordillo-Cardenas faces up to 20 years in prison.
The FBI and BP conducted the investigation. Assistant U.S. Attorney David Fawcett prosecuted 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
Aransas man sentenced for drug conspiracyRead the Press Release
CORPUS CHRISTI, Texas – A 60-year-old man has been ordered to prison following his convictions of conspiracy to distribute more than five grams of meth and possession with intent to distribute 27 grams of meth, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately three hours following a two-day trial before returning a guilty verdict Nov. 23, 2021, on both counts against Ronald Flirt.
Today, U.S. District Judge David Morales sentenced him to a total of 92 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard additional evidence that detailed the Flirt’s criminal history including violent acts and previous convictions for possession of controlled substances with intent to deliver. The court also heard how Flirt violated the terms of his pre-trial supervision prior to being convicted.
On Nov. 17, 2020, authorities were surveilling a known drug stash house when they witnessed Flirt stop at the location. A Drug Enforcement Administration (DEA) agent testified at trial, describing how someone had exited Flirt’s vehicle, entered the stash house and returned to the truck.
Law enforcement then pulled Flirt over and found he had a total of 10 Ziplock bags of meth. They had a total street value of more than $4,000.
Further testimony revealed he tried to deceive authorities when the initially stopped him. However, jurors saw bodycam video in which law enforcement asked Flirt to show him his hands which demonstrated he had one finger missing as he attempted to hide a bag of meth.
The jury also heard that Flirt had a Santa Muerte statue to protect him from law enforcement.
Flirt took the stand and attempted to convince the jury the drugs were solely for personal use and that he intended to smoke an entire ounce of meth. They did not believe those claims and found him guilty as charged.
Flirt 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 DEA and police departments in Corpus Christi and Mathis conducted the investigation. Assistant U.S. Attorneys Christopher Marin and John Marck prosecuted the case.
Authorities seek victims in child exploitation investigationRead the Press Release
HOUSTON – A 37-year-old resident of Cypress remains in custody pending trial on charges of sexual exploitation of children, possession of child pornography and coercion and enticement, announced U.S. Attorney Jennifer B. Lowery and acting FBI Special Agent in Charge Richard A. Collodi.
A federal grand jury has returned a six-count superseding indictment against Patrick Tran, charging him with production and possession of child pornography and coercion and enticement of multiple victims. He is set for his arraignment today at 2 p.m. before U.S. Magistrate Judge Christina A. Bryan.
The charges allege he used a fabricated online persona to entice hundreds of underage females for more than 10 years. He then coerced them to produce and transmit sexually-explicit videos of themselves, according to the allegations.
Authorities are seeking the public’s help in identifying potential underage victims. Law enforcement believes Tran may have asked numerous individuals under the age of 18 to produce such videos and/or engage in sexual conduct while online. Possible contact could have been with his alias – Reggie Smith – or through SnapChat with username Travis_Story20 or via Omegle, according to court records.
If you believe you are a victim or have any information regarding any such potential victims, please fill out the brief secure questionnaire available at www.fbi.gov/patricktran.
Tran was originally charged March 24, 2021, and soon taken into custody. At the time of the detention hearing, the court heard how the case came to the attention of law enforcement. A mother of one of the alleged victims allegedly found her 10-year-old daughter standing naked in front of her iPad. According to testimony, chat communications appeared to show Tran was coercing her daughter into engaging in sexually-explicit conduct.
The court also heard about approximately 4,000 video files containing webcam-based videos of young females engaging in sexually-explicit conduct, many of females under the age of 18. All are allegedly attributable to Tran.
U.S. Magistrate Judge Andrew M. Edison found Tran to be a danger to the community and ordered Tran into custody pending further criminal proceedings.
If convicted, he faces up to life in prison.
The FBI is conducting the investigation.
Assistant U.S. Attorneys Kimberly Leo and Luis Batarse are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Montgomery County man convicted of distributing fentanyl resulting in overdoseRead the Press Release
HOUSTON – A 41-year-old Pinehurst man has entered a guilty plea to distributing drugs that resulted in the serious bodily injury of another Montgomery County man, announced U.S. Attorney Jennifer B. Lowery.
Rhett Dwayne Farrell admitted he supplied fentanyl to the victim.
On Feb. 25, 2020, authorities responded to an individual who was passed out in his vehicle on Highway 249. He was unresponsive and emergency personnel administered NARCAN to revive him. He had overdosed on fentanyl. The investigation revealed he had purchased the drugs from Farrell.
U.S. Senior District Judge Sim Lake accepted the plea and set sentencing for May 26. At that time, Farrell faces a minimum of 20 years and up to life in federal prison as well as a possible $1 million maximum possible fine.
Farrell has been and will remain in custody pending that hearing.
The Texas Department of Public Safety conducted the investigation with the assistance of the Drug Enforcement Administration, Montgomery County Narcotics Enforcement Team and police departments in Katy and Houston. Assistant U.S. Attorney Jimmy Leo is prosecuting the case.
Houstonian who attempted suicide after sexual acts sent to prisonRead the Press Release
HOUSTON – A 47-year-old local man has been ordered to prison for sexually exploiting children, announced U.S. Attorney Jennifer B. Lowery.
Adam Albert Sanchez pleaded guilty July 8, 2021, to production of child pornography.
Today, U.S. District Judge Alfred Bennett sentenced Sanchez to serve 264 months in federal prison. In handing down the prison term, the court noted that the actions of Sanchez have altered the minor victim’s life forever. He added that it will impact all of her relationships going forward and how she raises her children if she ever decides to become a parent. Sanchez was further ordered to pay $3,000 in restitution to the victim and will serve 20 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. He will also be ordered to register as a sex offender.
In February 2020, authorities encountered minor female online as part of an unrelated investigation. Realizing her young age, law enforcement told her to report any inappropriate conduct she had experienced with any adults online to her parents and authorities. They were eventually able to locate the victim’s family and contacted them.
The investigation revealed Sanchez had picked her up near her home in Cypress and took her to a nearby hotel. At that location, he engaged in sexual intercourse with her and recorded it.
When law enforcement examined the minor’s phone, they found images in a hidden album. The images were also located on Sanchez’s phone. They showed him engaging in oral sex with her along with other sexual acts.
Sanchez learned authorities had visited the victim’s home and asked her to delete everything from her phone. Shortly thereafter, he attempted to take his own life and was admitted to a residential treatment facility.
Sanchez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Former top employee of workout supplement manufacturer convicted of misleading consumersRead the Press Release
McALLEN, Texas – A 26-year-old former leader at Science Production Products LLC (SPP) admitted he committed a felony relating to importing and selling misbranded drugs, announced U.S. Attorney Jennifer B. Lowery.
Robert Lance Schuffert, 28, Auburn, Alabama, entered a guilty plea to one count of importing, causing misbranding and distributing misbranded drugs for sale with the intent to mislead and defraud the Food and Drug Administration (FDA) and consumers.
Schuffert admitted SPP smuggled Selective Androgen Receptor Modulators (SARMs) into the United States, such as Ostarine from China. He also admitted the company caused SARMs to become misbranded drugs and sold them to workout supplement brick-and-mortar retailers throughout the United States. This included a retailer located in McAllen.
The FDA has warned against the use of SARMs like those found in SPP’s products. They issued a public safety alert in 2017, which advised consumers against ingesting workout supplement products containing SARMs. The FDA reported that these products were linked to life-threatening reactions, including liver toxicity and increased risk of heart attack and stroke.
As part of his plea, Schuffert also admitted he intended to mislead and defraud the FDA and consumers. He knowingly smuggled mislabeled containers containing SARMs into the United States from China and used false and fraudulent certificates of analysis. He also utilized various consignee names, freight forwarders and private mailboxes to conceal SPP’s true identity and deceived authorities as to the true nature of the smuggled drugs.
U.S. District Judge Randy Crane will impose sentencing May 3. At that time, Schuffert faces up to three years in prison and a possible $10,000 maximum fine.
Schuffert was permitted to remain on bond pending that hearing.
The FDA’s Office of Criminal Investigation and FBI conducted the investigation. Assistant U.S. Attorneys Asha Natarajan and Andrew Swartz are prosecuting the case.
Former football player sentenced in carfentanil overdose death of star athleteRead the Press Release
HOUSTON – A 27 year-old Katy resident and former football star at both Cinco Ranch High School and Rice University has been ordered to federal prison for distributing a deadly synthetic opioid, announced U.S. Attorney Jennifer B. Lowery.
Stuart Mouchantaf pleaded guilty Feb. 20, 2020. At that time, he admitted he distributed carfentanil to a former football star at Rice University with NFL aspirations which resulted in his death.
Today, U.S. District Judge Sim Lake ordered Mouchantaf to serve a total of 144 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard statements from the victim’s mother, sister and father. In handing down the sentence, the court noted the case was one of the more difficult cases he had heard. He added that the sentence was necessary to promote general deterrence from the crime and respect for the law as well as just punishment for the offense.
In March 2018, a Rice University student had failed to report to football practice. Authorities responded to 1900 block of Norfolk where they found the body. They pronounced him dead on the scene. The Harris County Institute of Forensic Sciences conducted an autopsy and determined the cause of death resulted from the toxic effects of carfentanil.
The investigation revealed Mouchantaf provided pills containing carfentanil to the victim which ultimately resulted in his death.
Mouchantaf was a former football player and captain on the Rice football team. A Houston-area native, Mouchantaf had played football at Cinco Ranch High School before attending Rice.
Mouchantaf 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 Houston Police Department led this part of the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation as part of “Operation Be That Guy” with the assistance of U.S. Postal Inspection Service, Drug Enforcement Administration and FBI. Assistant U.S. Attorneys Jason Corley and Robert Stabe prosecuted the case.
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.
South Texan who fled following girlfriend’s arrest sent to prisonRead the Press Release
BROWNSVILLE, Texas – A 36-year-old Brownsville man has been ordered to prison for conspiracy to distribute 15 kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Luis Alberto Gomez pleaded guilty Nov. 23, 2021.
Today, U.S. District Judge Rolando Olvera ordered him to serve 108 months in federal prison to be immediately followed by two years of supervised release.
