Southern District of Texas
Press releases recorded for this federal judicial district.
Brush guide sentenced after abandoning people during freezeRead the Press Release
CORPUS CHRISTI, Texas – A 27-year-old Harlingen man has been ordered to prison for two separate smuggling attempts, announced Acting U.S. Attorney Jennifer B. Lowery.
Eduardo Javier Jimenez pleaded guilty to each respective crime on May 4 and June 22.
Today, U.S. District Judge Drew B. Tipton ordered he serve a total of 85 months in federal prison to be immediately followed by two years of supervised release.
In February, authorities had found Jimenez on the side of the road asking for a ride. They observed his pants being wet and suspected he had been acting as a brush guide. However, at the time, they could not verify their suspicions and released him.
Later, law enforcement apprehended a group of 12 individuals after they had circumvented the Sarita checkpoint. The investigation revealed their guide had abandoned them, leaving them in below freezing temperatures for more than 15 hours. Some in the group claimed their brush guide told them he needed to use the restroom and to go ahead, and he would catch up. However, the guide had left them and disappeared. One person succumbed to hypothermia and died of dehydration.
One week later, Jimenez was found working as a brush guide for another group. At that time, he admitted he had done the same for the other group the week of the hard freeze.
He claimed the group had actually abandoned him. He later admitted this information was not true and eventually pleaded guilty to his role in both smuggling attempts.
Jimenez has been and will remain in custody spending 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 Border Patrol. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.
Several sentenced in $50M pump-and-dump schemeRead the Press Release
HOUSTON – All seven defendants charged in relation to a more than $50 million securities fraud “pump-and-dump” scheme have received their final sentences, announced Acting U.S. Attorney Jennifer B. Lowery.
Carolyn Price Austin, 67, Houston, pleaded guilty as did Andrew Ian Farmer, 43, Thomas Galen Massey, 51, Eddie Douglas Austin Jr., 71, and Charles Earl Grob, 41, all also of Houston; John David Brotherton, 62, League City; and Scott Russell Sieck, 62, Winter Park, Florida.
Today, U.S. District Judge Vanessa Gilmore sentenced her to 12 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, the court noted the large sum of money lost by the victims in the case and that there were “some people that lost all their money.”
Previously, Judge Gilmore ordered Farmer to serve a sentence of 72 months. Brotherton, Grob and Massey were ordered to serve 60 months, 12 months and three years of probation, respectively, while Eddie Austin and Sieck both were ordered to serve 36-month terms of imprisonment.
All seven must also pay restitution the victims of their scheme. Farmer and Sieck were each ordered to pay $8 million, while Eddie Austin must pay $6.6 million. The court ordered Grob and Massey to pay $4.5 and $1 million, respectively while Brotherton must pay $6.2 million. The court held open the amount of restitution Carolyn Austin will be required to pay to enable the parties to submit an agreed upon amount.
Farmer, Eddie Austin, Sieck, Brotherton and Grob were further ordered to forfeit additional funds to the United States in amounts ranging from $242,907 to $6 million.
The defendants admitted to their involvement in a conspiracy to commit fraud in microcap securities. During the course of the conspiracy, they obtained control of the stock of numerous companies, then “pumped up” the price of the stock through false and misleading press releases and fraudulent trading techniques. They then “dumped” their shares of stock onto the market for a significant profit.
Farmer and Brotherton are in custody serving their sentence at a U.S. Bureau of Prisons facility. Eddie Austin, Carolyn Austin and Sieck were permitted to remain on bond and voluntarily surrender at a later date. Grob has completed his sentence and is currently on supervised release.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorneys Justin R. Martin and Michael Chu are prosecuting the case.
Mexican nationals face life sentence for human smuggling resulting in deathRead the Press Release
LAREDO, Texas – Two Mexican men have admitted to their roles in an alien smuggling conspiracy which resulted in death, announced Acting U.S. Attorney Jennifer B. Lowery.
Fabian Hernandez, 29, Nuevo Laredo, Tamaulipas, Mexico, and Emmanuel Ferral-Tonche, 19, Nuevo Laredo, Tamaulipas, Mexico, pleaded guilty before U.S. Magistrate Judge John Kazen today.
On June 9, 2021, Hernandez and Ferral-Tonche marched a group of approximately two dozen individuals through the hot south Texas brush. Some were unable to keep going. At no time did Hernandez or Ferral-Tonche offer water or attempt to look for anyone who had fallen behind or gotten lost.
Authorities eventually responded to multiple 911 emergency calls coming from the Hachar Ranch property in Webb County. They ultimately discovered 24 individuals illegally present in the United States who had become lost at that location. They identified Hernandez and Ferral-Tonche as the smugglers.
Law enforcement also found the remains of three deceased people. Agents determined Hernandez and Ferral-Tonche had guided at least one of them before they succumbed to dehydration and hyperthermia while being smuggled.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing March 16, 2022. At that time, both men face up to life in federal prison. They have been and will remain in custody pending that hearing.
Homeland Security Investigations and Customs and Border Protection conducted the investigation with assistance from the Laredo Police Department.
Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Former postal employee pleads guilty to theft of public moneyRead the Press Release
HOUSTON – A 35-year-old Houston resident has admitted to four counts of theft of public money, announced Acting U.S. Attorney Jennifer B. Lowery.
Tranese Nicole Mitchel was formerly employed as a lead sales and service clerk with the U.S. Postal Service (USPS) in Houston. Today, she admitted she issued fraudulent refunds by creating no-fee postal money orders She then cashed against her drawer at the post office where she worked.
Mitchell fraudulently issued and cashed a total of $29,947.30. She admitted using the money for her own benefit.
U.S. District Judge Andrew Hanen accepted the plea and set sentencing for April 11. At that time, Mitchell faces up to 10 years imprisonment and a maximum $250,000 fine.
She was permitted to remain on bond pending that hearing.
The U.S. Postal Service - Office of Inspector General conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Trader Indicted for Commodities Insider Trading SchemeRead the Press Release
A federal grand jury in Houston returned an indictment on Dec. 7 charging a natural gas trader for an insider trading scheme involving natural gas futures.
According to court documents, Peter Miller, 41, of Puerto Rico, worked as a natural gas trader for his own company, Omerta Capital LLC. Miller conspired with others to misappropriate material, nonpublic information and to engage in fraudulent, noncompetitive trades, including prearranged trades, in natural gas futures contracts for their own personal gain. Miller and his co-conspirators caused prices to be reported, recorded, and registered on designated commodities markets that were not true, bona fide prices. The profits from these fraudulent trades were split among Miller and his co-conspirators.
In four related cases, Marcus Schultz, 41, of Houston, Texas; John Ed James, 51, of Katy, Texas; Mathew Webb, 51, of Tiki Island, Texas; and Lee Tippett, 62, of Jacksonville, Florida, pleaded guilty on July 20, 2020, Feb. 1, 2021, June 15, 2021, and Aug. 17, 2021, respectively. Schultz pleaded guilty to a one-count information charging him with conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act. James pleaded guilty to a one-count information charging him with conspiracy to commit commodities fraud and wire fraud. Webb pleaded guilty to a one-count information charging him with conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act. Tippett pleaded guilty to a one-count information charging him with conspiracy to commit commodities fraud and honest services wire fraud.
Miller is charged with one count of conspiracy to commit commodities fraud and four counts of commodities fraud. The defendant is scheduled for his initial court appearance on Dec. 16 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 25 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U. S. Attorney Jennifer Lowery for the Southern District of Texas; Acting Assistant Director Jay Greenberg of the FBI's Criminal Investigative Division; Acting Special Agent in Charge Richard A. Collodi of the FBI’s Houston Field Office; and Special Agent in Charge Richard Gross of the IRS-Criminal Investigation’s Houston Field Office made the announcement.
The FBI’s Houston Field Office and IRS-Criminal Investigation’s Houston Field Office are investigating the case.
Trial Attorneys Leslie S. Garthwaite and Della Sentilles of the Criminal Division’s Fraud Section and Deputy Chief Suzanne Elmilady and Assistant U.S. Attorney Zahra Fenelon of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Texan charged with posting child pornography to FacebookRead the Press Release
LAREDO, Texas – A 26-year-old Laredo resident is set to appear in federal court on charges of possessing and distributing child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
A federal grand jury returned a three-count indictment against Kevin Montemayor Oct. 19.
The indictment was unsealed Dec. 7 upon his arrest. He is set to make his initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 1:30 p.m.
According to the charges, a person linked to an IP address in Laredo had uploaded child pornography to Facebook messenger. Law enforcement conducted a search at the residence and allegedly encountered Montemayor.
A forensic analysis of Montemayor’s seized electronic devices included more than 7,000 images and videos of child pornography, according to the charges. The images allegedly included children as young as 3.
If convicted, Montemayor faces a minimum of five and up to 20 years in federal prison.
Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Aaron Petters is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Local man gets life for hunting girls onlineRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old Corpus Christi resident has been ordered to federal prison for using social media to entice a young girl to engage in sexual activity, announced Acting U.S. Attorney Jennifer B. Lowery.
Robert Velasquez pleaded guilty in January 2020.
Today, Senior U.S. District Judge Janis Graham Jack ordered he serve the rest of life in prison. At the hearing, the court heard additional information including impact statements from three of his victims. Additional information was also presented about the identification of several victims between the ages eight and 15. In handing down the prison term, the court noted that given the nature of the defendant’s conduct and the damage he had done to the victims and their families, she felt she had no other sentence available to her that could properly protect the community. A restitution hearing will be held at a later date.
“Using any type of social media to target our children is deplorable,” said Acting U.S. Attorney Jennifer B. Lowery. “Such communication avenues can be wonderful tools to share stories and connect with people, but we must remain vigilant and cautious. This defendant abused these systems and hunted for victims who were specifically underage and local. Thankfully, he will be behind bars, but the case is a good reminder to monitor our children’s activity and to be careful about having identifiable information readily available.”
The investigation began in January 2019. Authorities ultimately reviewed more than 50,000 social media chats which led to the identification of over 10 young girls ranging from 8 to 17 years of age whom Velasquez victimized.
He had used the victims’ social media accounts to determine they were local and underage. He then targeted them with complimentary messages and long conversations in order to get the girls to meet for sex. In some instances, he photographed the children during their physical encounters.