On Jan. 27, 2021, authorities stopped Vanessa Lee Vasquez, Gomez’s girlfriend,
for a traffic violation. At that time, they searched her vehicle and found a secret compartment with 16 bundles of drugs. They contained 15.18 kilograms of meth with an approximate street value of $45,000.
Additional law enforcement at the scene observed Gomez in a grey BMW pass by the traffic scene and turn around. They followed him to a residence in Brownsville, from where he quickly departed. He attempted to flee the United States via the Veteran’s Bridge into Mexico. There, law enforcement conducted a search of his vehicle and discovered a compartment containing meth.
The investigation revealed Gomez and Vasquez crossed the port of entry from Matamoros, Taumalipas, Mexico, the day prior within two minutes of each other.
At the time of his plea, Gomez admitted he and his girlfriend had gone to Mexico to pick up the drugs. He said he saw law enforcement pull over his girlfriend, panicked and decided to flee to Mexico.
He has been and will remain in custody pending transfer to a U.S. Bureau of prisons facility in the near future.
Vasquez was previously sentenced on Dec. 1, 2021, also to 108 months in prison.
Homeland Security Investigations conducted the investigation with the assistance of the Cameron County Sheriff’s Office. Assistant U.S. Attorney Elena Salinas prosecuted the case.
Louisiana man who came to Texas for drugs and firearm handed significant sentenceRead the Press Release
HOUSTON – A 41-year-old resident of Donaldsonville, Louisiana, has been ordered to prison for nearly 27 years following his convictions on drug and firearms charges, announced U.S. Attorney Jennifer B. Lowery.
A federal jury sitting in Houston convicted Travis Demois Wilson July 28, 2021, following a three-day trial for conspiracy to possess and possession of meth, carrying a firearm during a drug trafficking crime and being a felon in possession of a firearm.
Today, U.S. District Judge Ellison handed Wilson a 262-month term of imprisonment for the drug possession. He also received 60 months for the firearms charge which must be served consecutively to the other sentence imposed. The total 322-month prison term will be immediately followed by five years of supervised release. At the hearing, the court heard Wilson had a lengthy and varied criminal record stemming from 1999.
Judge Ellison commented on the disadvantages Wilson experienced in his life and that it was one of the more serious records he had ever contemplated. “However, the guidelines were the right metric for this defendant,” he said.
At trial, the jury heard Wilson drove from Louisiana to Houston to purchase meth and picked up a Sturm Ruger pistol that morning. Wilson used a contact to set up the drug deal from a Houston area pawn shop.
Further testimony showed that law enforcement had been monitoring the shop and had recordings of the calls setting up the deal. The jury heard about one in which Wilson’s voice can be heard confirming it was going to happen that day. Wilson planned to drive back that evening, but authorities were able to conduct a traffic stop, during which time they searched his vehicle and discovered the drugs and firearm in his personal bag.
Wilson attempted to convince the jury he was not in town to buy narcotics, and the meth belonged to someone else. The jury did not believe his claims and found him guilty as charged.
Wilson has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and FBI and conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Bureau of Alcohol, Tobacco, Firearms and Explosives. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Celia Moyer and Richard Bennett prosecuted the case.
Local man sentenced for $317 million N95 mask scamRead the Press Release
HOUSTON – A 56-year-old Houston resident has been ordered to federal prison for scheming to fraudulently sell 50 million non-existent N95 facemasks to the Australian government, announced U.S. Attorney Jennifer B. Lowery.
Arael Doolittle pleaded guilty July 27, 2021.
Today, U.S. District Judge Lynn N. Hughes ordered him to serve a 54-month sentence. At the hearing, the court heard additional evidence that Doolittle had stolen another person’s identity and forged their signature during the commission of the offense. In handing down the sentence, Judge Hughes noted even though there was no actual financial loss in this case, there are still costs associated with cases like this that victims of frauds suffer.
In early April 2020, Doolittle attempted to sell 50 million 3M N95 respirator masks to the government of Australia. However, he actually did not possess them.
The Australian government was supposed to pay over $317 million for the masks, but authorities disrupted the transaction before it was completed.
Doolittle was also charged and convicted in a separate case for conspiracy to commit wire fraud. In that scheme, he solicited victims to invest in a petroleum trading company. However, Doolittle did not invest their money as promised. He actually used the funds to finance unrelated business and personal expenses. Doolittle defrauded the victims of this petroleum trading scheme out of a total of $1,935,613.95. He was previously ordered to serve a 54-month sentence.
The two sentences are ordered to be served consecutively, resulting in a total of 108 months in prison.
Doolittle 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 Secret Service conducted the investigation of the fraudulent N95 masks. Assistant U.S. Attorney Justin R. Martin prosecuted the case. The FBI investigated the petroleum investment scheme.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic - https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form
Mexican man sentenced for importing multiple drugs into the countryRead the Press Release
McALLEN, Texas – A 32-year-old Mexican citizen has been ordered to prison following his convictions related to the importation of cocaine, meth and fentanyl, announced U.S. Attorney Jennifer B. Lowery.
Jairo Esnid Pina-Carrillo pleaded guilty Dec. 2, 2021.
Today, U.S. District Judge Randy Crane sentenced him to a total of 70 months in federal prison. In handing down the sentence, the court noted Pina-Carrillo appeared to be a trusted member of the drug trafficking organization based on the number of times he admitted to smuggling narcotics and the amount and type of the narcotics.
On the morning of July 27, 2021, Pina arrived at the Anzaldua Port of Entry from Mexico where he was attempting to gain entry into the United States. He presented his Mexican border crossing card and claimed he intended to cross for a job-related duty in Brownsville.
Upon inspection, a canine alerted to Pina’s vehicle. Authorities found a total of five packages of narcotics in a lunch bag and a backpack located inside the vehicle. He expected to be paid $800 per package for importing the drugs.
The drugs totaled approximately one kilogram each of cocaine and fentanyl and three kilograms of heroin. Pina also admitted to importing narcotics on at least six other occasions.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Colton Turner prosecuted the case.
Local man sent to prison for targeting children via InstagramRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi resident has been ordered to federal prison for coercing a child via the internet in order to have sex with her, announced U.S. Attorney Jennifer B. Lowery.
Steven Lopez pleaded guilty Nov. 8, 2021.
Today, U.S. District Court Judge Drew B. Tipton ordered him to serve a total of 151 months in federal prison. Lopez will also serve the rest of his life 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. In imposing the sentence, the court also heard evidence that Lopez continued to communicate with minors while awaiting further criminal proceedings. He must also register as a sex offender and pay restitution to identified victims.
In July 2019, law enforcement learned Lopez had sexually abused a minor and eventually apprehended him. At that time, they seized his cell phone which revealed that Lopez used social media to target a minor for the purpose of having sex. Lopez had also attempted to hide his criminal conduct by deleting certain messages. However, forensic analysis yielded multiple instances of incriminating content.
Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department.
Assistant U.S. Attorneys Molly K. Smith and Dennis E. Robinson 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.
Local felon admits to illegally possessing RugerRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Corpus Christi resident has pleaded guilty to illegally possessing a firearm as a felon, announced U.S. Attorney Jennifer B. Lowery.
Pat Anthony Lacour admitted that on March 15, 2019, he was in possession of a loaded Ruger 9mm caliber, semi-automatic pistol.
On that date, law enforcement pulled him over for a traffic violation. As they approached his vehicle, he appeared to be concealing something in the front passenger side. They also smelled burnt marijuana and asked Lacour to step out of the car.
Authorities then searched the vehicle and found a Ruger 9mm caliber, semi-automatic pistol under the passenger seat. It was loaded with seven rounds of ammunition.
Lacour is a convicted felon for robbery, aggravated assault, assault family violence and deadly conduct discharging a firearm. As such, he is prohibited from possessing firearms or ammunition per under federal law.
U.S. District Judge Drew B. Tipton will impose sentencing on May 11, 2022. At that time, Lacour faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
The Bureau of Alcohol, Tobacoo, Firearms and Explosives conducted investigation with the assistance of Corpus Christi Police Department. Assistant U.S. Attorney Christopher Marin prosecuted the case.
Houstonian sent to prison for fraud schemes totaling nearly $2MRead the Press Release
HOUSTON – A 36-year-old Houston resident has been ordered to federal prison following his convictions of bank and wire fraud in two separate cases, announced U.S. Attorney Jennifer B. Lowery.
Julius Joachim Ohumole pleaded guilty Nov. 12, 2021.
Today, U.S. District Judge Hughes ordered he serve a total of 97 months in federal prison to be immediately followed by five years of supervised release.
At the time of his plea, Ohumole admitted he defrauded Regions Bank of over $1 million. Specifically, he opened a bank account in the name of Mars Construction using false identification documents identifying himself as Kenneth Davis.
Later, he accompanied another individual to Regions who used false identification documents to represent himself as a Regions accountholder. Ohumole asked for this person to be a co-signer on the Mars account, thereby allowing it to be linked to the real person’s account.
In January 2019, Ohumole caused $274,000 to be transferred from that account to the Mars account without permission or authorization. He then wired $273,000 to a bank account in New York and subsequently out of the United States.
In a separate case, Ohumole also defrauded the Teton School District in Idaho. In December 2018, he sent an email falsely representing to be from a construction contractor. In it, he claimed payments should be made to a new bank account.
Ohumole admitted in his plea that this new bank account had nothing to do with the real construction contractor and was actually his Comerica Bank account in Houston.
As a result of his scheme, the Teton School District sent $784,883.71 to Ohumole via his bank account.
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 FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Iranian money launderer and former fugitive sent to U.S. prisonRead the Press Release
LAREDO, Texas – A 51-year-old man who resided in Iran and Laredo has been ordered to prison following his conviction of conspiracy to commit money laundering in a scheme known as the “Black Market Peso Exchange (BMPE),” announced U.S. Attorney Jennifer B. Lowery.
Mohsen Mohammadi-Mohammadi pleaded guilty Dec. 1, 2021.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve a total of 40 months in prison. Not a U.S. citizen, Mohammadi is expected to face removal proceedings following the sentence. In imposing the sentence, the court commented on the seriousness of the offense and Mohammadi’s willing participation in the crime. Judge Marmolejo further ordered the forfeiture of $177,345, the monies his laundered through his business.
From October 2011 to October 2013, Mohammadi and others conspired to launder drug trafficking proceeds. They obtained monies from the sale of illegal drugs in the United States into Mexico using the BMPE, a form of trade-based money laundering. Co-conspirators would launder drug proceeds through international trade. As a result, Mexico-based drug dealers ultimately received their profits in Mexican pesos.
Conspirators would pick up drug proceeds from cities in the United States and transported and/or transferred them to Laredo. There, the monies were laundered through commodities businesses such as perfume sellers. Mohammadi owned such a business known as Mav Trading Inc.
At the time of his plea, he admitted he received drug proceeds as payment for merchandise sold to Mexican businesses.
Businesses that receive more than $10,000 must file a Form 8300. Mohammadi filed such, but they had material omissions and false statements in order to conceal the source and origin of the money.
Following the issuance of an arrest warrant, Mohammadi fled the United States to Iran. He traveled to a variety of places and eventually landed in New York City, New York, where authorities took him into custody. 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 Drug Enforcement Administration and IRS-Criminal Investigation conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation dubbed Operation Zahhak with the assistance of Customs and Border Protection and the U.S. Marshal Service. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, and transnational criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorney José Angel Moreno and Trial Attorney Keith Liddle of the Department of Justice, Money Laundering and Asset Recovery Section prosecuted the case.
Armed drug dealer who sold drugs with child in house pleads guiltyRead the Press Release
CORPUS CHRISTI, Texas – A 30-year-old Corpus Christi man has pleaded guilty to conspiring to possess with intent to distribute meth and carrying a firearm in relation to a drug trafficking crime, announced U.S. Attorney Jennifer B. Lowery.
Authorities executed a search warrant at a residence in Corpus Christi in August 2021. At that time, they arrested Alec Michael Garcia and his co-conspirators. During the search, they found over 50 grams of meth; nearly two kilograms of pills containing fentanyl, alprazolam and meth; LSD; approximately two kilograms of marijuana as well as numerous THC products, 9 firearms, hundreds of rounds of ammunition, body armor, and U.S. currency.
At the time of search, authorities observed an 8-year-old boy at the residence.
Garcia faces a minimum of 10 years in federal prison up to a maximum of life as well as a $10 million fine. For the firearms conviction, he will receive an additional five years that must be served consecutively to any other prison term imposed.
Garcia has been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department’s Gang Unit. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Former La Joya official convicted in bribery schemeRead the Press Release
McALLEN, Texas – The former La Joya Independent School District (LJISD) assistant superintendent of Student Services has admitted to taking $28,000 in bribes, announced U.S. Attorney Jennifer B. Lowery.
Jose Luis Morin, 41, Mission, pleaded guilty today and agreed to forfeit $28,000.
As part of the plea, Morin admitted to receiving approximately $28,000 as bribes beginning in 2019 for his official and favorable recommendations at LJISD. They pertained to energy savings contracts awarded to a company as well as job order contracts and facilitating the processing of pay applications related to those contracts. The LJISD school board subsequently approved the contracts Morin recommended.
U.S. District Judge Randy Crane accepted the plea and set sentencing for April 19. At that time, Morin faces up to five years in federal prison.
He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Agriculture, Texas Department of Insurance and McAllen Police Department. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Texan sentenced for transporting fentanyl and other narcoticsRead the Press Release
CORPUS CHRISTI, Texas – A 41-year-old Houston man has been ordered to prison after conspiring to transport cocaine, heroin and fentanyl into the country, announced U.S. Attorney Jennifer B. Lowery.
Juan Antonio Sanchez Jr. pleaded guilty June 3, 2021, to conspiracy to possess with intent to distribute controlled substances.
Today, U.S. District Judge David S. Morales sentenced him to serve 120 months in federal prison to be immediately followed by five years of supervised release.
The investigation revealed Sanchez hired drivers and passengers to smuggle narcotics to Houston. Sanchez would walk across the Port of Entry to avoid being in the vehicles as they passed through with the narcotics.
On Oct. 23, 2019, authorities intercepted approximately 2.5 kilograms of cocaine in the battery of a vehicle. The investigation determined Sanchez hired that driver to attempt to pass through the Border Patrol checkpoint near Sarita.
Sanchez was also found responsible for two kilograms of heroin and one kilogram of fentanyl found in a vehicle during a traffic stop Dec. 22, 2019.
Sanchez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Native New Yorker sentenced for human transporting conspiracyRead the Press Release
LAREDO, Texas – A 53-year-old resident of Lake Charles, Louisiana, has been ordered to federal prison for conspiring to transport people unlawfully within the United States, announced U.S. Attorney Jennifer B. Lowery.
Carl Bernstein, formerly of Plainview, New York, pleaded guilty Sept. 9.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve a 46-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard from Bernstein, who admitted the money enticed him to commit the crime. Judge Marmolejo also heard more about Bernstein’s criminal history and noted that his extensive criminal record dates back to 1985.
On June 6, 2021, authorities stopped Bernstein for a traffic violation as he was driving a tractor-trailer on State Highway 16 near Tilden. They took him into custody upon learning of active arrest warrants.
He exited the tractor, at which time authorities opened the doors and noticed multiple people inside the trailer. Law enforcement identified a total of 42 people as non-U.S. citizens unlawfully in the country.
Bernstein admitted he expected to be paid for driving the vehicle.
Bernstein will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Montgomery County Sheriff’s Office, Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Brian Bajew prosecuted the case.
La Quarenta gang drug dealers plead guilty in poly-drug conspiracyRead the Press Release
CORPUS CHRISTI, Texas – Four Corpus Christi men have admitted to conspiring to possess with intent to distribute meth, heroin and cocaine, announced U.S. Attorney Jennifer B. Lowery.
Fernando Martinez, 44, Corpus Christi, pleaded guilty today to the conspiracy which spanned from Sept. 6, 2020, to Aug. 26, 2021. Three others - Jayden Wandell Coleman, 18, Carlos Acosta, 38, and Ricky Reyna, 34, all of Corpus Christi - previously admitted to the their roles in the conspiracy. All are identified members of the La Quarenta gang.
The investigation began in September 2020. It revealed the narcotics trafficking organization used a Corpus Christi residence on Cortez Street to distribute meth, heroin, crack and marijuana. Authorities observed Reyna, Martinez, Acosta and Coleman entering and exiting the drug stash house as various times and directing people to the residence.
Over the course of the investigation, law enforcement observed a high amount of foot traffic approach and enter the residence, stay for a few minutes and then exit the area. Traffic stops resulted in the seizure of narcotics they had obtained from the drug stash house.
Authorities also executed search warrants at four residences and a storage yard in August 2021. They ultimately found a total of over five kilograms of cocaine, over four kilograms of meth, more than two kilograms of heroin; nearly 200 grams of crack and 13 kilograms of marijuana and over a hundred thousand dollars, digital scales, a drug ledger, and loaded firearms and ammunition.
The investigation further revealed the four men were in communication with each other regarding the purchase and sale of various narcotics for the duration of the conspiracy.
U.S. District Judge David S. Morales for will impose sentencing April 20. At that time, the four men face a minimum of 10 years and up to life in prison as well as a possible $10 million maximum fine.
They have been and will remain in custody pending that hearing.
Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives; Customs and Border Protection Air and Marine Operations; and Corpus Christi Police Department’s Gang Unit conducted the investigation. Assistant U.S. Attorneys Christopher Marin and John Marck are prosecuting the case.
Former Navy commander headed to federal prisonRead the Press Release
CORPUS CHRISTI, Texas – A 58-year-old Portland man has been sentenced to 19 years in federal prison following his conviction of conspiring to possess with the intent to distribute meth and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Jennifer B. Lowery.
Lance Esswein previously served as the commanding officer of the U.S. Navy Minesweeper U.S.S. Ardent. He was also the risk assessment manager for Nueces County and worked as an adjunct professor at Texas A&M Corpus Christi.
He pleaded guilty Jan. 30, 2020.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Esswein to serve 168 and 60 months for the drug and firearms convictions, respectively. The sentences will be served consecutively for a total 228-month-term of imprisonment. The prison term will be immediately followed by five years of supervised release. In determining the sentence, Judge Jack found Esswein responsible for distributing more than 4.5 kilograms of “ice.”
At the hearing, the court heard additional evidence detailing the reasons for his less than honorable discharge from the U.S. Navy and the termination of his employment with Nueces County. The court also heard Esswein had offered to arrange the murder of two local police officers to prevent their testimony in an unrelated drug case.
Esswein had sold more than 100 grams of meth, after which authorities executed a search warrant at his Portland residence. There, they discovered additional meth and numerous firearms staged around the residence. He also had loaded assault rifles positioned just inside the front door.
The investigation revealed significant additional quantities of meth, other narcotics and firearms at storage units and vehicles Esswein controlled. They found a total of 36 weapons, including stolen firearms and firearms with missing serial numbers.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Truck driver gets significant sentence for human smugglingRead the Press Release
CORPUS CHRISTI, Texas – A 28 year-old San Benito resident has been ordered to federal prison following his convictions for transporting illegal aliens with his tractor trailer, announced U.S. Attorney Jennifer B. Lowery.
Rene Garcia pleaded guilty Aug. 5, 2021.
Today, U.S. District Judge Drew Tipton sentenced Garcia to a total of 41 months in prison to be immediately followed by three years of term of supervised release. In handing down the sentence, Judge Tipton took into consideration the nature and facts of the case and noted Garcia had recently been convicted of transporting illegal aliens.
On May 13, 2021, Garcia arrived at the Falfurrias Border Patrol (BP) checkpoint driving a semi-truck and trailer. A K-9 alerted to the vehicle which prompted authorities to refer him to secondary inspection.
Ultimately, authorities found 51 undocumented individuals in the trailer, hidden among pallets of onions. At least one of them reported that it was hard to breathe and there was no way to escape in the event of an emergency.
Garcia later admitted to making arrangements with someone in San Benito to smuggle the aliens through the Falfurrias checkpoint and onto Houston.