Velasquez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Corpus Christi Police Department Internet Crimes Against Children conducted the investigation.
Assistant U.S. Attorney Brittany L. Jensen 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 tab on that page.
Former Mexican police officer gets 30 years for sexually exploiting childRead the Press Release
BROWNSVILLE, Texas – A 38-year-old resident of Matamoros, Tamaulipas, Mexico, has been ordered to federal prison for producing child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Jose Alfredo Fernandez-Martinez pleaded guilty Aug. 4.
Today, U.S. District Judge Rolando Olvera Jr. ordered him to serve a 360-month sentence. At the hearing, the court heard additional information including the victim impact statement from the victim’s mother. Following the sentence, Fernandez-Martinez will serve 10 years on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Fernandez-Martinez will also be ordered to register as a sex offender and must pay a total of $55,000 in special assessments.
From on our about Aug. 2, 2020, to Jan. 6, 2021, Fernandez-Martinez caused an eight-year-old female to engage in sexually-explicit conduct. He recorded it with his cellphone.
Fernandez-Martinez attempted to enter the country, at which time authorities found the videos. A forensic examination of the phone determined he possessed approximately 141 videos and 82 images of child pornography. Fernandez-Martinez created five of the videos with the phone.
Fernandez-Martinez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano 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 tab on that page.
Coldspring man gets life in postal carrier death caseRead the Press Release
HOUSTON – A 45-year-old rural Houston resident has admitted he murdered a U.S. Postal Service (USPS) mail carrier while she was in the performance of her official duties, announced Acting U.S. Attorney Jennifer B. Lowery.
James Wayne Ham pleaded guilty today. Immediately thereafter, U.S. District Judge Lynn N. Hughes handed down a life sentence.
“Any murder against our citizens is egregious and intolerable,” said Lowery. “Even worse is someone who attacks our workforce while they are simply doing their job. This plea and sentence shows our determination to stand firm with our partners to ensure no one escapes justice for such vicious crimes.”
At the hearing, Ham admitted he murdered a USPS employee May 17, 2013, by shooting her with a firearm and then setting her on fire.
“USPS letter carriers are in our neighborhoods every day, delivering mail to homes and businesses across this country,” said Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service (USPIS). “The investigation and arrest of Ham for his shocking and heinous crimes against a USPS letter carrier was the highest priority for the USPIS. Our thoughts continue to be with the victim’s family and all affected by this senseless crime.”
On May 17, 2013, Ham obtained a rifle, lighter fluid and extra ammunition. He then hid in the tree line near his home. Once the mail carrier delivered his mail and began leaving the area, Ham shot her approximately four times. He soon got into her vehicle and drove a short distance away to a water supply station. There, he doused the vehicle with lighter fluid and set it on fire. The victim’s body was still inside.
The victim’s son alerted law enforcement to the murder. He had been on the phone with the victim when Ham shot her. He advised that he had heard two loud noises, and upon questioning, she stated she thought she had been shot.
The son also heard an unintelligible male's voice over the telephone. During the call, he heard his mother say “Please don't kill me, please don't kill me.” The call was disconnected, after which he called 911.
Authorities later found Ham hiding in a vacant residence near the scene of the murder. They arrested him where he ultimately confessed. After the interview, Ham took law enforcement to the scene of the murder and showed them where he had hidden the gun as well as the location where he had shot the victim.
Ham has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
USPIS conducted the investigation. Assistant U.S. Attorneys Jill Stotts and Erin Epley prosecuted the case along with Trial Attorney Barry Disney of the Justice Department's Capital Case Section.
Texas man admits to smuggling $1.1 Million of crystal methRead the Press Release
LAREDO, Texas – A 20-year-old Dallas resident has entered a guilty plea to illegally importing approximately 25.16 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
On June 6, Luke Law attempted to cross into the United States after vacationing in Monterrey, Mexico. Authorities referred his vehicle to the secondary inspection area where a K-9 alerted to the presence of narcotics. An X-ray scan revealed anomalies behind the vehicle’s gas tank. Upon further investigation, law enforcement discovered a total of 29 bundles of meth wrapped in clear tape weighing approximately 25.16 kilograms.
The drugs have an estimated street value of approximately $1.1 million.
U.S. District Judge Marina Garcia Marmolejo accepted the plea and set sentencing for a future date. At that time, Law faces up to life in prison and a possible $10 million maximum fine. He will remain in custody pending that hearing.
Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Michael Makens is prosecuting the case.
Soccer coach admits to producing child pornographyRead the Press Release
McALLEN, Texas – A former McAllen youth league coach who illegally resided in Pharr has entered a guilty plea to sexual exploitation of children, announced Acting U.S. Attorney Jennifer B. Lowery.
From March 2020 through June 2021, Oscar Hinojosa communicated and cultivated a relationship with a 15-year-old minor.
Hinojosa was the victim’s soccer coach. Over time, Hinojosa told her he loved her and expressed his sexual desire for her. During their communications, Hinojosa instructed the minor victim to send a sexually-explicit photo of her genitalia in a specific pose. She ultimately did as requested on this occasion and others.
While communicating with this victim, Hinojosa also attempted to cultivate a similar relationship to another one of the minor females on his soccer team. While he was unsuccessful, he expressed his love for her as well.
Hinojosa is not a citizen of the United States does not have legal status to reside here.
Mission Police Department and Homeland Security Investigations conducted the investigation.
U.S. District Judge Alvarez accepted the plea and set sentencing for March 18, 2022. At that time, Hinojosa faces up to 30 years in federal prison.
He has been and will remain in custody pending that hearing.
Assistant U.S. Attorney Colton T. Turner 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 tab on that page.
Former charter school official sent to prisonRead the Press Release
HOUSTON – A 65-year-old Missouri City man has been ordered to federal prison for conspiracy to commit mail fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
Richard Rose pleaded guilty Aug. 17.
Today, Chief U.S. District Judge Lee H. Rosenthal imposed a 36-month prison sentence and further ordered Rose to pay restitution of $335,439.
Rose was the founder of Zoe Learning Academy. He served in various capacities to include superintendent, CEO and chief financial officer during its operations from 2001 until it closed in September 2019.
At the time of his plea, he admitted he filed falsified governance reports through the U.S. mail to obtain charter school funds. He embezzled funds intended for the charter school’s operation and used them for his personal expenses such as legal fees, a lawsuit settlement and for the purchase of a timeshare.
Rose was permitted to remain on bond and voluntarily surrender to a Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation, Secret Service, Department of Education-Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek and Quincy Ollison prosecuted the case.
Cypress medical sales representative agrees to settle allegations regarding neurostimulator devicesRead the Press Release
HOUSTON - A 47-year-old medical sales representative has agreed to pay $100,000 to settle allegations that he assisted in causing the submission of false claims, announced Acting U.S. Attorney Jennifer B. Lowery.
Matthew Thibaut is a sales representative from Cypress. He sold products through his business, Flex Surgical Management LLC.
From Jan. 1, 2017, to Dec. 31, 2019, Thibaut sold ANSiStim and Primary Relief devices to various medical providers. DyAnsys Inc. manufactures the devices which are used for electro-acupuncture. This only involves inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.
However, Thibaut’s customers falsely billed Medicare for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring use of an operating room for which Medicare pays thousands of dollars. Thibaut allegedly knew his customers would bill Medicare in this fashion and, therefore, assisted in causing the submission of false claims, according to the allegations.
To date, the Southern District of Texas has resolved six other similar cases which included settlements from a Katy anesthesiologist, a Houston pain doctor, a Rockport chiropractor, a Houston chiropractor, a Laredo pain doctor and a Woodlands pain doctor. This is the first settlement in the Southern District of Texas involving a device marketer.
The U.S. Attorney’s Office jointly conducted the investigation with the Department of Health and Human Services – Office of Inspector General. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Baytown man gets 60 years for sexually-exploiting childrenRead the Press Release
HOUSTON – A 30-year-old man has been ordered to federal prison on multiple counts involving child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Andrew Blake Delacruz pleaded guilty May 6 to three counts of sexual exploitation of children as well as possession and distribution of child pornography.
Today, U.S. District Judge Alfred Bennett ordered him to serve a total of 720 months in federal prison. At the hearing, the court heard victim statements explaining how Delacruz detrimentally impacted their lives and were seeking justice.
In handing down the sentence, Judge Bennett noted Delacruz’s egregious conduct in his victimization of three minors, one of whom had a mild mental disability.
Delacruz came to the attention of law enforcement after he sent images of child pornography of a minor female relative through an online chat group which was dedicated to the sexual exploitation of children.
On July 17, 2020, authorities executed a search warrant at his residence and seized his cellphones. At that time, they located a young female victim who reported that Delacruz had been sexually abusing her and would take pictures.
A forensic examination resulted in the discovery of seven videos and 41 images of that victim which showed oral and anal penetration. Law enforcement also found two other young victims of whom Delacruz had also produced child pornography.
One of those victims was only nine years of age at the time of the abuse. She reported that Delacruz would rub her thighs, buttocks and vaginal area and that he would perform oral sex on her. She also described how he would rub his penis on her vagina and attempted to vaginally penetrate her.
In addition, there were six images of child pornography of one of her friends. Delacruz has his penis exposed in the foreground of some of the images. In others, Delacruz’s hand is seen pulling down her pants and underwear, exposing her buttocks.
In addition to the child pornography Delacruz created of these minor victims, authorities also found 50 videos and seven images of other child pornography Delacruz had in his collection.
Delacruz 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. Attorneys Kimberly Ann Leo and Luis Batarse 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 tab on that page.
Texas Man Sentenced to More Than Nine Years in COVID-19 Fraud and Money Laundering SchemeRead the Press Release
A Texas man was sentenced today to 110 months in prison for his scheme to fraudulently obtain and launder proceeds from more than $1.6 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 court documents, Lee Price III, 30, of Houston, who pleaded guilty in September to charges of wire fraud and money laundering, submitted fraudulent PPP loan applications to two different lenders on behalf of three entities, 713 Construction LLC, Price Enterprises Holdings LLC, and Price Logistic Services LLC. Through these loan applications, Price sought over $2.6 million and actually obtained over $1.6 million in PPP loan funds. Price falsely represented the number of employees and payroll expenses in each of the PPP loan applications. To support the fraudulent PPP loan applications, Price also submitted fraudulent tax records and other materials. Illustratively, with respect to the 713 Construction LLC loan application, Price applied in the name of an individual who died shortly before the application was submitted. After he received the PPP loan funds, Price spent the money on, among other purchases, a Lamborghini Urus, a Ford F-350 truck, a Rolex watch, and to pay off a loan on a residential property. The Department of Justice, along with law enforcement partners, seized over $700,000 of the funds Price fraudulently obtained.