He has been and will remain in custody pending transfer to a Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and BP conducted the investigation. Assistant U.S. Attorney Patrick Overman prosecuted the case.
Texan admits to smuggling people in coffinRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old Galveston man has entered a guilty plea to attempting to smuggle individuals in a flag-draped coffin, announced U.S. Attorney Jennifer B. Lowery.
Zachary Taylor Blood admitted to one count of alien smuggling.
On Oct. 26, 2021, Blood drove a grey van modified to transport caskets into the primary inspection lane of the Border Patrol (BP) checkpoint near Falfurrias.
Authorities observed a coffin in the back of the van and asked what he was transporting. He replied “Dead guy, Navy guy.” However, the coffin was in poor condition and the American flag was taped to the top with packing tape.
Law enforcement then referred him to secondary inspection. There, they discovered two Mexican nationals, both unlawfully present within the United States, concealed inside the coffin.
The two men admitted to paying a smuggler to get them to San Antonio. They claimed that after crossing the river into the United States, they were taken to a parking lot where Blood was waiting for them. He had them get into the coffin and began driving north.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing May 11. At that time, Blood faces up to five years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
BP conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Penitas public servants convictedRead the Press Release
McALLEN, Texas – Two local officials have admitted to their respective roles in a bribery scheme and will forfeit a total of nearly $1 million, announced U.S. Attorney Jennifer B. Lowery.
Penitas chief of staff Andres Morales, 41, Mission, and council member Alex Guajardo, 38, Penitas, pleaded guilty today. As part of the pleas, they have agreed to forfeit $739,910.71, and $202,000, respectively, which they retained as proceeds from the scheme. Morales also admitted to making false statements in connection with the purchase of a firearm.
Both men were convicted of participating in a bribery scheme involving the payment of bribes and kickbacks to public servants and officials. The payments were in exchange for official votes or recommendations in support of granting energy savings contracts at various Hidalgo County political subdivisions.
Morales and Guajardo admitted to receiving over $1 million and $275,000, respectively, and to paying thousands in bribe and kickback payments to others. Those included La Joya Independent School District trustees and an administrator in exchange for their official votes and recommendation of the projects.
In addition, Morales also pleaded guilty to making false representations in connection with a purchase of a firearm. Specifically, he falsely claimed on firearms form 4473 that he had not been convicted of a felony, which, in fact, he had.
U.S. District Judge Ricardo H. Hinojosa accepted the pleas and set sentencing for April 6. At that time, each faces up to five years in federal prison for the bribery-related conviction. Morales also a maximum five-year-term of imprisonment for the firearms offense.
Both men were permitted to remain on bond pending that hearing.
The FBI conducted the investigation with the assistance of the Department of Agriculture, Texas Department of Insurance and McAllen Police Department. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Smuggler that led police on chase sentenced to significant prison termRead the Press Release
McALLEN, Texas – A 37-year-old Sullivan City resident has been ordered to federal prison after harboring individuals illegally in the country in harsh living conditions, announced U.S. Attorney Jennifer B. Lowery.
Emanuel Salinas Pleaded guilty May 14, 2021.
Today, U.S. District Judge Randy Crane ordered he serve a total of 100 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about the harsh living conditions to which the individuals were subjected. Judge Crane also considered the fact that some of them were unaccompanied minors, his record of convictions as well as the vehicle chase, during which he caused a collision.
On Feb. 23, law enforcement was conducting surveillance of a residence suspected of harboring undocumented aliens in Edinburg. There, they observed a silver Jeep Grand Cherokee arrive and park outside the residence. Salinas was later determined to be the driver. Several individuals exited the residence and entered the Jeep, which departed and began travelling northbound before stopping at a parking area in San Carlos.
They attempted to conduct a consensual encounter with Salinas, but he immediately fled. He soon led authorities on a 20-mile vehicular pursuit. He did allow four people to exit the vehicle, but still had two others inside, one of whom was an unaccompanied minor. He then continued traveling in excess of 100 mph while weaving through traffic.
He ultimately collided with another vehicle in Edinburg.
Salinas admitted multiple aliens remained behind at the residence. Authorities discovered an additional 26 people, including another unaccompanied minor. The Edinburg location had foul conditions, to include trash piled up in the rooms and its septic tank overflowing onto the neighboring property.
Salinas has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility o be determined in the near future.
Customs and Border Protection conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Peter Brostowin prosecuted the case.
ID thief who bought personal information with Bitcoin sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Houston man has been ordered to prison after fraudulently purchasing two expensive vehicles using information purchased on the dark web, announced U.S. Attorney Jennifer B. Lowery.
Jay Patrick Morgan pleaded guilty Oct. 21, 2021.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 24-month sentence to be immediately followed by one year of supervised release. Morgan was also ordered to pay $31,409.37 restitution to compensate for damages and the diminished value of the recovered property.
“Today’s sentencing is a reminder that the Secret Service is committed to aggressively investigating and pursuing financial crimes,” said Resident Agent in Charge Brian J. Gibson. “Identity theft investigations remain a top priority for us in our mission to protect this nation’s financial intuitions. The success in this case demonstrates the investigative capabilities of the Secret Service and the collaborative efforts with our law enforcement partners.”
On March 8, 2019, Morgan purchased a 2015 Ford F250 Platinum Edition
pickup truck, valued at more than $59,000. The following week, he also purchased a 2019 Rockwood 5th Wheel recreational vehicle (RV), valued at more than $57,000 from a dealer in the Corpus Christi area. In both instances, Morgan financed the total value of each vehicle by falsely providing the Social Security number and other identifying information of another individual with a similar name.
The victim later contacted authorities after discovering numerous credit inquiries and several new credit accounts he had not requested, including those used to purchase the pickup truck and RV. The investigation confirmed the victim had not opened any of the credit accounts and no payments had been made on any of the accounts. Both the pickup truck and the RV were listed as solen vehicles.
In August 2019, local authorities conducted a traffic stop on the stolen pickup. Morgan was driving.
He admitted he acquired the pickup truck using a Social Security number he had purchased with Bitcoin currency from a site on the dark web. Morgan also admitted to fraudulently using the same information to purchase an RV which he had subsequently sold to another individual.
Morgan 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 Secret Service conducted the investigation with the assistance of police departments in Corpus Christi and Deer Park. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Felon and escapee sentenced for gun crimeRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Corpus Christi resident has been ordered to federal prison after unlawfully possessing a firearm as a convicted felon, announced U.S. Attorney Jennifer B. Lowery.
Jacob Andrew Rosenblum pleaded guilty Sept. 23, 2021.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 77-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional information detailing Rosenblum’s extensive criminal history, including a recent successful escape from local law enforcement custody after being placed under arrest for an unrelated offense.
On March 29, 2021, authorities observed Rosenblum attempting to break into a storage container. As they approached, he fled which led to a brief foot pursuit.
Law enforcement began to detain him, but quickly observed him attempting to move his hands towards his waistband. Officers then located a revolver containing five rounds of ammunition concealed within his waistband area.
They also found to be in possession of multiple locks and a master key. The investigation revealed he had previously used the same key to slip out of custody on a previous occasion and flee on foot.
Rosenblum will return to state custody to serve that sentence and later transferred to a U.S. Bureau of Prisons facility to be determined in the future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Roland Swanson prosecuted the case.
Tri City Bombers sentenced for racketeering crimesRead the Press Release
HOUSTON – Two South Texas men have pleaded guilty and received significant sentences for their convictions related to an ongoing racketeering conspiracy, announced U.S. Attorney Jennifer B. Lowery.
Mike Bueno, 50, Edinburg, and Octavio Muniz, 45, McAllen, admitted their roles in the TCB racketeering conspiracy today and were immediately sentenced.
Today, U.S. District Judge Sim Lake sentenced Bueno 262 months in federal prison, while Muniz received a 151-month term of imprisonment.
In handing down the sentences, Judge Lake found Bueno to be a ranking member of the Tri City Bombers (TCB). The court noted his involvement in an ongoing marijuana trafficking conspiracy, a carjacking and a home invasion burglary that resulted in the death of the homeowner. The homeowner’s son was also shot, but survived and was present in court for today’s hearing.
The court found Muniz to be involved in the distribution of marijuana and an attempted murder of a woman the enterprise was hired to kill. The victim was shot six times, but survived.
The TCB is a national gang active in multiple states that was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. The TCB have an organized decision-making hierarchy, including a person in charge of each city and leaders within the organization who determine whether its members violated the gang’s rule and deserved punishment. To instill loyalty, including participation in gang’s criminal activities and adherence to its strict rule structure, TCB leaders determine and order the severe beating of members and associates for acts of disobedience or non-observance of TCB rules.
The scope of the TCB’s crimes is wide-ranging and consistent in its nationwide operation. This RICO conspiracy includes murder, attempted murder, drug trafficking, firearm crimes, money laundering and other crimes in furtherance of the organization’s enterprise. The TCB brought money into the gang through murders, drug trafficking, home invasion robberies and money laundering.
To date, 25 individuals have been convicted in the case.
Bueno and Muniz have been in custody since their arrests and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI led the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Bomb Disposal,” along with IRS-CI, Drug Enforcement Administration, Customs and Border Protection, Texas Alcoholic Beverage Commission, Hidalgo County Sheriff’s Office and police departments in McAllen, Mission, Edinburg, Weslaco and Pharr. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald of the Southern District of Texas are prosecuting the case.
Marijuana smuggler who crossed the river in a floating truck sent to prisonRead the Press Release
BROWNSVILLE, Texas – A 32-year-old local man has been ordered to federal prison for possession with intent to distribute more than 100 kilograms of marijuana, announced U.S. Attorney Jennifer B. Lowery.
Carlos Torres, Brownsville, pleaded guilty April 15, 2021.
Today, U.S. District Judge Rolando Olvera ordered Torres to serve a 31-month sentence to be immediately followed by two years of supervised release.
On Oct. 21, 2020, authorities observed a white pickup truck floating across the Rio Grande River from Mexico into the United States. After arriving onshore, the vehicle headed north toward a gap in the border fence.