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; Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) – Central Region; Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General (SBA-OIG) – Central Region; and Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service – Houston Division made the announcement.
FHFA-OIG, SBA-OIG, and the U.S. Postal Inspection Service investigated the case.
Trial Attorney Andrew Tyler of the Criminal Division’s Fraud Section and Trial Attorneys James Alexander and Matthew Grisier of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister of the Southern District of Texas. Assistant Deputy Chief Timothy A. Duree and Trial Attorney Kyle Maurer of the Criminal Division’s Fraud Section assisted in the investigation and prosecution of 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.
Former Shadow Creek Ranch manager charged with wire fraudRead the Press Release
HOUSTON – A 62-year-old Houston resident is set to appear in federal court on charges she defrauded a property management company, announced Acting U.S. Attorney Jennifer B. Lowery.
Maria Denise Southall-Shaw is charged with one count of wire fraud. She is set to appear before U.S. Magistrate Judge Andrew Ellison at 2 p.m. today.
Southall-Shaw was the former manager of Shadow Creek Ranch in Pearland. First Service Residential (FSR) is Shadow Creek’s property management company and employed Southall-Shaw, according to the information.
She allegedly engaged in a scheme to defraud FSR. The information alleges that between December 2013 and November 2017, Southall-Shaw approved invoices from a ranch vendor for goods and services she knew the vendor had not provided, according to the allegations.
Southall-Shaw allegedly caused this vendor to kickback to her 50% of the payment the vendor received, which totaled $421,519.
If convicted, she faces up to 20 years in federal as well as a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Aransas man guilty of meth chargeRead the Press Release
CORPUS CHRISTI, Texas – A federal jury sitting in Corpus Christi has found a 59-year-old local man guilty of conspiracy to distribute more than five grams of meth and possession with intent to distribute 27 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately three hours following a two-day trial before returning a guilty verdict on both counts against Ronald Flirt.
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. It clearly did not work.
The defense attempted to convince the jury the drugs were solely for personal use and that Flirt intended to smoke an entire ounce of meth. They did not believe those calins and found him guilty as charged.
U.S. District Judge David Morales set sentencing for Feb. 23, 2022. At that time, Flirt faces up to 40 years in prison and a possible $5 million maximum fine. He has been and will remain in custody pending that hearing.
The DEA and police departments in Corpus Christi and Mathis conducted the investigation. Assistant U.S. Attorneys Christopher Marin and John Marck are prosecuting the case.
Young Houstonian sent to prison for nearly 20 yearsRead the Press Release
HOUSTON – A 24-year-old Houston man has been ordered to federal prison following his convictions on robbery, brandishing and discharging a firearm during a crime of violence, announced Acting U.S. Attorney Jennifer Lowery.
Dametric Marquise Hunter pleaded guilty Aug. 31.
Today, U.S. District Judge Vanessa Gilmore ordered him to serve a total of 234 months in federal prison. The sentence will be immediately followed by five years of supervised release.
Co-defendant Joshua Dawayne Prater, 23, Houston, pleaded guilty to one count each of robbery and discharging a firearm during a crime of violence. He received a total sentence of 132 months Nov. 15.
In January and February of 2019, Hunter, Prater and others committed a series of commercial armed robberies, including several that took place at Walgreens stores.
On Feb. 12, 2019, a joint task force operation resulted in the surveillance and arrest of Hunter and Prater as they fled a robbery at a Walgreens on Westheimer Parkway in Fort Bend County. A shoot-out ensured and two others believed to be involved in the robbery were killed.
The investigation led to the discovery that Hunter and Prater also committed to multiple robberies in 2019.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorneys John Michael Lewis and Matthew Roy Peneguy are prosecuting the case.
McAllen man sent to prison for attempting to entice minor through social mediaRead the Press Release
McALLEN, Texas – A 27-year-old McAllen resident has been ordered to federal prison after admitting he intended to engage in sexual activity with a minor female, announced Acting U.S. Attorney Jennifer B. Lowery.
David Montelongo pleaded guilty June 24.
Today, U.S. District Judge Randy Crane sentenced him to 120 months in federal prison. In handing down the sentence, the court noted that Montelongo had committed a very serious offense which was not impulsive as it had taken place over some length of time. Judge Crane also referenced how Montelongo knew his conduct was wrong. Montelongo was further ordered to serve five years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children. He will also be required to register as a sex offender.
On Jan. 21, Montelongo began to entice and coerce an individual he believed to be a 13-year-old female on a popular social media application. In their communications, Montelongo discussed the sexual acts he desired to perform on the minor and take her virginity.
Montelongo requested to meet the alleged minor in person at a park in McAllen, at which time he expected to engage in sexual activity with her. Montelongo saw authorities and fled upon arrival. Law enforcement later took him into custody March 10.
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 - Rio Grande Valley Child Exploitation Investigations Task Force conducted the investigation.
Assistant U.S. Attorney Michael Mitchell 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 tab on that page.
Court assesses more than $170M in penalties against two area ophthalmologistsRead the Press Release
HOUSTON – Two ophthalmologists and their eye clinic must pay millions of dollars for fraudulently billing Medicare in relation to the evaluation and treatment of glaucoma, announced Acting U.S. Attorney Jennifer B. Lowery.
“Deliberately overcharging the government for medical services wastes our country’s precious health care resources,” said Lowery. “We will not stand idly by as providers in our district attempt to abuse the system.”
U.S. District Judge Lynn N. Hughes assessed the amounts against Dr. Mustapha Kibirige, 58, and Dr. Emelike Agomo, 57, and the eye clinic they operated in Houston – Outreach Diagnostic Clinic LLP. Kibirige also practices in Humble.
The action is a result of a whistleblower lawsuit a former employee of Outreach had filed under the False Claims Act (FCA). It alleged the two ophthalmologists were fraudulently billing the Medicare Program for single eye pressure measurement tests used to assess and treat glaucoma. Kibirige and Agomo allegedly billed the federal health care program using an improper reimbursement code that provided a higher reimbursement than what was allowed.
Under the FCA, the government is entitled to treble damages and a penalty on each false claim. Judge Hughes determined those damages amounted to $2,422,350. The court further found the practice had submitted 14,450 false claims to the Medicare Program between 2006 and 2012. Judge Hughes assessed a penalty of $11,803 for each of those false claims, resulting in a total of $170,553,350 in penalties.
Under the FCA, a private party can file an action on behalf of the United States and receive a share of the recovery.
The Department of Health and Human Services - Office of Inspector General conducted the investigation. Deputy Civil Chief Andrew A. Bobb and former Assistant U.S. Attorney Jose Vela handled that matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
“Cocaine Pepe” gets significant sentence for selling narcoticsRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old Alice resident has been ordered to federal prison for possession with intent to distribute 112 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Jose Francisco Arredondo aka Cocaine Pepe pleaded guilty Aug. 19.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 151-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that detailed Arredondo’s life of crime and how he terrorized the Alice and Jim Wells County community – 28 arrests and was one of the main sources of meth, cocaine, steroids and more in Alice. In handing down the sentence, Judge Ramos noted Arredondo was consistently arrested multiple times with guns and drugs and that previous jail sentences did not seem to dissuade him from criminality.
On April 9, law enforcement arrived at a local hotel in response to a potential disturbance. They soon observed a vehicle with its lights on and engine running. Arredondo was driving. As they approached, they immediately noticed a firearm in the center console. Knowing he was a convicted felon, authorities conducted a thorough search of the vehicle.
They ultimately uncovered over $11,000 as well as four bags of narcotics, one with 112 grams of meth, two containing a total of 56 grams of cocaine and another with 13 grams of marijuana. Law enforcement also discovered a digital scale, many lottery tickets, and a defaced firearm.
Arredondo 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; Bureau of Alcohol, Tobacco, Firearms and Explosives; Jim Wells County Sheriff’s Office and the Alice Police Department conducted the investigation. Assistant U.S. Attorney Christopher Marin prosecuted the case.
Woodlands pain doctor pays half million dollars for fraudulent PPP and billing allegationsRead the Press Release
HOUSTON - A 49-year-old local physician has agreed to pay $523,331 to settle allegations he submitted false claims for the placement of electro-acupuncture devices and for making false statements when applying for a loan from the Paycheck Protection Program (PPP), announced Acting U.S. Attorney Jennifer B. Lowery.
Dr. Emad Bishai is an anesthesiologist and pain management physician who practices in The Woodlands. Woodlands Pain Institute PLLC is his primary practice entity.
From July 12, 2017, to May 10, 2019, Bishai billed the Medicare and TRICARE programs for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring use of an operating room for which Medicare pays thousands of dollars. Neither Bishai nor his staff performed this surgical procedure. Instead, patients received devices used for electro-acupuncture. This only involved inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.
In addition to the financial settlement, Bishai and Woodlands Pain Institute PLLC have agreed to a seven-year-period of exclusion from participation in any federal health care programs.
To date, the Southern District of Texas has resolved five similar cases, which included settlements from a Katy anesthesiologist, a Houston pain doctor, a Rockport chiropractor, a Houston chiropractor, and a Laredo pain doctor.
In addition to his false medical claims, Bishai allegedly made false statements when submitting an application to the PPP program in May 2020 on behalf of Woodlands Pain Institute PLLC. Specifically, the application included a question whether the applicant (or any individual owning more than 20% equity) is subject to an indictment, criminal information, arraignment or other means by which formal criminal charges are brought in any jurisdiction.
Bishai is 100% owner of Woodlands Pain Institute PLLC. When filling out the application, he falsely checked the box marked “No” and initialed his name beneath the question. However, at the time of the application, Bishai was facing criminal charges in Montgomery County arising from his practice of prescribing opioid medicines. As a result of his fraudulent application, Bishai received a loan to which he was not entitled.