Authorities noticed a male, later identified as Torres, driving the truck and activated the emergency lights to conduct a vehicle stop. He drove the vehicle into an open field in an attempt to flee, but eventually drove off a small embankment into a water-filled sandpit. Authorities searched the truck and found 17 bundles of marijuana weighing 184.47 kilograms.
The drugs had an estimated value of $325,360.
Torres has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
Alleged robber arrested after high-speed chase that led to fatal crashRead the Press Release
HOUSTON - A 27-year-old Houston resident is now in custody following charges he robbed a CVS and an Exxon Mobil, announced U.S. Attorney Jennifer B. Lowery.
The criminal complaint, filed today, charges DaVonte Williams with interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence. He is currently in federal custody and set for initial appearance before a U.S. magistrate judge Tuesday, Jan. 18 at 2 p.m.
According to the charges, Williams robbed a CVS on Tidwell shortly after doing same at an Exxon Mobil on Eastex Freeway late Jan. 12. Williams allegedly entered the CVS wearing a red ski mask, pointed a handgun at an employee and demanded cash. He then exited the store and entered a Lincoln Town car, according to the charges.
The complaint alleges law enforcement attempted to stop the vehicle, but the driver refused and began a high-speed chase. Eventually, another vehicle was struck which resulted in injuries and deaths, according to the charges. However, the Lincoln Town Car allegedly continued to flee and escaped.
The investigation led to Williams and the suspect Lincoln Town Car, according to the charges.
Authorities later located him and took him into custody.
If convicted, he faces up to 20 years in federal prison for the robbery. Upon any conviction relating to the gun charges, he must also serve a minimum of seven years that must be served consecutively to any other prison term imposed.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Harris County Sheriff’s Office; Houston Police Department and the Texas Department of Public Safety - all members of the Crime Gun Strike Force - conducted the investigation. Assistant U.S. Attorney Jill Stotts is prosecuting the case.
This is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Mexican trafficker convicted following two-ton marijuana seizureRead the Press Release
BROWNSVILLE, Texas – A 20-year-old Mexican citizen faces up to life in prison after pleading guilty to conspiring to transport over four thousand pounds of marijuana, announced U.S. Attorney Jennifer B. Lowery.
Jorge Monjaraz-Perez pleaded guilty today.
At the hearing, he admitted he conspired with a drug trafficking organization to move at least 1,886 kilograms of marijuana.
He also acknowledged running a marijuana stash house in Brownsville and that he participated in at least seven drug trafficking events. Law enforcement seized all the marijuana, each ranging between 91 kilograms and 528 kilograms.
U.S. District Judge Fernando Rodriguez Jr. will impose sentencing April 19. At that time, Monjaraz-Perez faces up to life in prison.
He has been and will remain on bond pending that hearing.
The FBI and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.
Meth dealer sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old Rio Hondo resident has been ordered to federal prison after selling large amounts of meth from a Corpus Christi residence, announced U.S. Attorney Jennifer B. Lowery.
Gustavo Adolfo Garcia pleaded guilty Oct. 21, 2021.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 188-month term of imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Garcia’s repeated criminal conduct.
In late 2020, law enforcement began investigating narcotics sales out of a home in Corpus Christi.
The operation resulted in several arrests outside the home and led to the identification of Garcia and others who were selling various drugs out of the residence.
On Dec. 29, 2020, authorities conducted a search and discovered 3.198 kilograms of pure meth, 518.93 grams of cocaine and other controlled substances.
Garcia took responsibility for the all the meth found in the home. He also admitted he had sold it through the back door of the residence.
Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of police departments in Corpus Christi and Robstown. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Conroe man charged with funneling money to IndiaRead the Press Release
HOUSTON – A 48-year-old local man has been taken into custody on charges of obtaining over $600,000 from elderly victims throughout the country, announced U.S. Attorney Jennifer Lowery.
Authorities arrested Anthony Munigety, 48, today. He is expected to make his initial appearance before U.S. Magistrate Judge Edison at 2 p.m. Also charged is Ravi Kumar of Noida, India. He is believed to be in India and considered a fugitive. A warrant remains outstanding for his arrest.
A federal grand jury returned a 20-count indictment Dec. 15, 2021.
According to the allegations, the fraud ring operated out of the Conroe area and other locations in the United States and India. Munigety, Kumar and others allegedly committed various fraud schemes targeting primarily elderly victims throughout the United States.
The primary objective, according to the indictment, was to deceive victims by telling them a technical support company or other entities were purportedly helping them with their computers. They would allegedly trick victims into believing they had been erroneously refunded or overpaid and needed to return the overpayment.
The indictment alleges they were able to gain access to a victim’s computer. This enabled Munigety, Kumar and others to move funds between or wire transfer monies out of their accounts, according to the charges. Once that occurred, Munigety and others would keep a portion of the money and wire the remainder to Kumar in India, according to the charges.
As a result of their scheme, Munigety and others allegedly received over $600,000 from elderly victims.
Munigety and Kumar are charged conspiracy to commit money laundering, 13 counts of wire fraud and six counts of money laundering.
If convicted, they face up to 20 years on each count as well as a possible $250,000 maximum fine.
IRS – Criminal Investigation and FBI conducted the investigation. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the case.
The U.S. Attorney’s Office for the Southern District of Texas is a member of the Department of Justice’s Elder Justice Initiative which combats elder abuse, neglect and financial fraud and scams that target our nation’s seniors.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston man sentenced for role in narcotics and weapons distribution ringRead the Press Release
HOUSTON - A 36-year-old Houston resident has been ordered to federal prison for wire fraud, possession of meth and possession of a firearm by a felon, announced U.S. Attorney Jennifer B. Lowery.
Steven Nguyen pleaded guilty April 27, 2021.
Today, U.S. District Judge Charles Eskridge ordered him to serve a 110-month sentence to be immediately followed by four years of supervised release. At the hearing, the court heard additional information that detailed Nguyen’s long criminal history. In handing down the sentence, Judge Eskridge noted his continued criminal behavior and the serious nature of the offenses.
In October 2019, Nguyen used a victim’s information to apply for a vehicle loan in Georgia. Law enforcement then opened an investigation into Nguyen’s role in a mail theft ring operating in the Houston area.
On April 30, 2020, authorities searched Nguyen’s residence and found approximately two kilograms of meth and 16 firearms, including several semi-automatic rifles equipped with military grade optics.
Nguyen will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The U.S. Postal Service and the Harris County Constable’s Office, Precinct 5, conducted the investigation. Assistant U.S. Attorneys Thomas Carter, Michael Day and Matthew Peneguy prosecuted the case.
Truck driver sentenced for smuggling fentanyl hidden in lime shipmentRead the Press Release
McALLEN, Texas – A 33-year-old Mexican man has been sentenced for importing 4.6 kilograms of fentanyl and 43 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Nestor Carbajal-Alvarez pleaded guilty April 19, 2021.
Today, U.S. District Judge Randy Crane ordered him to prison for 60 months. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the sentencing, the defense argued for a minimal sentence since he was only acting as a “courier” and did not have much knowledge as to the overall drug trafficking scheme. However, the government contended it was a substantial load of controlled substances that could have potentially harmed many citizens.
On Jan. 29, 2021, Carbajal-Alvarez arrived at the Pharr Port of Entry with a shipment of limes. He was eventually sent to secondary inspection where authorities discovered the drugs hidden in the floor of the trailer.
Carbajal-Alvarez admitted he knew his trailer contained narcotics and was delivering them to an unknown individual in McAllen.
The total estimated street value of the drugs was approximately $1,063,500.
Carbajal-Alvarez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection conducted the investigation with the assistance of Homeland Security Investigations. Assistant U.S. Attorney Eliza Carmen Rodriguez prosecuted the case.
La Joya ISD trustee convicted in bribery conspiracyRead the Press Release
McALLEN, Texas – A 42-year-old Penitas resident and La Joya Independent School District (ISD) trustee has admitted to receiving more than $234,000 in bribes, announced U.S. Attorney Jennifer B. Lowery.
Armin Garza admitted he participated in a conspiracy to steer lucrative energy savings contracts at various political subdivisions in Hidalgo County, including La Joya ISD.
In exchange, Garza and other co-conspirators received bribes and kickbacks from subcontractors selected to work on the energy savings contracts. As part of his plea, Garza admitted to using his influence over LJISD employees who were elected officials at other political subdivisions in Hidalgo County. The employees subsequently received promotions or pay raises. They also voted to award or attempted to award the same company energy savings contracts at three other political subdivisions in Hidalgo County.
Garza admitted to receiving at least $234,500 in bribes and agreed to forfeit such amounts as part of his plea.
U.S. District Judge Ricardo H. Hinojosa set sentencing for March 18. Garza was permitted to remain on bond pending that hearing.
The FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Agriculture-Office of Inspector General, Texas Department of Insurance and McAllen Police Department. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Former deputy constable convicted in cocaine conspiracyRead the Press Release
HOUSTON - A 49-year-old Huffman resident has pleaded guilty to conspiracy to possess with intent to distribute more than five kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Alexsander S. Reyes is a former Harris County Precinct 1 deputy constable.
On or about Dec. 5, 2020, Reyes escorted a tractor-trailer in a marked constable vehicle through Houston. They believed it contained 10 kilograms of cocaine.
For his assistance, Reyes received a total of $6000 in cash.
However, the drug load was actually part of an undercover operation and included “dummy” or fake cocaine.
Sentencing has been set for March 22 before U.S. District Judge Charles R. Eskridge III. At that time, Reyes faces a minimum of 10 years and up to life in prison as well as a $10 million maximum fine.
He has been and will remain in custody pending that hearing.
FBI Public Corruption conducted the investigation with assistance of Harris County Precinct 1 Constable’s Office, Houston Police Department and Texas Department of Public Safety.
Assistant U.S. Attorneys Carolyn Ferko and Heather Winter are prosecuting the case.
Clinic owner sentenced in illegal kickback and money laundering schemeRead the Press Release
HOUSTON – A Houston clinic owner has have been ordered to federal prison following her convictions in an illegal kickback and money laundering scheme at a Harwin Drive business, announced U.S. Attorney Jennifer B. Lowery.