The Department of Health and Human Services – Office of Inspector General and Defense Criminal Investigation Service conducted the investigation with the assistance of Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Penitas city manager pleads guiltyRead the Press Release
McALLEN, Texas – A 38-year-old McAllen resident has pleaded guilty to a criminal information charging him with bribery and bankruptcy fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
Omar X. Romero admitted that in 2018 he utilized a cellular phone to communicate with other public officials individuals regarding a scheme to sell a water tank to Agua Special Utility District (SUD) and compensation to be paid in consideration for board votes.
Romero also admitted he was appointed to serve as the chief restructuring officer of Hidalgo County Emergency Services Foundation on Nov. 4, 2019, in connection with their bankruptcy proceedings. While serving in that role, he obtained at least $50,000 from the debtor’s estate that the bankruptcy court had not authorized or earned as compensation for his services.
U.S. District Judge Ricardo H. Hinojosa will impose sentencing Jan. 20, 2022. At that time, Romero faces up to five years in federal prison on each count of conviction. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation with the assistance of the Texas Department of Insurance and McAllen Police Department. Assistant U.S. Attorney (AUSA) Roberto Lopez is prosecuting the criminal case. AUSA Richard Kincheloe represents the government in the related bankruptcy proceedings.
Local pipe companies face penalties for not cooperating with federal investigationRead the Press Release
HOUSTON – A civil action has been filed against MC Tubular Products and Metal One America for failing to comply with a federal summons, announced Acting U.S. Attorney Jennifer B. Lowery.
MC Tubular Products is a supplier of industrial pipe products used in the oil and gas industry. The company is a subsidiary of Metal One Holdings America, which sources materials, handles logistics and provides import/export management, trade finance, credit and risk management.
MC Tubular Products allegedly made misrepresentations to avoid paying more than $10 million in antidumping duties on metal pipe imported from Japan. As part of the investigation, they were issued a summons compelling the companies to produce documents which are expected to show whether either acted improperly, according to the filing in federal court today.
However, the allegations indicate they did not comply and failed to produce the required documents by the deadline.
Homeland Security Investigations and Customs and Border Protection are conducting the investigation.
Assistant U.S. Attorney Rick Kincheloe is handling the matter in coordination with the Civil Division’s National Courts Section.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Three men guilty for their roles in multimillion-dollar COVID-relief fraud conspiracyRead the Press Release
HOUSTON – Three individuals have admitted to their participation in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans. The Small Business Administration (SBA) guarantees PPP loans under the Coronavirus Aid, Relief, and Economic Security Act.
Richard Reuth, 58, Spring, entered his plea today, while Raheel Malik, 41, Sugar Land, and Siddiq Azeemuddin, 42, Naperville, Illinois, pleaded guilty yesterday. During their respective pleas, they admitted to engaging in a conspiracy to defraud the SBA and certain SBA-approved PPP lenders by submitting false and fraudulent PPP loan applications. Azeemuddin and Malik also conspired to launder over $3 million in PPP loan funds through Azeemuddin’s business, Fascare International Inc. dba Almeda Discount Store.
As part of the scheme, Azeemuddin instructed Malik to fill out blank checks from companies that received PPP loans by putting the names of fake employees in the payee line. At Azeemuddin’s direction, Malik then cashed the checks at a financial institution and transported the cash to other members of the conspiracy. In exchange for laundering the funds, Azeemuddin received 1 to 2% of each check cashed.
For his part, Reuth admitted to conspiring to submit PPP loan applications on behalf of companies that he knew were inactive and did not have any employees. In exchange for each false and fraudulent PPP loan application, Reuth received approximately $50,000.
Azeemuddin pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering, while Malik admitted to one count of conspiracy to commit wire fraud and money laundering. Azeemuddin and Malik face up to 40 and five years in federal prison, respectively. Reuth entered his plea to one count of conspiracy to commit wire fraud and could receive a maximum of 20 years in prison. All are set for sentencing March 7, 2022.
SBA–Office of Inspector General (OIG), , Federal Housing Finance Agency–OIG, Homeland Security Investigations, Federal Deposit Insurance Corporation–OIG, and the Treasury Inspector General for Tax Administration conducted the investigation.
Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the case along with Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section.
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 the Combatting Coronavirus Fraud page.
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.
Five individuals charged in multi-million dollar money laundering conspiracyRead the Press Release
HOUSTON – A fifth individual has surrendered to authorities in relation to a multi-year, multi-million dollar money laundering conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Michael Dean Richards, 33, Frisco, is expected to appear for his initial appearance before U.S. Magistrate Judge Frances Stacy at 10 a.m. today. Authorities arrested Branden Denver Richards, 29, and Douglas Paul Michael Davis, 27, both residents of the Dallas-Fort Worth Metroplex, last week. They are also set to appear this morning. Vinh Quang Phan, 56, and Diana Le Phan, 44, both of Houston, are scheduled to appear in federal court next week.
A federal grand jury returned an 11-count superseding indictment Oct. 6 charging all five with conspiring to launder monetary instruments and conspiring to engage in monetary transactions in criminally derived property. The Phans are additionally charged with six counts of engaging in monetary transactions in criminally derived property, operation of an unlicensed money transmitting business and conspiracy to do so. Diana Le Phan has an additional charge of laundering monetary instruments.
According to the indictment, the Phans operated an unlicensed money transmitting business that transmitted funds received in the form of U.S. currency aka bulk cash. At least some of this money, including bulk cash received from Michael and Brandon Richards and Davis, allegedly constituted proceeds from the trafficking, distribution and sale of controlled substances.
During the course of the approximately 21-month conspiracy, the unlicensed money transmitting business received and transmitted more than $32 million, according to the charges.
After receiving the bulk cash, the indictment alleges the Phans either drove those funds across the country or introduced them into the banking system for transmission through bank accounts, virtual currency accounts and the purchase and transfer of virtual currency. To carry out the conspiracy, Vinh and Diana Phan allegedly used bank accounts and virtual currency accounts in their names, in the names of three businesses they registered with the state of Texas or in the names of co-conspirators. They did not register their money transmitting business with the Department of the Treasury, nor did the state of Texas license them to engage in money transmission, according to the charges.
All five face up to 20 years in prison if convicted of conspiracy to launder monetary instruments and a maximum of 10 years for conspiring to engage in monetary transactions in criminally derived property. The Phans also face up to five years in prison if convicted of conspiring to operate or operating an unlicensed money transmitting business.
IRS-Criminal Investigation and Drug Enforcement Administration conducted the investigation with assistance from the Houston Police Department as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) and South Texas High Intensity Drug Trafficking Areas (HIDTA) Financial Crimes Task Force. 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 Stephanie Bauman and Richard W. Bennett are prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Man who ran from police heads to federal prisonRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Corpus Christi resident has been ordered to prison for possession with intent to deliver cocaine, announced Acting U.S. Attorney Jennifer B. Lowery.
Don Neal Devon Cobb pleaded guilty Aug. 2.
Today, U.S. District Judge David S. Morales ordered him to serve 88 months in federal prison to be immediately followed by three years of supervised release. At the hearing, Cobb admitted he had a drug problem.
Cobb first caught the attention of law enforcement when they pulled him over for a traffic violation. He soon fled the scene and led officers on a high speed pursuit before wrecking his vehicle. At the scene of the crash, authorities located a substantial amount of meth.
The investigation led to the discovery that he was dealing narcotics. On May 28, 2020, law enforcement executed a search warrant on Cobb’s residence. Inside, they found cocaine, heroin, illegal mushrooms, marijuana, THC wax, a loaded firearm and items associated with drug trafficking.
Cobb has been in custody since the time of his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of Homeland Security Investigations, Texas Department of Public Safety and Corpus Christi Police Department. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Local tax preparer charged with fraudulently filing tax returnsRead the Press Release
HOUSTON – A local man who had several offices in the Houston area is set to appear in federal court for allegedly filing false taxes for clients, announced Acting U.S. Attorney Jennifer B. Lowery.
The indictment, filed March 18, charges David Wright with 14 counts of aiding and assisting in preparation and filing of false income tax returns. He is set to appear before U.S. Magistrate Judge Frances Stacy at 10 a.m.
Wright operated tax preparation offices in Houston, according to the indictment. As part of his regular business, he allegedly created and placed fraudulent Schedule C items on client Form 1040s. This enabled clients to receive a higher tax refund, according to the charges.
As a result of his actions, Wright allegedly caused hundreds of thousand dollars of tax harm to the government.
If convicted, he faces up to three years in prison, and a possible $250,000 fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Zahra Jivani Fenelon is prosecuting the case.
Cocaine trafficker returns to prison for 10 more yearsRead the Press Release
CORPUS CHRISTI, Texas – A 41-year-old convicted felon will be returning to federal prison for his role in a 17-kilogram cocaine trafficking conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Marcus Donell Hollowell aka Red pleaded guilty Aug. 5.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced him to serve a 120-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional statements that described Hollowell’s role in the conspiracy and his felony convictions for trafficking cocaine and heroin possession. Judge Ramos noted the sentence was an adequate deterrent.
Between May 2020 and May 2021, Hollowell was involved in a conspiracy with others to possess with intent to distribute over five kilograms of cocaine between Corpus Christi and Ft. Myers, Florida. He helped coordinate cocaine or currency with other co-conspirators or sources of supply.
Authorities seized over $250,000 on July 16, 2020.
At the time of Hollowell’s arrest in May, authorities discovered a loaded .44 caliber revolver, additional cocaine, meth, ecstasy and U.S. currency in his residence.
Hollowell has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Co-conspirators Adan Rivera, 37, Corpus Christi, was previously sentenced to 135 months, while Rudy Reyna, 39, Robstown, was ordered to serve 121 months.
Immigration and Customs Enforcement’s Homeland Security Investigations (Corpus Christi and El Paso sectors) conducted the investigation with assistance from Drug Enforcement Administration, U.S. Marshals Service, Texas Department of Public Safety and Corpus Christi Police Department’s Narcotics Vice Investigative Division. Assistant U.S. Attorney Reid Manning prosecuted the case.
Two men sent to prison for trafficking troubled teenagerRead the Press Release
HOUSTON – Two Houstonians are on their way to federal prison after admitting to recruiting a teenager on social media and trafficking her for sex, announced acting U.S. Attorney Jennifer B. Lowery.
Demetrius Delaan White, 30, and Deonte Danquise Bailey-Roach, 28, pleaded guilty Jan. 27.
Today, U.S. District Judge Kenneth M. Hoyt sentenced White to 240 months, while Bailey-Roach received a 144-month-term of imprisonment. The court considered statements from the minor victim and her mother detailing the lasting impact of the teenager’s victimization. Both will be ordered to pay restitution to the victim and serve an additional five years on supervised release following completion of the prison terms, during which time they will have to comply with numerous requirements designed to restrict access to children and the internet. Both will also be ordered to register as sex offenders.
In 2017, White and Bailey-Roach recruited a troubled teenager on social media. They then brought her from her home in Stephenville to Houston to engage in commercial sex acts.
Over the next four days, they exploited the minor victim for their own sexual gratification and profit. They posted the minor victim on internet advertisements for commercial sex, during which time more than 300 people expressed interest. They rented motel rooms for the sex acts, drove her to clients’ homes and took her to a truck stop. They also had her walk on Bissonnet Street, an area commonly known for an open and rampant sex trade.
To induce the minor victim into continuing to engage in the activity, both men gave her drugs before the commercial sex acts. They also kept all the cash proceeds.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Houston Police Department (HPD), both part of the Human Trafficking Rescue Alliance (HTRA), conducted the investigation.
HTRA law enforcement includes members of the HPD, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Coast Guard and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the 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 Kate Suh and Sebastian Edwards are prosecuting the case.
Sex offender sentenced for involvement in child pornography featuring young children, bondage and acts of violenceRead the Press Release
HOUSTON – A 39-year-old Houston man has been ordered to federal prison after admitting he received and possessed child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Leon Travis Beard pleaded guilty Dec. 21, 2020.
Today, U.S. District Judge Kenneth Hoyt sentenced Beard to a total of 200 months of imprisonment. The court considered victim impact statements and took into account Beard’s future access to child pornography, noting whether Beard’s desire would be stronger than his will. Beard 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. He will also be ordered to register as a sex offender and will to pay restitution to the victims.
In February 2019, law enforcement initiated an investigation of child pornography sharing which led them to Beard. He was found to be a member, and a facilitator, of multiple child pornography groups. These people engaged in the distribution of thousands of images and videos. A subsequent forensic analysis resulted in the discovery of approximately 304 videos and 1,008 images of child pornography, including of children under the age of five, bondage and acts of violence.
Beard was distributing, receiving and possessing child pornography less than a year after his release from state prison for possession of child pornography.
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 Zahra Jivani Fenelon is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Mexican national pleads guilty to transporting people resulting in deathRead the Press Release
LAREDO, Texas – A 23-year-old man unlawfully residing in Laredo has admitted to conspiracy to transport 12 undocumented citizens, announced Acting U.S. Attorney Jennifer B. Lowery.
On April 22, Jesus Martinez-Villela attempted to flee authorities by driving off-road near Encinal. They ultimately located his abandoned truck with an injured person on the ground near it. Another victim was found unresponsive in the bed of the truck. He was pronounced dead on scene.
Law enforcement conducted a search of the surrounding area and eventually apprehended 12 additional people. All were determined to be undocumented citizens illegally present in the United States. Some of those were transported to a local hospital to be treated for their injuries.
Sentencing will be set at a later date before U.S. District Judge Marina Garcia Marmolejo. At that time, Martinez-Villela faces up to life imprisonment as well as a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Border Patrol and Texas Department of Public Safety. Assistant U.S. Attorney Yoona Lim is prosecuting the case.
Alice man admits to distributing methRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old local resident has entered a guilty plea to possession with intent to distribute 6.4 grams of meth after being found with several drugs, money and a stolen firearm, announced Acting U.S. Attorney Jennifer B. Lowery.
On May 8, law enforcement pulled Jacob Garcia over for a traffic violation. They soon observed him and believed he was intoxicated. The car also smelled of marijuana. They inquired as to whether he had been drinking or smoking marijuana, at which time he responded yes and that his wife had smoked marijuana in the vehicle. Authorities asked him to step out of the vehicle and conducted a thorough search.
They ultimately uncovered several bags of narcotics - 37 grams of cocaine, 6.4 grams of meth, 119 grams of marijuana and three THC pens. Authorities also discovered a stolen firearm and $1,260.
U.S. District Judge Nelva Gonzales Ramos accepted the plea and set sentencing for Jan. 12, 2022. At that time, Garcia faces a minimum of five and up to 40 years in federal prison as well as a possible $5 million maximum fine.
He has been and will remain in custody pending that hearing.
The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Jim Wells County Sheriff’s Office and the Alice Police Department conducted the investigation. Assistant U.S. Attorney Christopher Marin is prosecuting the case.
Murder crew latest in violent crime arrestsRead the Press Release
HOUSTON – A group of violent criminals are now facing possible severe federal penalties for firearms charges, to include use of a weapon resulting in death, carjacking, robbery and other felonies, announced Acting U.S. Attorney Jennifer B. Lowery.
Authorities arrested three Houston men today - Charles Dawson, 42, Damon Randolph, 47, and Kiyon Marshal, 40, today. They are expected to make their initial appearances in federal court before U.S. Magistrate Judge Sam Sheldon at 2 p.m. Also charged is Curtis Sandel, 36, who is already in custody and expected to be transferred to federal authorities to also make his initial appearance. All now face up to life in federal prison, if convicted
These men are now among several others who are charged with committing violent crimes in the Houston area.
U.S. Attorney Lowery joined several other leaders from federal and local law enforcement agencies to discuss the pervasive problem and their ongoing commitment to ensuring violent criminals are held accountable. Whether in state or federal court, leaders stressed that they strive to keep the community safe. The problem stretches across the entire Houston area, not in just one neighborhood or area.
In the aforementioned case, the men are accused of committing a robbery. During the crime, they allegedly shot and killed the victim and stole money and drugs from a local warehouse. They are charged with robbery, conspiracy to distribute narcotics and discharging a firearm resulting in death. They all now face up to life in prison, if convicted.
Also highlighted today was a violent carjacking case recently indicted in federal court. Iveon Gillaspie, 21, allegedly committed a violent carjacking Oct. 16, 2019. He was originally charged in state court and later allegedly committed another violent crime. A federal grand jury returned a two-count indictment charging him with carjacking and brandishing a firearm during and in relation to a crime of violence. He also now faces up to life in federal prison.
Earnest Taylor, 27, is a convicted felon. As such, he is prohibited from possessing a firearm. However, on Aug. 24, he fired shots from such a weapon at IRS agents who were attempting to serve a summons for aggravated identity theft. He is charged with illegally possessing the firearm and assault of a federal officer. He faces up to 20 years in prison.
Two more Houston men - Frederick Crouts, 19, and Donvonte Wallace, 24 - are charged with robbing what should be safe places in June. They allegedly robbed a Subway and a Family Dollar, brandishing a firearm during the crimes. They face 20 years as well as an additional minimum of seven years for the firearms charges.
Other people are also charged with unlawfully possessing firearms, such as Sergio Cabrera, 28, and Jordan Allen, 29. They face up to 10 years in federal prison, upon conviction.
The FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Houston Police Department; Harris County District Attorney’s Office; Harris County Sheriff’s Office; Houston Independent School District Police Department; Treasure Inspector General for Tax Administration; and U.S. Postal Inspection Service are all assisting in the various cases.
An indictment or complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Gangster Disciple gang member handed significant sentence for multiple offensesRead the Press Release
HOUSTON – A 34-year-old Houston man has been ordered to federal prison for numerous drug and firearm convictions, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately three hours before convicting Jason Edward Simpson aka Sixxgod Aug. 3 following a four-day trial. He was convicted of two counts of possession with the intent to distribute controlled substances and conspiracy to do so as well as conspiracy to carry or possess a firearm in relation to and in furtherance of a drug trafficking crime.
Today, U.S. District Judge Alfred H. Bennett, who presided over the trial and sentencing, ordered Simpson to serve 168 months in federal prison followed by five years of supervised release. At the hearing, the court heard additional information, including evidence of Simpson’s violent prior convictions. The court also heard about Simpson boasting as to his leadership role in the Gangster Disciples on social media and in emails and phones calls he made while in custody. He had also claimed he provided “A1” ecstasy to the “entire third ward.” In handing down the prison term, Judge Bennett noted Simpson’s criminal history, which included convictions for aggravated robbery, assaulting a law enforcement officer, burglary of a vehicle and various controlled substances offenses.
Simpson is a documented member of the Gangster Disciples. The jury saw one of his gang membership tattoos featuring a six-pointed star on the back of his right hand with the letter G in the center surrounded by the numbers seven and four. At trial, the jury heard the number 7 refers to the letter G, while 4 refers to D - initials for Gangster Disciples. The six-pointed star is a Star of David in honor of David Barksdale, who was an original founder of the Folk Nation gangs which includes the Gangster Discples.
On two separate occasions in August 2018, Simpson sold drugs to Jose Angel Garza and Fernando Isai Melendez who, in turn, sold it to others. Witnesses at trial specifically recalled Simpson’s tattoos on the back of his hand. The combined transactions involved over 1.5 kilograms of narcotics in the form of approximately 6,300 pills. During the exchanges, the men possessed a loaded firearm. Also present was Michael Manning, who pleaded guilty to being a felon in possession of a firearm.
At trial, the jury heard Simpson had claimed the drugs were ecstasy, but it was actually meth. The multi-colored pills were shaped like Minions, the Burger King logo and a Darth Vader head. At sentencing, the United States argued that one of the reasons pills are pressed into these shapes is to appeal to minors.
At the time of their arrests, authorities uncovered incriminating details on their phones. The jury saw evidence the phones contained substantial phone and text conversations in preparing and arranging the drug deals. Simpson had also made several calls and composed emails while in custody admitting to his involvement in the crimes.
The defense attempted to convince the jury there was insufficient evidence to prove Simpson was more than just merely present while the drug transactions occurred. They did not believe those claims and found him guilty as charged.