Anurag Dass aka Anna Dass, 49, Houston, pleaded guilty to illegal kickbacks and money laundering for her role in the scheme in August 2019.
Today, U.S. District Judge Alfred Bennett ordered her to serve 24 months in prison to be immediately followed by two years of supervised release. She was further ordered to pay $2,242,899 in restitution.
Anna Dass operated A&A Pain and Wellness Center Inc. on Harwin Drive in Southwest Houston along with her brother Ankul Dass. Anna Dass admitted she submitted or caused others to file false claims with the Office of Worker Compensation Programs (OWCP) for patients Stephen Hunt directed to the clinic. Hunt was a former injured employee with the U.S. Postal Service (USPS) who filed his own injury claim with OWCP.
The Dass siblings conspired with Hunt for him to direct injured federal workers to the center for medical treatment and health care services. All three admitted Hunt would receive a fee as payment from the center for each claim OWCP paid. Hunt also charged a fee to injured federal workers he had referred for his representation and services through a company he controlled under the name “Zentec.”
Anna Dass was the manager of Clinical Operations at the clinic, while Anukul Dass was the clinic director. Anna Dass filed false claims for services which were not authorized and not performed by a licensed physical therapist. Anna Dass admitted she received $2,242,899 in reimbursements from the unlawful activity.
Hunt, 70, Waxahachie, and Anukul Dass aka Andy Dass, 44, Houston, were also convicted for their roles in the scheme – each pleading guilty to illegal kickbacks
Previously released on bond, Anna Dass 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 USPS - Office of Inspector General (OIG) and Department of Labor - OIG conducted the investigation. Assistant U.S. Attorneys Michael Day and Kristine Rollinson are prosecuting this case.
Robbery and related assault sends violent gang members to prisonRead the Press Release
CORPUS CHRISTI, Texas - Three Houston gang members have been ordered to federal prison following their convictions of robbery and assaulting at least one customer at a Love’s Travel Stop, announced U.S. Attorney Jennifer B. Lowery.
Christopher Bernard Brown aka Chris and C, 39, pleaded guilty Sept. 30, 2021.
Today, U.S. District Judge David S. Morales handed Brown a 90-month federal prison sentence to be immediately followed by three years of supervised release. He must also pay restitution. At the sentencing hearing, the court heard about approximately 33 related truck stop robberies and numerous employees and customers who were traumatized as a result of Brown’s and others’ actions.
Brown and Thomas Alec Buckley, 26, worked in concert with co-conspirators Wesley Jerome Davis, 28, and Kevin Wilson aka KCosa or KC, 33. They threatened or used physical force towards customers or employees to steal or attempt to steal ATMs and the currency they contained from at least nine Love’s Travel Stops throughout Texas and Louisiana.
The multi-district and interstate Hobbs Act conspiracy occurred between May 29-Sept. 2019. During the robberies, Brown typically served as a scout or lookout while Davis, Wilson, Buckley or others wore masks and gloves and placed straps or chains around the ATMs. Then, a vehicle connected to the chains would accelerate to dislodge the bolted-down machines. Co-conspirators would lift the dislodged ATMs into the waiting vehicle and quickly drive away.
The attempts failed in Angleton, Natalia and Domino. However, the robbery crew was able to obtain monies from the stolen ATMs in Hungerford, Seguin, Lufkin, Cleveland, and Three Rivers as well as Vinton, Louisiana.
In the Three Rivers robbery, co-conspirators came into contact with Love’s employees or customers, at which time Brown stated, “What are you gonna do?!! What are you gonna do?!!” The masked or hooded suspects also made menacing gestures towards the employees. Love’s Travel Stop employees did not intervene with the men for fear of sustaining serious bodily injury.
In Seguin, a good Samaritan attempted to stop the ATM robbery but Davis struck him twice, at which time he fell to the floor and suffered bodily injury from a head wound.
Davis and Wilson pleaded guilty July 29, 2021. Previously, Judge Morales sentenced Wilson to 90 months imprisonment, while Davis was ordered to serve a 60-month sentence. Wilson and Buckley also pleaded guilty in a related robbery case Nov. 22, 2019.
Buckley remains on bond pending sentencing.
Brown 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 sheriff’s offices in Live Oak, Angelina, Brazoria, Wharton, Medina and Cass Counties; and police departments in Angleton, Cleveland, Seguin and Lufkin and Vinton, Louisiana.
Assistant U.S. Attorney Reid Manning is prosecuting the case.
Texan resentenced following terrorism conviction and appealRead the Press Release
HOUSTON – The 27-year-old Spring man convicted of providing material support to a designated foreign terrorist organization has been ordered to prison for 12 years following reversal of original sentence, announced Acting U.S. Attorney Jennifer B. Lowery.
Asher Abid Khan pleaded guilty Dec. 4, 2017, to providing material support to the Islamic State of Iraq and the Levant (ISIL) aka ISIS (the Islamic State of Iraq and al-Sham).
On June 25, 2018, U.S. District Judge Lynn H. Hughes downwardly departed from the U.S. Sentencing Guidelines and ordered Khan to serve a total of 18 months in prison. Following an appeal, the court resentenced him Dec. 23, 2019, again to serve the 18-month term of imprisonment. The government then again appealed to the U.S. Court of Appeals for the 5th Circuit, arguing the sentence was not reasonable for the severity of the offense committed.
That court granted to government’s appeal and ordered the judgment reversed and vacated, and the matter reassigned.
Today, U.S. District Judge Charles R. Eskridge sentenced Khan to 144 months in federal prison to be immediately followed by 15 years of supervised release. At the hearing, the court noted the strong condemnation by Congress regarding this conduct and that a young man died.
“Attempting to travel to wage violent jihad on behalf of ISIS is a serious act which deserves vigorous prosecution,” said Lowery. “The sentence imposed today accurately reflects the gravity of the crime for which Khan was convicted. We, along with the FBI’s Joint Terrorism Task Force, National Security Division and other partners, will continue to work to disrupt those trying to support foreign terrorist organizations here or abroad.”
“This outcome marks the culmination of a lengthy counterterrorism investigation highlighting FBI Houston’s steadfast dedication to our mission to fight all forms of terrorism,” said Acting Special Agent in Charge Richard A. Collodi of the FBI. “Khan pleaded guilty to material support of terrorism for recruiting and facilitating the travel of others to fight and die for ISIS overseas. Today’s sentence provides justice for Khan’s actions.”
The investigation began in 2014 when Khan and his friend, who was living in South Texas, devised a plan to travel to Turkey and then to Syria for the purpose of fighting on behalf of ISIS. Khan had been living with a relative in Australia. Prior to leaving for Turkey from there, Khan told Mohamed Zuhbi, a Turkish-based foreign terrorist fighter facilitator, that he wanted to join ISIS.
Khan provided instructions to his friend on travel and how to reach him once Khan arrived in Turkey. During this part of the planning phase, it was Khan - not his friend - who was in touch with Zuhbi. On Feb. 24, 2014, Khan and his friend met in Istanbul, Turkey. At that time, Khan gave his South Texas friend money, knowing he intended to travel to Syria and join and fight with ISIS.
Khan then departed from the Istanbul Airport in Turkey and returned to the United States after his family tricked him into coming home to Houston because of an alleged hospitalization of his mother.
As soon as Khan returned to the United States, he contacted Zuhbi with the purpose of introducing him to his friend so he could enter Syria and join ISIS as a fighter with Zuhbi’s help. Khan then provided to his friend a Turkish cell phone number for reaching Zuhbi. The following day, Khan’s friend sent an electronic message to Khan indicating he had “been delivered :),” by Zuhbi, but that he was not with ISIS yet. Over the next few months, the friend attended fighter training camps and stayed in touch with Zuhbi and Khan. During that time, Khan offered his friend money and instructed him to try to get to ISIS
On Aug. 11, 2014, the friend finally made it to ISIS with Khan and Zuhbi’s assistance. After September 2014, he had ceased all forms of communications. On Dec. 25, 2014, the friend’s mother received an electronic message explaining that her son had died while fighting.
Australian authorities are prosecuting Zuhbi where he is currently being detained.
Khan has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys (AUSA) Carolyn Ferko and Alamdar Hamdani prosecuted the case with assistance of Trial Attorney Rebecca Magnone of NSD’s Counterterrorism Section. NSD Appellate Attorney Danielle Tarin and AUSA Anna Kalluri handled the appeal.
McAllen man guilty of selling child pornographyRead the Press Release
McALLEN, Texas – A 34-year-old south Texan has admitted he spoke to people who were interested in buying images of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Astro Rey De Leon admitted to possessing child pornography with the intent to sell it on the internet.
Authorities had learned a computer was receiving child pornography. They were able to trace it to De Leon at his residence. He admitted he was actively involved in speaking with individuals who were interested in buying child pornography via applications on his cell phone.
Authorities conducted a search of his phone and discovered he had tried to sell child pornography as recently as a month prior to their arrival at his residence.
U.S. District Judge Crane accepted the plea and set sentencing for March 1, 2022. At that time, De Leon faces a minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine.
De Leon has been and will remain in custody pending that hearing.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Eliza Carmen Rodriguez 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.
Federal agent guilty of aiding drug smugglingRead the Press Release
McALLEN, Texas – A Border Patrol (BP) agent has pleaded guilty to attempting to aid and abet smuggling cocaine through a BP checkpoint, announced Acting U.S. Attorney Jennifer B. Lowery.
Oberlin Cortez Pena Jr., 22, La Joya, pleaded guilty today.
As part of his plea, Pena admitted that on two separate occasions, he helped smuggle over five kilograms of cocaine through the Falfurrias checkpoint. Specifically, he used his knowledge as a BP agent and directed loads through particular checkpoint lanes, further acting as a scout and providing information about the inspection lanes and which one to use. Pena also gave detailed instructions on how to conceal the drugs and tactics to employ in order to distract the canine unit at the checkpoint.
U.S. District Judge Randy Crane accepted the plea and set sentencing for March 1, 2022. At that time, Pena faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine.
Four others individuals have been convicted as part of the investigation. Edwin Alejandro Castillo, 23, Sullivan City; Kristian Nicole West, 32; Corpus Christi, and Jose Luis Duran, 25, and Herbey Jose Solis III, 28, both of Mission, all pleaded guilty to alien smuggling. Castillo also admitted to bribery, while Duran entered an additional plea to conspiracy to commit bribery.
Pena was permitted to remain on bond pending sentencing.
The Department of Homeland Security - Office of Inspector General conducted the investigation with assistance from Customs and Border Protection - Office of Professional Responsibility and BP. Assistant U.S. Attorneys Jongwoo Chung and John Pearson are prosecuting the case.
Guilty pleas entered and HISD official indicted in federal corruption probeRead the Press Release
HOUSTON – The former chief operating officer of the Houston Independent School District (HISD) has been indicted along with another individual, announced Acting U.S. Attorney Jennifer B. Lowery. Several other former HISD officials have also admitted their guilt in the same corruption case.
Law enforcement took former chief operating officer Brian Busby, 43, and HISD contract vendor Anthony Hutchison, 60, both of Houston, into custody today. They are expected to make their initial appearances before U.S. Magistrate Judge Andrew Edison at 2 p.m.
“This investigation and resulting indictments reflect my office’s commitment to rooting out public corruption in the Southern District of Texas,” said Lowery. “We will not stand idly by when there are people in positions of trust who are suspected of such wrongdoing. We will consider any matter our law enforcement partners bring us involving suspected fraud, waste and abuse of power by those in whom we have placed our faith and confidence and work to hold them accountable.”
A federal grand jury returned the indictment Dec. 14, which was unsealed today. Previously filed was a plea agreement former HISD Board of Education president Rhonda Skillern-Jones, 39, Houston, had entered as well as plea agreements by other former HISD officials. Those officials included Derrick Sanders, 50, Missouri City, officer of construction services; Alfred Hoskins, 58, Missouri City, general manager of facilities, maintenance and operations; Gerron Hall, 47, Missouri City, area manager for maintenance (south); and Luis Tovar, 39, Huffman, area manager for maintenance (north).
“Today's arrests and related charges are the result of a lengthy, multifaceted FBI Houston investigation,” said Acting Special Agent in Charge Richard A. Collodi.” Houston taxpayers and the thousands of HISD students, along with their teachers and staff, are the potential victims of this alleged multimillion-dollar public corruption scheme. The FBI will continue to work to hold accountable public officials who fail the citizens of their community by accepting bribes, and those who pay bribes.”
“The indictment of these two individuals alleges the misuse of their positions of trust within our education system,” said Assistant Special Agent in Charge Ramsey E. Covington of IRS-Criminal Investigation (CI). “IRS-CI special agents are committed to protecting the integrity of our system of taxation by investigating individuals who violate the tax laws and related financial crimes.”
The 26-count indictment charges Busby and Hutchison with conspiring 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.
According to the indictment, Hoskins, Sanders, Hall, Tovar and Skillern-Jones conspired with Busby and Hutchison to accept bribes from Hutchison for helping to award, or not interfering in the award of, HISD contracts to Hutchison.
Operating as Southwest Wholesale, Hutchison allegedly entered long-term contracts with HISD to provide grounds maintenance to schools. The indictment alleges that from 2011 to 2020, Hutchison systematically overbilled HISD and inflated bills for services, causing millions of dollars in loss to the school district. Hutchison paid a portion of his fraudulently boosted profits to Busby in the form of cash payments and free home remodeling, according to the charges.
According to the indictment, Hutchison also obtained purchase orders for construction, repair, landscaping and maintenance jobs at particular HISD schools. Hutchison obtained these jobs by paying cash bribes, mostly in the form of kickbacks, to HISD personnel who assisted him in obtaining business with HISD, according to the charges. Those allegedly included Busby, Sanders, Hoskins, Hall, Tovar and Skillern-Jones.
According to the indictment, once Busby and Hutchison learned of the federal criminal probe, they took steps to interfere in the investigation.
Sanders, Hoskins, Hall and Tovar have admitted they helped award, or refrained from interfering in the award of, HISD jobs to Hutchison, typically at Busby’s insistence. As part of her plea, Skillern-Jones admitted that, in return for bribe payments from Hutchison, she caused an expenditure of funds for school landscaping and construction projects to be placed on a 2017 HISD Board agenda and voted to approve it. They were eventually awarded to Hutchison. In her plea agreement, she admitted Busby personally delivered thousands of dollars in bribe payments to her from Hutchison.
During execution of search warrants in 2020 at the homes of Busby and Hutchison, authorities allegedly discovered over $186,000 in cash. The indictment gives notice of the government’s intent to forfeit these sums as proceeds of the charged crimes.
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.
Hoskins, Sanders, Hall, Tovar and Skillern-Jones have pleaded guilty to the conspiracy charges. They face up to five years in prison.
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.
Texan sentenced for attempting to export weaponsRead the Press Release
LAREDO, Texas - A 64-year-old Dallas resident been ordered to federal prison for attempting to export firearms, firearm magazines and thousands of rounds of ammunition to Mexico, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for five hours before convicting Jose Rafael Vasquez July 1, following a two-day trial.
Today, U.S. District Judge Diana Saldana, who presided over the trial and sentencing, ordered Vasquez to serve 63 months in federal prison immediately followed by a three-year term of supervised release. At the hearing, the court heard additional information, including the fact that the firearms bore decorative handles and were quite expensive, which criminal organizations highly prized in Mexico.
In handing down the sentence, Judge Saldana noted Vasquez had also previously purchased a semi-automatic rifle in Garland in 2017 which was later found in Durango, Mexico, after a shootout between Mexican law enforcement and armed criminal groups. Authorities directly traced the rifle to Vasquez as the last known legal purchaser.
On Oct. 15, 2020, Vasquez attempted to exit the United States into Mexico through the Laredo Port of Entry. During initial inspection, law enforcement discovered suspicious bundles zip-tied to the undercarriage of the vehicle. They appeared to contain ammunition.
Further inspection revealed three AK-47 rifles, eight semi-automatic handguns of various calibers, 16 handgun magazines and approximately 4,714 rounds of 7.62 mm ammunition hidden inside his vehicle.
The defense attempted to convince the jury Vasquez did not know about the items inside the vehicle. They did not believe his claims and found him guilty as charged.
Vasquez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Francisco J. Rodriguez and David Fawcett prosecuted the case.
Mail thieves indictedRead the Press Release
HOUSTON – Two men face several charges after allegedly breaking into a blue mail receptacle at the River Oaks U.S. Post Office in Houston, announced Acting U.S. Attorney Jennifer B. Lowery.
Tarek K. Sonnier, 24, Houston, and Monte Drayton, 35, The Bronx, New York, are charged obstruction of correspondence, theft of mail matter and illegal possession of postal keys. They are expected to appearance before a U.S. magistrate judge in the near future.
Both men were previously charged by criminal complaint and remain in custody.
The charges allege Sonnier and Drayton illegally entering the mailbox in the parking lot of the River Oaks Post Office on West Gray Street in Houston and removed mail.
In the early morning hours of Nov. 18 and Nov. 21, a light-colored Chevrolet Camaro with distinctive damage pulled up to the receptable, according to the charges. Two men allegedly exited the vehicle, used an illegally possessed key and loaded all the mail into the vehicle.
Again, in the early morning hours of Nov. 23, what authorities believe to be the same Camaro drove up to the same receptable exited the vehicle, according to the charges. The complaint further alleges two men, later identified as Sonnier and Drayton, were opening the mailbox with what was determined to be a stolen key.
Authorities then took the two men into custody. Upon their arrest, law enforcement allegedly recovered four stolen postal keys.
If convicted, Sonnier and Drayton could face up to 10 years in prison as well as a possible $250,000 maximum fine.
U.S. Postal Inspection Service conducted the investigation along with the FBI, Houston Police Department and members from the Texas Anti-Gang Center. Assistant U.S. Attorney Richard D. Hanes 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.Four more charged in $35M COVID-19 relief fraud schemeRead the Press Release
HOUSTON – A federal grand jury in Houston has returned a superseding indictment against four additional individuals for fraudulently obtaining and laundering millions of dollars in forgivable Paycheck Protection Program (PPP) loans. The Small Business Administration (SBA) guarantees the loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
A total of 15 individuals across two states have now been charged in the conspiracy.
Hamza Abbas, 29, Khalid Abbas, 55, Abdul Fatani, 55, all of Richmond; and Syed Ali, 53, of Sugar Land, are set to make their initial appearances tomorrow before U.S. Magistrate Judge Andrew M. Edison.
According to court documents, Hamza Abbas, Khalid Abbas, Fatani and Ali conspired with others to submit more than 80 false and fraudulent PPP loan applications. They allegedly falsified the number of employees and the average monthly payroll expenses of the applicant businesses. In total, the defendants sought over $35 million in PPP loan funds and obtained approximately $18 million in PPP loan proceeds, according to the charges.
The superseding indictment further alleges they laundered a portion of the fraudulent loan proceeds by writing checks from companies that received PPP loans to fake employees. Those that received checks allegedly included some of the defendants and their relatives. The fake paychecks were then allegedly cashed at Fascare International Inc. dba Almeda Discount Store – a check-cashing company. The superseding indictment alleges that over 1,100 fake paychecks totaling more than $3 million in fraudulent PPP loan proceeds were cashed at Almeda.
Previously charged were Amir Aqeel, 53, and Pardeep Basra, 52, both of Houston; Rifat Bajwa, 53, Richmond; Mayer Misak, 41, Cypress; Mauricio Navia, 42, Katy; Richard Reuth, 58, Spring; and Siddiq Azeemuddin, 42, Naperville, Illinois. Aqeel, Bajwa, Basra, Misak, and Navia are also named defendants in the superseding indictment.
Azeemuddin and Reuth have pleaded guilty for their involvement in the scheme. Four others - Abdul Farahshah, 70, Jesus Acosta Perez, 31, and Bijan Rajabi, 68, all of Houston; and Raheel Malik, 41, of Sugar Land - have pleaded guilty for their involvement in the scheme. Malik pleaded guilty to a one-count information charging him with conspiracy to commit wire fraud and money laundering on Oct. 8. Farahshah, Perez and Rajabi each pleaded guilty to a one-count information charging them with conspiracy to commit wire fraud on Nov. 30.