Melendez, 29, and Garza, 29, both of Houston, had previously pleaded guilty to conspiracy with the intent to possess a controlled substance. Melendez was sentenced to 57 months while Garza received 64 months. Manning, 34, Houston, served 18 months.
Simpson has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Houston Police Department conducted the investigation. Assistant U.S. Attorneys Adam Laurence Goldman and Christine Jiadai Lu prosecuted the case.
Justice Department Announces Investigation into Conditions at Five Juvenile Facilities in TexasRead the Press Release
The Justice Department announced today that it has opened a statewide investigation into the conditions in the five secure juvenile correctional facilities run by the Texas Juvenile Justice Department.
The investigation will examine whether Texas provides children confined in the facilities reasonable protection from physical and sexual abuse by staff and other residents, excessive use of chemical restraints and excessive use of isolation. The investigation will also examine whether Texas provides adequate mental health care.
“Too often children held in juvenile detention facilities are subject to abuse and mistreatment, and deprived of their constitutional rights,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State officials have a constitutional obligation to ensure reasonable safety for children in these institutions. The Department of Justice stands ready to protect the rights of children who end up in juvenile facilities and our investigation will ensure that the treatment of these children comports with constitutional standards.”
“The U.S. Attorney’s Office of the Western District of Texas is committed to protecting the constitutional rights of all persons, including vulnerable young persons incarcerated in Texas Juvenile Justice Department secure facilities,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “We look forward to partnering with the Civil Rights Division and other U.S. Attorney’s Offices in our state to conduct a fair and thorough investigation of these allegations.”
“Young people, even though they are confined in a juvenile facility, should not be abused, mistreated or deprived of essential services,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “We have a duty to ensure young people incarcerated in our state are held under safe and constitutional conditions.”
“No matter who they are – or what they’ve done – our state’s kids deserve safe environments,” said Acting U.S. Attorney Chad Meacham of the Northern District of Texas. “We cannot expect juvenile offenders to thrive later in life if they emerge from confinement traumatized by sexual abuse, excessive force, or incessant isolation.”
“The U.S. Attorney’s Office for the Eastern District of Texas is committed to protecting the constitutional rights of all Texas children, including those incarcerated in Texas Juvenile Correctional Facilities,” said Acting U.S. Attorney Nicholas J. Ganjei of the Eastern District of Texas. “We are proud to partner with the Civil Rights Division and the other U.S. Attorney’s Offices of Texas to conduct a fair and thorough investigation of these allegations.”
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Both statutes give the department the authority to investigate systemic violations of the rights of young people in juvenile correctional facilities. The department’s work has led to important reforms to protect the rights of young people housed in those facilities.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorneys’ offices in the Western, Eastern, Southern and Northern Districts of Texas. Individuals with relevant information are encouraged to contact the department via phone at 1-866-432-0438 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding juvenile correctional facilities and the administration of juvenile justice is available on its website at https://www.justice.gov/crt/rights-juveniles.
Lil’ Rob gets significant sentence in federal firearms and drug trafficking caseRead the Press Release
CORPUS CHRISTI, Texas – A 36-year-old Corpus Christi gang member with a lengthy criminal history has been ordered to federal prison following his conviction of firearms and drug trafficking offenses, announced Acting U.S. Attorney Jennifer B. Lowery.
A federal jury convicted Robert Loya aka Lil’ Rob May 20 for possession with intent to distribute meth and possession of a pistol and a stolen .50 caliber long-range rifle following a two-day trial and approximately 45 minutes of deliberation. He is a convicted felon and ranking member of the Texas “Mexikan” Mafia.
Today, U.S. District Judge Drew B. Tipton handed Loya a total sentence of 360 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard that Loya had continued his drug trafficking activities, even after his arrest, by directing a female accomplice to smuggle narcotics into the facility where he was incarcerated.
Authorities obtained information through an unrelated investigation in Laredo that led to the execution of a search warrant at Loya’s residence Feb. 21, 2020. At that time, law enforcement seized two firearms, assorted ammunition and over seven kilograms of meth. The jury also heard that Loya was on federal supervised release for a previous firearms conviction at the time of the search. However, he had not provided his supervision officer with his actual address, falsely claiming to live with his parents next door.
After the search, Loya fled the area and remained a fugitive for almost three months before his arrest May 13, 2020, in Corpus Christi near his girlfriend’s home.
He has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Immigration and Customs Enforcement’s Homeland Security Investigations and the FBI conducted the investigation with the assistance of the Texas Department of Public Safety and the Corpus Christi Police Department. Assistant U.S. Attorneys Molly K. Smith and Brittany L. Jensen prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former police officer sentenced for using hidden camera to obtain child pornographyRead the Press Release
BROWNSVILLE, Texas – A 32-year-old former officer with the Primera Police Department (PPD) has been ordered to federal prison for possessing child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Joel Alex Sandate pleaded guilty April 15.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered him to serve a 120-month sentence. At the hearing, the court also heard additional information today including the victim impact statement from the victim and her mother. Sandate was further ordered to pay $4,320 in restitution to the known victim and ordered an additional $10,000 special assessment. Sandate will also serve 20 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
The investigation revealed that from September 2019 to March 2020, Sandate had installed hidden cameras to capture recordings of a minor female. He saved the recorded videos onto various computer media devices such as his cellphone, a sim card and a USB drive.
Another PPD officer had discovered the images and reported it to authorities.
Sandate will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation with the assistance of PPD, Texas Rangers and the Cameron County District Attorney’s Office.
Assistant U.S. Attorneys Ana C. Cano and Jose A. Esquivel Jr. 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 tab on that page.
Local man sentenced after shop owner shot in violent armed robbery attemptRead the Press Release
CORPUS CHRISTI, Texas - A 41-year-old Corpus Christi has been ordered to prison for role in an attempted armed robbery of local clock shop, announced Acting U.S. Attorney Jennifer B. Lowery.
A federal jury convicted Eric Richard Garza June of attempting to effect commerce by robbery and discharging a firearm during and in relation to a crime of violence. They deliberated for only approximately one hour following a two-day trial.
Today, U.S. District Judge Nelva Gonzales Ramos handed Garza a 78-month-term of imprisonment for the attempted robbery and an additional 120 months for the discharge of a firearm which must be served consecutively. The total 198-month prison term will be immediately followed by five years of supervised release. At the hearing, the court heard from the victim who explained how he suffered severe physical and psychological injuries as a result of being shot twice as well as financial losses from lost wages and hospital bills. In handing down the sentence, the court noted the severity of the offense, the harm caused to the victim and his financial losses as a result of Garza’s crime.
On Dec. 14, 2018, Garza drove to Central Watch and Clock Repair in Corpus Christi with Christopher Rangel-Musial. They put on masks and entered the store. Once inside, Rangel-Musial brandished the 9mm semi-automatic pistol Garza had given him and pointed it at the owner as Garza had instructed. Garza then demanded the victim to get on the ground, but he refused. Garza subsequently told Rangel-Musial twice to shoot the victim. Once again, Rangel-Musial did as told and fired three shots, hitting the victim in the stomach and back.
The shop owner managed to get to his revolver and chase Garza and Rangel-Musial out of the store. The victim shot Rangel-Musial as he fled.
At trial, the victim testified about the injuries he sustained when the would-be robbers shot him. The victim required two surgeries, lost eight inches of his colon as well as his spleen and suffered an injured kidney. He was in the ICU for four days. He now has an 11-inch scar as a constant reminder of that day and suffers from persistent insomnia.
At trial, the defense attempted to convince the jury that Rangel-Musial’s girlfriend was the accomplice. However, the victim was steadfast in his testimony that the voice he heard tell Rangel-Musial to “shoot him” belonged to a man. The jury did not believe the defense theory and found Garza guilty as charged.
Garza has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Rangel-Musial, 26, Corpus Christi, previously pleaded guilty, accepted responsibility and testified against Garza at trial. He later received a 108-month prison sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorneys Joel Dunn and Christopher Marin prosecuted the case.
Drug trafficker sentenced for meth and cocaine conspiracyRead the Press Release
LAREDO, Texas – A 45-year-old Laredo resident has been ordered to federal prison for his role as a leader-organizer in a meth distribution conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Federico Castanon pleaded guilty June 21.
Today, U.S. District Judge Marina Garcia Marmolejo to 144 months in prison. At the hearing, the court heard evidence Castanon was a leader/organizer of a drug trafficking organization. He continued to attempt to coordinate criminal activity by speaking to associates in coded language on recorded jail calls while in custody. In imposing the sentence, Judge Marmolejo noted that if he was continuing in his attempts to still coordinate drug trafficking while in custody, he clearly had no remorse for his actions.
Authorities had conducted an undercover operation which resulted in the Aug. 3, 2015, seizure of approximately three kilograms of meth and one kilogram of cocaine. The investigation identified Castanon as a leader/organizer of the smuggling event after he had met with law enforcement and discussed the seizure.
Castanon 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 assistance from Border Patrol. Assistant U.S. Attorneys Francisco J. Rodriguez and Ursula Smith prosecuted the case.
Crane company agrees to pay more than $4.5M to resolve lawsuit for non-compliance with Military SpecificationsRead the Press Release
HOUSTON – Crane Company has agreed to pay to the United States to resolve allegations it violated the False Claims Act (FCA) by failing to comply with Military Specification (Mil Spec) Mil-V 24624 for certain high performance butterfly valves and requirements for inclusion on the Qualified Products List (QPL) where the valves appeared. The valves were supplied for use in U.S. Navy ships.
“We are committed to ensuring that the military gets what it pays for,” said Acting U.S. Attorney Jennifer B. Lowery for the Southern District of Texas “We will vigorously enforce the rules and regulations governing military purchasing contracts.”
“Requirements like the Mil Spec and QPL play an important role in protecting the quality of the equipment received by the government, as well as the safety of military personnel,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies that knowingly fail to comply with these requirements will be held accountable.”
“This settlement highlights the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the DoD acquisition process,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to thoroughly investigate allegations of fraud and product non-conformance and pursue all available remedies.”
The settlement announced today resolves allegations that from May 2011 through September 2017, Crane supplied high performance butterfly valves to military ship builders that included Reinforced Teflon (RTFE) seats. From May 2011 to September 2015, Crane also supplied high performance butterfly valves that contained Monel bolting. The government contended that Crane sold the military Mil Spec valves with RFTE seats and Monel bolting that had not been approved for use by the Navy and failed to disclose these modifications to the valves in violation of the QPL Program, which governs the approval of products such as valves for use in military contracts.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the FCA by Corla Jacobson, a former Crane employee. The FCA permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Jacobson will receive $855,728 of the FCA settlement.
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Southern District of Texas with investigative support from DCIS and U.S. Navy Criminal Investigation Division.
Senior Trial Counsel Alicia J. Bentley of the Civil Division and Assistant U.S. Attorney Andrew Bobb of the Southern District of Texas handle the matter.
Related court documents and information from the civil lawsuit can be accessed on PACER.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Crane Company Agrees to Pay More Than $4.5 Million to Resolve False Claims Act Lawsuit for Non-Compliance with Military SpecificationsRead the Press Release
Crane Company (Crane) has agreed to pay to the United States over $4.5 million to resolve allegations that it violated the False Claims Act by failing to comply with Military Specification (Mil Spec) Mil-V 24624 for certain high performance butterfly valves and requirements for inclusion on the Qualified Products List (QPL) where the valves appeared. The valves were supplied for use in U.S. Navy ships.
“Requirements like the Mil Spec and QPL play an important role in protecting the quality of the equipment received by the government, as well as the safety of military personnel,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies that knowingly fail to comply with these requirements will be held accountable.”
“We are committed to ensuring that the military gets what it pays for,” said Acting U.S. Attorney Jennifer B. Lowery for the Southern District of Texas. “We will vigorously enforce the rules and regulations governing military purchasing contracts.”
“This settlement highlights the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the DoD acquisition process,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to thoroughly investigate allegations of fraud and product non-conformance and pursue all available remedies.”
The settlement announced today resolves allegations that from May 2011 through September 2017, Crane supplied high performance butterfly valves to military ship builders that included Reinforced Teflon (RTFE) seats. From May 2011 to September 2015, Crane also supplied high performance butterfly valves that contained Monel bolting. The government contended that Crane sold the military Mil Spec valves with RFTE seats and Monel bolting that had not been approved for use by the Navy and failed to disclose these modifications to the valves in violation of the QPL Program, which governs the approval of products such as valves for use in military contracts.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Corla Jacobson, a former Crane employee. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned United States ex rel. Jacobson v. Crane Co., No. 4:17-CV-01431 (S.D. Tex.). Ms. Jacobson will receive $855,728 of the False Claims Act settlement.
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Southern District of Texas with investigative support from the DCIS and the U.S. Navy Criminal Investigation Division.
Senior Trial Counsel Alicia J. Bentley of the Civil Division and Assistant U.S. Attorney Andrew Bobb of the Southern District of Texas handled the matter.
Related court documents and information from the civil lawsuit can be accessed on PACER.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
High-ranking gang member gets substantial sentence for drug traffickingRead the Press Release
HOUSTON – A 33 year-old Houston man with a lengthy criminal history has been ordered to federal prison after packaging thousands of ecstasy pills for sale, announced Acting U.S. Attorney Jennifer B. Lowery.
Marquese Scott aka Fatboi pleaded guilty Feb. 9, 2019, to possession with intent to distribute MDMA, commonly known as ecstasy. He has been repeatedly documented as a high-ranking member of the 59 PIRU Criminal Street Gang and has many tattoos identifying him as such.
Today, U.S. District Judge Andrew S. Hanen sentenced him to a total of 210 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about Scott’s lengthy criminal record, including aggravated sexual assault of a child, theft, multiple convictions of robbery, carjacking, drug possession, failing to register as a sex offender, unauthorized use of a vehicle and harassment of a public servant. Further, following the drug trafficking in the instant offense, Scott was convicted of dangerous conduct after he got into a fight with his co-defendant - Nicole Olajide, 33, Houston - and her mother, threatened to kill them and then slashed their tires with a knife. During sentencing, Scott attempted to introduce letters from them claiming it was Olajide’s fault he had done so.
In pronouncing the sentence, Judge Hanen noted Scott’s lengthy criminal history, including his convictions of violent crimes including his past convictions for robbery and and deadly conduct.
In 2018, Scott announced to potential buyers that he was selling several multi-kilogram quantities of meth and ecstasy. He then sent photographs of himself with several rocks of meth and “K-Packs,” which are gallon-sized baggies, each containing approximately ecstasy 1,000 pills. Scott advertised 6,000 ecstasy pills for $3,500.
Authorities executed a search warrant and found Scott and Olajide packaging ecstasy into the K-Packs. They recovered a total of approximately four kilograms of ecstasy.
Olajide had also pleaded guilty and later sentenced to 21 months in federal prison for her role in the offense.
Scott 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 Houston Police Department conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman is prosecuting the case.
Indian national pleads guilty to role in nationwide tech support refund scamRead the Press Release
HOUSTON – A 27-year-old Indian citizen illegally present in the United States who had resided in Houston has entered a guilty plea to conspiracy to commit mail fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
Sumit Kumar Singh admitted to participating in a fraud ring from 2018 – 2020 which operated out of various cities, including Houston. The scheme targeted elderly victims throughout the United States and elsewhere.
The ring tricked and deceived victims using various ruses and instructed them to send money via wire through a money transmitter business such as Western Union or MoneyGram, by buying gift cards and providing to the fraudsters and by mailing cash to alias names via FedEx or UPS.
One such scheme involved the claim of providing computer technical support services in order to gain remote access to victims’ computers. The fraud ring tricked and deceived victims into believing a technical support company purportedly helped them with their computers. They then told the victims they had erroneously refunded or overpaid them and that the victim needed to return the overpayment in cash via FedEx or UPS.
The scheme generally worked because fraudsters contacted victims by phone or via internet sites directing them to a particular phone number. Once victims contacted them, they were told various stories to include the victim was communicating with a technical support center that needed remote access to their computer in order to provide technical support services. Once a victim provided such access, the fraudsters gained access to their personal data and bank and credit card information.
Victims typically paid a fee to conspirators for the alleged technical support but were later told they were due a refund. Through paying for “technical support” or through the “refund” process, the ring gained access to the victim’s bank account(s) and credit cards and manipulated the accounts to make it appear the victim was paid too large a refund due to a typographical error (e.g., a victim received a refund of $10,000 instead of the intended refund amount of $100). Victims were then instructed to reimburse the ring by various means.
Victims were sometimes re-victimized multiple times and threatened with bodily harm if they did not pay.
Today, Singh admitted to acting as a runner to pick up parcels of victim cash using fraudulent international driver’s licenses in fake names.
U.S. District Judge Kenneth Hoyt accepted the plea and set sentencing for Dec. 20. At that time, Singh faces up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody while awaiting sentencing.
The FBI, U.S. Postal Inspection Service and IRS-Criminal Investigation conducted the investigation with assistance from Immigration and Customs Enforcement, Fort Bend County Sheriff’s Office and other local law enforcement agencies throughout the United States. Assistant U.S. Attorneys Belinda Beek and Quincy Ollison are prosecuting the case.
Houston crew convicted of violent ATM robberiesRead the Press Release
CORPUS CHRISTI, Texas - Three Houston men have pleaded guilty to a string of Love’s Travel Stop robberies throughout Texas and Louisiana, announced Acting U.S. Attorney Jennifer B. Lowery.
Christopher Bernard Brown aka Chris and C, 39, pleaded guilty today, while Wesley Jerome Davis, 28, and Kevin Wilson aka KCosa or KC, 33, admitted to their roles July 29.
Between May 29, and Sept. 13, 2019, the men conspired with each other to steal or attempt to steal ATMs and the currency they contained from at least nine Love’s Travel Stops. They admitted they threatened or used physical force towards customers or employees.
Brown typically served as a scout or lookout. Davis and Wilson wore masks and gloves and removed or attempted to remove the ATMs using a vehicle. The men would then lift the dislodged ATMs into a waiting vehicle and drive away.
They failed on three attempts but managed to take a significant amount of money from the stolen ATMs in Hungerford, Seguin, Lufkin, Cleveland, and Three Rivers as well as in Vinton, Louisiana.
In the Three Rivers incident, Brown or others came into contact with Love’s employees or customers and made statements and gestures that incited fear. Employees did not intervene for fear of sustaining serious bodily injury.
In Seguin, a good Samaritan attempted to stop the ATM robbery but Davis struck him twice. The victim fell to the floor and suffered bodily injury from a head wound.
Brown is set for sentencing Jan. 5, 2022, before U.S. District Judge David S. Morales, while Wilson and Davis are set for Oct. 27. At their hearings, each faces up to 20 years in federal prison.
They have been and will remain in custody pending their sentencing hearings.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of sheriff’s offices in Live Oak, Angelina, Brazoria, Wharton, Medina and Cass Counties; police departments in Angleton, Cleveland, Seguin and Lufkin and Vinton, Louisiana.
Assistant U.S. Attorney Reid Manning is prosecuting the case.Man Sentenced for Role in International Human Smuggling ConspiracyRead the Press Release
A Bangladeshi national was sentenced today to 46 months in prison for his role in a scheme to smuggle undocumented individuals from Mexico into the United States.
According to court documents, between March 2017 and June 2019, Mohamad Milon Hossain, 41, a Bangladeshi national formerly residing in Tapachula, Mexico, conspired with and assisted human smugglers operating out of Bangladesh, South and Central America, and Mexico to bring numerous undocumented individuals to the U.S. border in exchange for payment. Hossain operated out of Tapachula where he maintained a hotel that housed the individuals on their way to the United States. Hossain provided plane tickets and other assistance for the individuals to travel from Tapachula to Monterrey, Mexico, where co-conspirator Moktar Hossain assisted their illegal crossing into the United States.
“This human smuggling conspiracy operated on a global scale and endangered the lives of Bangladeshi migrants,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Justice Department will continue working with our law enforcement partners here and abroad to bring human smugglers like Hossain to justice and to disrupt these criminal networks that unlawfully bring migrants from across the world into the United States.”