The defendants in the superseding indictment are all charged with conspiracy to commit wire fraud and wire fraud. Aqeel, Khalid Abbas, Ali and Fatani are also charged with money laundering. Aqeel is also charged with aggravated identity theft and is alleged to have submitted PPP loan applications by stealing the identities of uninvolved parties.
If convicted, the defendants face a maximum penalty of 20 years in prison per count of wire fraud and 10 years for each money laundering conviction. If convicted of aggravated identity theft, Aqeel faces a mandatory minimum sentence of two years in addition to the sentence imposed for the other offenses.
The SBA - Office of Inspector General (OIG), Federal Housing Finance Agency – OIG, Homeland Security Investigations, Federal Deposit Insurance Corporation – OIG and Treasury Inspector General for Tax Administration conducted the investigation.
Assistant U.S. Attorney (AUSA) Rodolfo Ramirez is prosecuting the case along with Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson is handling forfeiture matters.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Charged in $35 Million COVID-19 Relief Fraud SchemeRead the Press Release
A federal grand jury in Houston returned a superseding indictment, which was unsealed today, charging four additional individuals for fraudulently obtaining and laundering millions of dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In total, 15 individuals across two states have now been charged in the conspiracy.
According to court documents, Hamza Abbas, 29, Khalid Abbas, 55, Abdul Fatani, 55, all of Richmond, Texas; and Syed Ali, 53, of Sugar Land, Texas, conspired with others to submit more than 80 false and fraudulent PPP loan applications by falsifying the number of employees and the average monthly payroll expenses of the applicant businesses. In total, the defendants sought over $35 million in PPP loan funds and obtained approximately $18 million in PPP loan proceeds.
The superseding indictment further alleges that the defendants laundered a portion of the fraudulent loan proceeds by writing checks from companies that received PPP loans to fake employees. Those that received checks included some of the defendants and their relatives, according to the charges. The fake paychecks were then allegedly cashed at Fascare International Inc. dba Almeda Discount Store – a check-cashing company. The superseding indictment alleges that over 1,100 fake paychecks, totaling more than $3 million in fraudulent PPP loan proceeds were cashed at Almeda.
Amir Aqeel, 53, of Houston, Texas; Siddiq Azeemuddin, 42, of Naperville, Illinois; Rifat Bajwa, 53, of Richmond, Texas; Pardeep Basra, 52, of Houston, Texas; Mayer Misak, 41, of Cypress, Texas; Mauricio Navia, 42, of Katy, Texas; and Richard Reuth, 58, of Spring, Texas, were previously indicted for their involvement in the fraudulent loan scheme. Aqeel, Bajwa, Basra, Misak, and Navia are also named defendants in the superseding indictment.
Azeemuddin and Reuth pleaded guilty for their involvement in the scheme on Oct. 8 and 9, respectively. Four other individuals – Abdul Farahshah, 70, Jesus Acosta Perez, 31, and Bijan Rajabi, 68, all of Houston, Texas; and Raheel Malik, 41, of Sugar Land, Texas – have also pleaded guilty for their involvement in the scheme. Malik pleaded guilty to a one-count information charging him with conspiracy to commit wire fraud and money laundering on Oct. 8. Farahshah, Perez, and Rajabi each pleaded guilty to a one-count information charging them with conspiracy to commit wire fraud on Nov. 30.
The defendants in the superseding indictment are all charged with conspiracy to commit wire fraud and wire fraud. Aqeel, Khalid Abbas, Ali, and Fatani are also charged with money laundering. Aqeel is also charged with aggravated identity theft and is alleged to have submitted PPP loan applications by stealing the identities of uninvolved parties. The defendants are scheduled for their initial court appearance tomorrow before U.S. Magistrate Judge Andrew M. Edison of the U.S. District Court for the Southern District of Texas. If convicted, the defendants face a maximum penalty of 20 years in prison per count of wire fraud, and 10 years in prison per count of money laundering. If convicted of aggravated identity theft, Aqeel faces a mandatory minimum sentence of two years in addition to the sentence imposed for the other offenses. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas; Inspector General Hannibal “Mike” Ware of the SBA–Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency–Office of Inspector General (FHFA-OIG); Special Agent in Charge Mark B. Dawson of Homeland Security Investigations (HSI) Houston; Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation–Office of Inspector General (FDIC-OIG); and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the case.
Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Rodolfo Ramirez of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson is handling forfeiture matters.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Additional defendants charged with trafficking young girls for sexRead the Press Release
HOUSTON – Three more people have been indicted and additional charges filed in human trafficking conspiracy involving young runaway girls on what it known as the “Blade,” announced Acting U.S. Attorney Jennifer B. Lowery
Law enforcement arrested Chantel Deshay Collins, 28, Houston, and Asia Monae Hailey aka Momo, 21, Galveston, this morning. They are expected to appear for an initial appearance tomorrow before U.S. Magistrate Andrew Edison. Michael Gonzalez aka Mumbles, 21, Houston, is currently in Harris County jail on other charges and is expected to be transferred to federal court to answer these charges by the end of the week.
Also charged are Clarence Chambers aka Chris aka Crazzi Chris, 29, Javon Opoku aka Glizzy, 20, Damarquis McGee aka Lil Blue, 23, Jerreck Hilliard, aka JMoney, Vanessa Sillabi aka Chocolate, 21, and Andres Portillo aka Andro, 20. They are also expected to appear on the new charges in the superseding indictment Dec. 23 before Judge Edison.
The defendants are charged with trafficking young runaway girls on what it known as the “Blade” or the Bissonnet Track. This is an area near Southwest 59 Freeway and Bissonnet Street in Houston where traffickers commonly place their victims, according to the charges.
In addition to the sex trafficking allegations, the superseding indictment includes new charges against many for kidnapping, sexual exploitation of a child, attempted obstruction of justice and attempted coercion/enticement of a child.
According to the superseding indictment, the defendants worked to recruit underage teenage girls and forced them to engage in sex acts for money in cars and hotels around the Blade. They allegedly passed around or reassigned victims amongst one another, taught each other “the pimp game” and required the young girls to walk the Blade and sell their bodies. They also kept the proceeds, according to the charges.
The superseding indictment further alleges if any of the girls wanted to switch between pimps, they would have to pay an exit fee or get “beat out” to do so. In one instance, a minor girl had allegedly wandered onto a rival pimp’s territory. The charges allege she was kidnapped and raped as a consequence.
Some of those charged also required daily quotas each night from their victims, according to the charges. The superseding indictment further alleges if the girls failed to meet their daily quotas, they were severely punished through beatings and humiliation. In some cases, pimps allegedly instructed other females to carry out these beatings as punishment. At other times, some defendants worked with the pimps to help harbor, manage, maintain, transport or collect sex trafficking proceeds from the minor victims, according to the charges.
If convicted, they all could face up to life in prison.
The Houston Police Department initiated the investigation and later partnered with Homeland Security Investigations and the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA). Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Richard Bennett and Kate Suh 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 .Absconded human smuggler receives more time for possessing firearmsRead the Press Release
McALLEN, Texas – A 30-year-old Rio Grande City resident has been ordered to federal prison for possessing multiple firearms and hundreds of rounds of ammunition, announced Acting U.S. Attorney Jennifer B. Lowery.
Victor Aleman Jr. had been sentenced for another crime but did not report to prison as ordered. He was then found and charged with being a felon in possession of a firearm. He pleaded guilty Sept. 28.
Today, District Judge Michaela Alvarez sentenced him to serve 40 months in federal prison for the firearms charge to be served consecutively to the previous 18 months on the human transporting conviction. The total 58-month prison term will be immediately followed by three years of supervised release. In handing down the sentence, the court noted the number of firearms involved in the case and how it is especially important that individuals abide by laws that relate to the safety of the public. Judge Alvarez also emphasized how Aleman was on pre-trial release for the human-smuggling case and that possessing the firearms throughout both that time and his post-sentencing release was in violation of the court’s orders and the law.
In April, Judge Alvarez had sentenced Aleman for transporting aliens within the United States. At sentencing, Judge Alvarez ordered Aleman to voluntarily surrender to the U.S. Marshals Service (USMS), but he failed to do so.
Authorities were able to locate him and took him into custody. At that time, they conducted a search of his residence and recreational vehicle and found two assault rifles, a handgun, more than 200 rounds of ammunition and four high-capacity AR-15 magazines.
Aleman admitted he owned the firearms and placed the handgun in the bedroom drawer because he loved the gun.
He 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 U.S. Marshals Service. Assistant U.S. Attorney Lee A. Fry prosecuted the case.
Texas Man Arrested for COVID-19 Relief SchemeRead the Press Release
A Texas man was arrested today for allegedly fraudulently obtaining over $3.3 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to allegations in the indictment, Scott Jackson Davis, 46, of Harris County, fraudulently received over $3.3 million in PPP funds through three fraudulent PPP loan applications submitted to a financial institution. Davis submitted applications for three businesses which he claimed to represent: Skilled Trade Investments LP (STILP), Skilled Trade Staffing LLC (STS), and Skilled Trade Investments Group LLC (STIGP). Davis claimed that these businesses had numerous employees and significant payroll, when in fact, they had few if any employees and little to no payroll. Davis also claimed on the applications that he had not been convicted of a felony in the previous five years, when in fact he had pleaded guilty to felony wire fraud charges in the Southern District of Texas in April 2017. Davis spent a large portion of the PPP loan funds on private jet travel, real estate, and luxury vehicles.
Davis is charged with wire fraud, bank fraud, and money laundering. The defendant is scheduled for his initial court appearance today before U.S. Magistrate Judge Christina A. Bryan of the U.S. District Court for the Southern District of Texas. If convicted, he faces a maximum total penalty of 30 years in prison for each count of bank fraud, 20 years in prison for each count of wire fraud, and 10 years in prison for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas; Inspector General Hannibal “Mike” Ware of the SBA-Office of Inspector General (SBA-OIG); Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division; and Special Agent-in-Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
The SBA-OIG and FBI’s Houston Field Office are investigating the case.
Trial Attorney Edward E. Emokpae of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Wakefield of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.