“This criminal placed profit before life,” said Acting Assistant U.S. Attorney Jennifer B. Lowery of the Southern District of Texas (SDTX). “Human smugglers like Hossain often put migrants in dangerous situations, many leading to serious injury and even death. The SDTX is no stranger to this issue and will fervently pursue the battle, holding accountable not only the transporters, but any individuals who provided assistance along the way.”
“Today’s sentencing is a great example of how Homeland Security Investigations (HSI) uses its worldwide resources and interagency partnerships to bring international criminals like Mohamad Milon Hossain to justice in the United States,” said Special Agent in Charge Shane Folden of HSI San Antonio. “Hossain was a key facilitator and smuggler of Bangladeshi nationals and his actions put our national security at risk. HSI is committed to working with its domestic and international partners to combat this type of crime throughout the globe.”
This case was investigated by HSI Laredo, with assistance from the HSI Human Smuggling Unit, HSI Mexico City, HSI Houston, HSI Calexico, HSI Monterrey, U.S. Customs and Border Protection (CBP) Office of Field Operations, CBP Border Patrol and the U.S. Marshals Service. This investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorneys Erin Cox and James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted this case with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
Attorney General Merrick B. Garland established Joint Task Force Alpha to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the countries of Guatemala, El Salvador, and Honduras. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from U.S. Immigration and Customs Enforcement’s HSI and CBP. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Man who shot bank teller in the head gets life…and moreRead the Press Release
BROWNSVILLE, Texas – A 28-year-old Harlingen man has been ordered to federal prison for life for robbing a bank with a dangerous weapon, announced Acting U.S. Attorney Jennifer B. Lowery.
Muhamed Pathe Bah pleaded guilty June 28 on the eve of trial.
Today, U.S. District Judge Rolando Olvera ordered him to serve the maximum – receiving life in prison for the robbery as well as another 25 years for the use of the firearm during a crime of violence to run consecutively. Bah must also pay restitution to his victim. At the hearing, the court heard about the viciousness of his crime and the extreme emotional impact on the victims.
in shooting the bank teller in the head within five seconds of interacting with him,
On June 26, 2020, at approximately 9:45 a.m., Bah entered a Texas Regional Bank on Sunshine Strip in Harlingen and made his way to a bank teller. Within five seconds, Bah pulled a pistol from a bag and shot the teller in the head. Bah then robbed the bank and fled the area with the stolen money.
Law enforcement saw a man matching his description who was riding a bicycle. It was Bah. Authorities then took him into custody.
During the arrest, he had a pistol with a spent shell casing in its cylinder on him as well as a large amount of money in a bag he was carrying. He was also in possession of a mask that matched the description witnesses had given.
The FBI conducted the investigation along with the Harlingen Police Department. Assistant U.S. Attorneys David A. Lindenmuth and Nicole Piquette prosecuted the case.
Texas Man Pleads Guilty to Federal Charges for Fraudulently Obtaining over $1.6 Million in Paycheck Protection Program LoansRead the Press Release
A Texas man pleaded guilty today in the Southern District of Texas to fraudulently obtaining more than $1.6 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 court documents, Lee Price III, 30, of Houston, submitted two fraudulent PPP loan applications to two different lenders on behalf of entities 713 Construction LLC and Price Enterprises Holdings LLC. The 713 Construction LLC PPP loan application was made in the name of an individual who died shortly before the application was submitted. Through these two PPP loan applications, Price sought and obtained over $1.6 million in PPP loan funds.
Price falsely represented the number of employees and payroll expenses in each of the PPP loan applications. To support the fraudulent PPP applications, Price also submitted fraudulent tax records and other materials. After he received the PPP loan funds, Price spent the money on a Lamborghini Urus, a Ford F-350 truck, and a Rolex watch, and to pay off a loan on a residential property, among other purchases.
The Department of Justice, along with law enforcement partners, seized over $700,000 of the disbursed PPP funds in this matter.
Price pleaded guilty to two counts of wire fraud and three counts of money laundering. He is scheduled to be sentenced on Nov. 29 and faces a maximum penalty of 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; Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG)–Central Region; Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General (SBA-OIG)–Central Region; and Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service – Houston Division made the announcement.
FHFA-OIG, SBA-OIG, and the U.S. Postal Inspection Service–Houston Division investigated the case.
Trial Attorney Andrew Tyler of the Criminal Division’s Fraud Section and Trial Attorneys James Alexander and Matthew Grisier of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister of the Southern District of Texas. Assistant Deputy Chief Timothy A. Duree and Trial Attorney Kyle Maurer of the Criminal Division’s Fraud Section assisted in the investigation of the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 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.
Local residents arrested in large-scale poly-drug caseRead the Press Release
McALLEN, Texas - A total of 16 Starr County residents are now in custody following the return of two separate and unrelated indictments alleging the distribution of large quantities of meth, cocaine and marijuana, announced Acting U.S. Attorney Jennifer B. Lowery.
Among those taken into custody were Rio Grande City residents, Roel Valadez, 31, Jose Diaz, 43, Isidoro Garza, 53, Jeronimo Morin, 34, Tomas Martinez-Talamantes, 30, Noel Avila, 46, Samuel Torres, 33, Hugo Canales, 63, Jose Ortiz, 46, Ignacio Garza, 49, Diego Reyes, 40, Marcos Barrientos, 38, Janella Chavarria, 32; and David Gomez, 22, Mission. Abel Reyes, 33, Mission, turned himself in a short time ago. With the exception of Diaz, who will make his initial appearance in Austin, the remaining defendants are expected to appear before U.S. Magistrate Judge Scott Hacker tomorrow at 9 a.m.
A federal grand jury returned a 10-count indictment under seal Sept. 7, charging Garza, Reyes, Barrientos, Chavarria, Valadez, Vela, Gomez, Garza, Diaz, Ortiz, Canales, Morin, Avila and Torres. It alleges they conspired from July 2020 to September 2021 to possess with intent to distribute more than 500 grams or more of meth, five kilograms or more of cocaine and 1000 kilograms of marijuana. Some are also charged with substantive counts on varying dates of possession with intent to distribute one or more of the narcotics and maintaining a stash house.
A separate two-count sealed indictment was also returned Sept. 7. It charges Martinez-Talamantes beginning in June of 2020 and continuing until August of 2020 conspired to possess 500 grams or more of methamphetamine. They are also charged with the substantive count of possession of 193 kilograms of methamphetamine.
All face a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine upon conviction. Those charged in the substantive possession counts could also face additional terms from five to 40 years and/or a maximum of 20-year-term of imprisonment. .
This investigation was an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation IceRiver. OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States through prosecutor-led, intelligence-driven, multi-agency task forces that leverage the authorities and expertise of federal, state and local law enforcement. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
The Drug Enforcement Administration, FBI and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of IRS-Criminal Investigations; U.S. Marshals Service; Hidalgo County District Attorney’s Office; Bureau of Alcohol Tobacco, Firearms and Explosives, police departments in Pharr, Edinburg and University of Texas; sheriff’s offices in Brooks, Jim Wells County, Live Oak, Cameron and Hidalgo Counties; Border Patrol; Customs and Border Protection, Texas Department of Public Safety, Texas Rangers and National Guard.
Assistant U.S. Attorneys Patricia Cook Profit and Jongwoo Chung are prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Another extradition lands third ELN member on U.S. soil for international cocaine distributionRead the Press Release
HOUSTON – Another alleged associate of one of the most serious transnational criminal organizations has arrived from Colombia and is set to make his initial appearance in Houston federal court.
Jose Gabriel Alvarez Ortiz, 26, landed in Houston just moments ago. He is set to appear before U.S. Magistrate Judge Peter Bray at 2 p.m. tomorrow.
Ortiz is charged with distributing cocaine with other alleged members of the National Liberation Army (Ejército de Liberación Nacional aka ELN), two of whom - Yamit Picon-Rodriguez aka Choncha, 36, and Henry Trigos-Celon aka Moncho Picada, 44, were extradited last month. They are facing narco-terrorism and drug trafficking charges.
ELN is a Colombian guerrilla group officially designated as a foreign terrorist organization Oct. 8, 1997. It continues to operate as one of the largest narco-terrorism organizations in the world.
A federal grand jury returned an indictment against Ortiz, Picon-Rodriguez and Trigos-Celon and others on Feb. 12, 2020. Colombian authorities took them into custody at the request of the United States in September 2020.
Ortiz is charged with international cocaine distribution. In early 2019, Ortiz and four others allegedly participated in distributing approximately 30 kilograms of cocaine in Colombia, knowing it would be imported into the United States.
Ortiz’s co-defendants are also charged with distribution of a controlled substance and knowing or intending to provide anything of pecuniary value to a person or organization that engages in terrorism or terrorist activity (narco-terrorism).
According to the indictment, Picon-Rodriguez, Trigos-Celon and others were involved in an ongoing 20-year conspiracy to distribute cocaine from Colombia to the United States knowing or intending to provide pecuniary support to the ELN.
Suspected ELN leader Villegas-Palomino aka Carlos El Puerco, 38, is also charged but not yet in custody. He is considered a fugitive as are Jaime Miguel Picon-Rodriguez aka Chencho and Jairo, 38, and Diomedes Barbosa-Montaño aka El Burro, 38. A warrant remains outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 1-800-CALL-FBI or submit tips online at tips.fbi.gov. The U.S. Department of State, through its narcotics rewards program, is offering up to a $5 million reward for information leading to the arrest and/or conviction of Villegas-Palomino.
The Houston Divisions of the FBI and Drug Enforcement Administration (DEA) conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). FBI and DEA agents in Bogota provided substantial support as did the Department of Justice’s (DOJ) multi-agency Special Operations Division, including assigned attorneys from the Narcotic and Dangerous Drug Section and National Security Division, as well as DOJ Judicial Attaches in Colombia with the cooperation of Colombian authorities. DOJ – Office of International Affairs, Houston Police Department, U.S. Southern Command and international partners including the Colombian Army, National Police, National Prosecutor's Office and Technical Body of Investigation also provided critical assistance.
The operation, dubbed Operation Catatumbo Lightning, is part of an OCDETF Strike Forces initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations. The specific mission of the Houston Strike Force is to disrupt, dismantle and prosecute the drug trafficking organizations that are designated Consolidated Priority Organization or Regional Priority Organization Target heads with their affiliates that impact Houston and south Texas.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz of the Southern District of Texas are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.